EFTel goes into the red

Stuart Corner
Tuesday, 03 March 2009 02:18

IT Industry - Strategy

ISP EFTel (ASX: EFT) has reported a half-year revenues increase of five percent to $19m, its highest ever, and a net loss after tax of $1.7m, compared to a net profit of $146k in the previous corresponding period.

The company said the main contributors to the loss were one-off currency movements, costs associated with the introduction and integration of the company's new BroadbandNext network, ramp-up of the new customer support facility in Malaysia, and transition costs associated with the acquisition of ISPs in the Conceptual Internet group.

Outgoing CEO Simon Ehrenfeld said, "The results are a reflection of the company's determination to expand through our BroadbandNext network. From a low point of profitability last September, the company's trading has improved dramatically and continues to do so."

EFTel has several business divisions, wholesale, retail and corporate. EFTel Corporate offers tailored solutions to business and government clients throughout Australia. It is a preferred supplier of the Victorian Government. EFTel Retail is a top 10 ISP. Its online brand aaNet is claimed to be one of Australia's most popular broadband providers receiving high customer satisfaction ratings in both the PC Authority and Australian Broadband surveys.

EFTel Wholesale services a quarter of Australia's ISPs with a range of services including IP, co-locations, dialup ports and DSL broadband. It offers outsourcing services delivered form its business processing centre located at Cyberjaya in Kuala Lumpur's Multimedia Super Corridor.