NBR report says Orcon may need some help

Forums › 2degrees (including Slingshot, Orcon, Flip, Stuff Fibre, MyRepublic, 2talk and Vocus) › NBR report says Orcon may need some help

freitasm

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#141014 27-Feb-2014 07:24

NBR report (paywall): "Taxpayer money at risk as Orcon reaches out for help":

...which is understood to have stumped up at least $10 million of debt as part of a secretive sale process last April.

So Orcon is in the crap and for sale according to the NBR. The consumer ISP market really is a super low margin bloodbath.

— Steve Biddle (@stevebiddle) February 26, 2014

@freitasm @stevebiddle ISP market was always going to consolidate once UFB got moving. Orcon now looks like the necessary sacrifice

— Bill Bennett (@billbennettnz) February 26, 2014

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ubergeeknz

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Vocus

#995391 27-Feb-2014 11:34

It's as simple as raising more capital to fund expansion... not sure why it's being blown so out of proportion.

FireEngine

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#995434 27-Feb-2014 12:23

Lyderies: So no more Orcon?

Not even the NBR article claims that!

From Greg our CEO. Just added to the comments of the NBR article…

“Can I suggest a more appropriate headline: “Orcon looks to attract fresh capital to continue strong growth path”.

Gross acquisitions have grown by more than 26 percent in the last quarter and 70% of those acquisitions have been for one of our unlimited plans. EBITDA is strong, ARPU is up, as is our Net Promoter Score, and our customer churn is at its lowest in over three years.

In response to such a speculative headline; Orcon is up to date on all current lender arrangements – the details of which are confidential so I can’t comment further. What I can say is that Orcon is seeing fantastic growth, which is why we have engaged Grant Samuel in the process to attract fresh capital into the business.”

Regards FireEngine