Stuart Corner
Monday, 03 September 2007 07:12
Opinion and Analysis
Page 2 of 3
During the year the company increased revenues 103 percent to $17.4 million and subscriber numbers 71 percent to 77,000. However it also managed to increase its EBITDA loss from $10 million the previous year to $12.5 million. Net loss for the year was $13.8 million compared to $7.3 million last year and the company managed to burn through a sizeable portion of the $26 million cash injunction from Seven.
Cash at the start of the year was $3.0 million, net proceeds from Seven's equity purchase $25.8 million, a total of $28.8 million. At 30 June 2007 just $12. 3 million of this remained.
My Net Fone ended the year with a gross revenue of $3.3 million, doubling last year's revenue of $1.6m. Its customer numbers reached 35,000 compared with 12,500 at the end of the 06 financial year.
The company made a net loss of $3,250,320 which included a $700,000 share base expense arising from the valuation of options by an independent professional valuer. It raised $900,000 during the year from a share issue to finish they year with $1.1 million in the bank compared to $1.9 million a year ago.
One interesting comparison between the two companies is that My Net Fone managed to add 22,500 net new subscribers with a marketing spend of just $455,000. For engin to add around 30,000 cost $5.7 million in marketing expenses.
Also, I'm not sure of the exact number of new Engin subscribers because at a briefing in late July 2006 (a level of detail not provided this year) the company was claiming 50,000 total subscribers and 43,000 paying a monthly fee (as opposed to making paid calls from a free Engin softphone). To get the June 07 figure of 77,000 as a 71 percent increase it would have had to have 45,000 at 30 June 2006.
