VoIP market getting tougher

Stuart Corner
Monday, 03 September 2007 06:12

Opinion and Analysis

What Engin did not repeat this year was its boast of July 2006 that it would have close to 100,000 subs by June 2007 even without the additional funding that was later received from Seven!

In a footnote in the 'subsequent events' section of tis report the company said: "The board is also prepared to consider further investments that may considerably step up customer levels, add scale generally and thereby widen the Engin community for cross marketing the triple play strategy."

It will certainly need to do something to reduce its cash burn rate.

These results were accompanied by some unexpected staff changes. First and foremost was the revelation that the new CEO, Max Alexander, to have been imported from the UK, would no longer be coming. It had been envisaged that the current CEO, Ilka Tales would continue for a transition period and he will remain until a new CEO is found.

When Alexander's appointment was announced on 31 July his experience was seen as key to Engin making the transition from a simple VoIP player to full-blown triple play provider. Engin chairman, Will Jephcott, said at the time: "He is the ideal person to take Engin forward in its next stage of development. With a special focus on marketing, he brings to Engin significant experience in building the fastest growing telecoms business in the UK coupled with media and Internet experience at Sky. Max's experience at growing companies and his demonstrated operational capabilities provide the skills we need to take the company forward during what is expected to be a high growth phase."

The company will now likely struggle to regain momentum lost from this unexpected development.

Engin also announced last week the resignation of Jephcott, foreshadowed earlier in the year, and of CFO Paul Jeronimo. He will be replaced by Mark Zworestine who for the past 8 years been the CFO and group company secretary at E*TRADE Australia.