iiNet have provided a very comprehensive EBIT Variance Analysis. Originally iiNet forcasted an EBIT of $40.1m this has now been downgraded to $24.6m.
Some interesting stuff:
customer credits - $1.9m
Double counting of Usage Revenue - $1.8m
Professional Fees - $1.1m (this how much iiNet spent on disputes taken through the ACCC against Telstra!)
Dial Revenue Shortfall - $3.1M (dodgy billing data)
ADSL ARPU Shortfall - $1.4M
Voice ARPU Shortfall - $1M
iiNet have also announced a strategic alliance with Powertel.
Now, if I was a shareholder I would be concerned with the inaccuracy of the financial information provided by iiNet. Without a doubt iiNet will be and are going to be punished on the sharemarket.
iiNet are the third largest ISP in the Australia and they have invested heavily in DSLAMS and infrastructure. It goes to show that this LLU is not all that it appears to be.
Other related posts:
The Butler and Butler 5 Point Plan
National to invest in broadband
We Blew our cap again
Comment by Michael, on 29-May-2006 16:58
First, it's not LLU, it's ULL - unbundled local loop. And second, iiNet do not use ULL, yet. They use SSS.
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