Unwired doubles revenues & customers at constant opex

Stuart Corner
Friday, 25 August 2006 18:36

IT Industry - Strategy

Broadband wireless service provider, Unwired Australia, has managed to increase operating revenues by 104 percent to $23.4 million for the year to 30 June and customer numbers 90 percent to 53,405 with only a one percent increase in operating expenses, to $40.1 million.
It achieved this despite increasing staff numbers by 15 percent to 112 during the year. However it continues to burn cash and is still a long way from profitability. Net loss for the year was $34 million, a 20 percent improvement on the previous year. Accumulated losses now stand at $105 million. Year end cash balance was $15.9 million, compared to $19.7 million last year. er Unwired is now well funded thanks to an investment of $37 million by Intel in August 2005.


In previous years, when it had only a network in Sydney, the company had forecast that it would be cashflow positive when it reached 70,000 subscribers in Sydney but no longer makes any predictions on when this milestone will be passed.

Meanwhile ARPU continues to decline, reflecting the intense competition in the broadband market. Retail ARPU was $37.05 per month and wholesale $33.91, down from $39.09 and $36.10 a year ago and $46.03 and $43.03 two years ago.

The percentage of customers served through channels has remained largely unchanged, In June 2005 it was retail 64 percent, direct 30 percent, wholesale 6 percent. In June 2006 the breakdown was  64 percent retail, 29 percent direct, 7 percent wholesale.