UK telecomms supplier Energis reduced its first half losses by more than half and said it was "firmly on course to be earnings positive" at the end of the next fiscal year.
Mike Grabiner, chief executive of the fledgling challenger to BT, said the company should make pre-tax profits within 18 months. "Energis is maintaining strong growth despite the increasingly competitive nature of the business telecommunications market," he said. "The combination of strong revenue growth in high margin services, tight cost control and an excellent current order book" would achieve the planned profit by the end of the 1997-98 fiscal year.
Half year revenues increased by 174 per cent to #43 million, compared to the same period last year, and these revenues are greater than those achieved in the whole of the 1995-96 fiscal year. The pre-tax loss was cut by 58 per cent to #11.1 million, while operating loss (after depreciation) fell 24 per cent to #30.3 million.
Energis' fibre optic network, which runs along the infrastructure of its parent National Grid, is now routing three million calls a day, 50 per cent more than six months ago. It claims to offer its 28,000 customer sites in the UK prices 10 per cent below BT's best discounted rates for national calls, and greater savings on international calls. Energis recently reduced its direct dial call rate to the US to 10p per minute, in a move designed to win market share in international business calls before the DTI grants its new tranche of international telecomms licences.
Grabiner also said the Internet service provider market was a key one for Energis' future growth. The company currently routes over 60 per cent of the UK's Internet traffic and has 30 national ISPs as customers.
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