Chariot makes modest growth in tough times

Stuart Corner
Wednesday, 15 March 2006 16:18

IT Industry - Strategy

ISP Chariot has reported revenue of $11.97 million for the six months to 31 December, and eight percent increase on the previous corresponding half, and a small net loss of $1,000. Normalised EBITDA was down 55 percent to $1.1 million, and the company had 125,000 active customers.

It expects the synergies from its recent acquisition of Alphalink to flow onto its balance sheet from 1 January 2006 and to see accelerated progress on the rollout of its wireless network during the second half. The company expects to double EBITDA in the second half.

Managing director, Robert Horlin-Smith said: "There has been intense competition within the ISP/telecommunications sector, consequently resulting in significant pressure on margins and regulatory issues associated with the Unconditional Local Loop.

He said that competitive pressure had lead Chariot to refine its strategy and to adopt wireless broadband, particularly for regional Australia, and value add to this service with VoIP. "The introduction of these strategic moves should restore significant margin back to the business and also reduce costs to customers," he said.

The company says it has started its VoIP rollout and will now undertake marketing of this service to its customers.