A combination of increased subscribers, corporate users and the ability to make money from customers calls, has helped European Internet Service Provider, Easynet post its first ever profit.
Retrained profit for its fiscal year ended 31 December 1998, was #112,000, compared to a loss of #1.2 million the previous year. Turnover leapt 128 per cent to #17 million.
The phenomenal success of Dixons Freeserve hasn?t hit Easynet?s dial up business yet as it almost doubled its subscriber base to 60,450 from 30,500. Revenue from the dial up business jumped 107 per cent to #5.8 million.
Revenue for the corporate sector rose almost 143 per cent from #4.6 million in 1997, to #11.2 million last year. With more than 5,000 corporate customers, Easynet said this sector now accounts for around 65 per cent of the group?s revenue.
In its interim results the company posted losses of #720,000, however it gained another source of income through a deal with BT in June to allow it to terminate all its customers' calls.
Easynet, which won the prize for best European ISP at the Internet Service Providers Association awards this week, said it will increase this capability in the UK and will also begin handling data traffic elsewhere in Europe.
Easynet?s chairman David Rowe said, ?1998 has been a landmark year for the company with a move into profitability in the second half of the year on the back of growing revenues. The corporate and consumer sectors have performed extremely well and the move into telecommunications to strengthen our company?s network has proved very successful, underpinning the Internet dial product in the UK by generating a revenue stream from call minutes.?
Easynet also invested heavily to expand its Internet infrastructure during 1998 and said this will continue throughout 1999 to bring a wider range of services to European businesses and consumers.
On the success of these results the company also announced it will apply to be delisted from the Alternative Investment Market (AIM) and instead be listed on the main market of the London Stock Exchange (LSE).
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