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Unwired Revenue Up 46% |
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Written by Adam Gosling
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Thursday, 22 February 2007 |
Wireless broadband provider, Unwired Group has announced its half
yearly result for the period ending December 31st and all hte company's
key metrics are heading in the right direction, revenue up costs down,
cash in the bank - steady.
Its a good result for a small company working at the cutting edge of
the wireless revolution, though the roll-out of network services to a
broader section of the community might be abetter company mission than
shaving 6 per cent off costs.
For the period in 2006 compared to the last half of calendar 2005, the
company's revenues grew 46% to A$15.8 million, while expenses from
operating activities before tax,
interest, depreciation and amortisation, decreased by 6% to A$20.1
million. Customer numbers grew 51% to 63,587 at the end of December
compared to
42,400 for the corresponding period in 2005.
This translated to an improved EBITDA loss of just A$4.2 million a
significant 59% improvement in second half of calendar 2006 compared to
the equivalent 2005 period. Net loss improved also but a more modest
20% to total A$14.7 million.
"We are very happy with our financial position," said Unwired CEO,
David Spence. "We have achieved a sustainable growth rate while at the
same time decreasing operating costs. Our EBITDA continues to improve
and we are well on the way to achieving positive EBITDA. We have a
solid cash position and are well advanced in our plans to transition to
WiMAX in 2008."
The
company revenues came primarily from operating revenue such as modem
sales and service subscriptions. The A$15.8 million compares favorably
to the first half 2006 at A$12.6 million and A$10.9 million
for the corresponding period in 2005.
The company increased its marketing budget from A$3.0 million to A$4.1 million in part because of the Melbourne launch in
September. The
Melbourne launch was the main highlight and cost Unwired A$2.2 million
in capital costs, but this as significantly lower than the first half
of the year at A$7.4 million and A$3.0 million in
the 2005 period.
There were no spectrum lease rental expenses, compared to $693,000 for
the corresponding 2005 period. The
spectrum rental being paid to AUSTAR for its 2.3GHz spectrum ceased
when Unwired bought the spectrum from AUSTAR in late 2005; and also
there were n capital raising expenses for the period, compared to $1.7
million in the corresponding period which related to Unwired's 2005 fundraising efforts.
The
company had access to $12.4 million in cash and cash equivalents plus
access to more than A$4 million in government funding and lease
facilities. During the period the company announced that Mitsui & Co., Ltd (Mitsui) would
invest between A$5 million and A$8 million in Unwired and work with the
company on developing mobile WiMAX infrastructure and applications. However, Mitsui
is not required to submit the cash funds unless Unwired completes the
raising of an additional $12.6 million by 30 June 2007.
· The
securing of a 10-year lease facility in October, arranged by Meridian
International Capital Limited for some of Unwired's base station
equipment. It provides $5.4 million in funding, with Unwired receiving
the first part of this funding in the December quarter.
· The awarding of a $1.9 million AusIndustry grant to Unwired
in November to further develop and commercialise
Unwired's world first innovative network management tool, Gyro
Wireless. Unwired will receive the funding over a two-year period in
quarterly instalments. The first instalment of $387,000 was paid in
the December quarter.
· The
submission of a joint proposal for funding under the Broadband Connect
Infrastructure Program (BCIP) from AUSTAR, Unwired and Soul as the AUSalliance consortium. The
consortium believes the extensive proposed national broadband network
achieves the policy goals set by the Minister. The consortium will
employ a mix of technologies that maximises coverage of under-served
premises while offering efficiency and value for money.
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