Access Providers records loss despite revenues up

ASX -isted wireless telecommunications company Access Providers announced total revenues of $4 million for the half year ending 31st December 2005 - a 122 percent year on year increase.

However this gain was offset by a loss of $280,000 resulting from one-off abnormal costs, the company attributes to the acquisition of Saise. The company’s gross profit increased from $1.5 million to $1.7 million, its expenses also went up from $0.83 million to $2.1 million (due to abnormal costs). There was also a surge in customers from wholesale, indirect and direct segments of 31 per cent.

Access Providers chief executive officer Keith Ondarchie said the acquisition of Melbourne ISP Saise had resulted in the revenue increase for the first half of the year.

“The fall in net profits is disappointing," he said. "However the loss is a result of one-off costs associated with the acquisition and integration of Saise.”

Ondarchie attributed the company’s cost increase to staff exits, relocation costs associated with the move of Saise and Access Providers into its new Melbourne CBD headquarters, write-offs of bad debts and its associated legal fees as well as infrastructure costs associated with the development of the its VoIP and product and WiMAX network in Sydney.

Access Providers is also investing in building its infrastructure and enhancing its networks. The company has started to acquire sites in Sydney to install its WiMAX infrastructure, through the channel. According to Ondarchie it aims to have Sydney customers connected to services by June.

Access Providers shares were on hold today. They last traded at $0.21.