Unwired still unprofitable

Stephen Withers
Thursday, 22 February 2007 06:53

Your IT - Home IT

Half-year results from Unwired show the wireless broadband company continuing to move in the right direction, but the red ink is still flowing.

Operating revenue has increased, presumably due to the Unwired's advertising campaign and the completion of its initial Melbourne rollout. The end of that project also means capital expenditures have fallen. At the same time, operating expenses have been reduced.

However, the company's operating activities are still cashflow negative, suggesting it still doesn't have enough subscribers.

The company posted a net loss of $A14.7 million for the period ending 31 December 2006, an improvement of 20 percent on the corresponding period in 2005.

"We are very happy with our financial position,” said Unwired CEO, David Spence. “We have achieved a sustainable growth rate while at the same time decreasing operating costs. Our EBITDA continues to improve and we are well on the way to achieving positive EBITDA. We have a solid cash position and are well advanced in our plans to transition to WiMAX in 2008."

A consortium comprising Unwired, Austar and Soul has submitted a proposal for funding under the federal government's Broadband Connect Infrastructure Program. The partners propose to use a variety of technologies to provide value-for-mone broadband access in under-serviced areas.