$76.8Mil Loss

Forums › 2degrees (including Slingshot, Orcon, Flip, Stuff Fibre, MyRepublic, 2talk and Vocus) › $76.8Mil Loss

SteveON

1916 posts

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#85924 28-Jun-2011 10:08

It's all part of the plan right??!

http://www.nbr.co.nz/article/2degrees-makes-768m-loss-107m-revenue-ck-96036

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1923 posts

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#486751 28-Jun-2011 10:14

Yes.
First you have to get the customers.... revenue follows

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heavenlywild

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#486753 28-Jun-2011 10:16

Mostly due to building more towers and infrastructure.

NonprayingMantis

6434 posts

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#486755 28-Jun-2011 10:18

Probably is part of the plan.

A fun little exercise to guess their ARPU.

Take their average base for the year. We know they had just under 600k a few months back, and 280k last Feb. So maybe an average base for the year of 400k?

Take the $110m revenue. Remove some amount for inbound roaming, some for handset revenue, and some other amount for interconnect revenue. Maybe that leaves around $80m for actual voice/txt/data revenue?

$80m across 400k = ARPU around $16, which is what most people were saying when they announced the 280k customers last year.

Not terible, but not particularly good either, and would explain why they are cold calling some of their customers to try and get them onto pay monthly plans. pretty hard to do that though when the $19 combo pack is so good.

SteveON

1916 posts

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#486759 28-Jun-2011 10:23

They also had depreciation of about 19Mil. So I would expect this all to be part of the ~5yr Plan.

amanzi

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#486761 28-Jun-2011 10:24

How about an alternate headline for that article?

"2degrees Revenue Up By 400%!"

:-)

NonprayingMantis

6434 posts

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#486765 28-Jun-2011 10:31

reveue is vanity, profit is sanity.

wanghou168

453 posts

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#486768 28-Jun-2011 10:35

sounds pretty bad
but that is the truth about financial investment
loss in the short term, profit in the long term

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valtam

396 posts

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#486844 28-Jun-2011 12:59

Although not ideal, its expected that most start up corporations in the first few terms run at a loss, profits in the long term will surpass the initial losses, especially in competitive markets.

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Batman

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#486851 28-Jun-2011 13:17

big risk in small market, that's the way NZ companies who want to make it big, operate. look at every VIP that went bust (or is/had been in trouble) ... serepiros, borders, AMI, certain carpet making company .... just to recall a few that's still in the cerebral cortex...

call it greed or calculate risk investment :)

2degrees

178 posts

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#486926 28-Jun-2011 15:05

2degrees has become a $100m business in just 18 months. Our performance to date is in line with our business plan and we have solid shareholder support in winning a bigger share of the NZ mobile market. Thanks to all of our customers for their support!

www.2degreesmobile.co.nz

CALL FREE 0800 022 022

EMAIL: info@2degreesmobile.co.nz

NonprayingMantis

6434 posts

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#486930 28-Jun-2011 15:08

2degrees: 2degrees has become a $100m business in just 18 months. Our performance to date is in line with our business plan and we have solid shareholder support in winning a bigger share of the NZ mobile market. Thanks to all of our customers for their support!

Congratulations. You won’t be needing any further help from the regulator then since you are doing so well already.

ajw

1840 posts

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#487056 28-Jun-2011 18:32

Good on them. Other Telcos have been ripping the system off for years and getting away with it.

richms

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#487061 28-Jun-2011 18:51

Will only be a problem if they become like woosh and never turn it around ;)

Richard rich.ms

NonprayingMantis

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#487065 28-Jun-2011 19:04

richms: Will only be a problem if they become like woosh and never turn it around ;)

never say never

http://www.geekzone.co.nz/forums.asp?forumid=41&topicid=73548

richms

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#487077 28-Jun-2011 19:30

NonprayingMantis:
richms: Will only be a problem if they become like woosh and never turn it around ;)

never say never

http://www.geekzone.co.nz/forums.asp?forumid=41&topicid=73548

Ah well. Would be happy to be proved wrong, but really I dont give a crap about them, vs 2 degrees who I want to see succeed ;)

Richard rich.ms

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