Sharechat Logo

Woosh on a star as network takes hit

Wednesday 7th April 2010

Text too small?

Broadband provider Woosh Wireless has written down its network assets value by up to 70% as it looks for new technologies to provide a springboard for future growth.

The privately-owned company announced a $38.26 million loss for the year, according to the company’s financial statements ended June 30 and lodged with the Companies’ Office last week, after it took an impairment loss on its books of $34.34 million.

“Woosh had a year where the business was stabilised, costs were cut and cash flows carefully managed, so that a positive operating cash flow was achieved in the last quarter of the 2008/2009 financial year,” chairman Rod Inglis said.

“In that quarter the company was EBITDA positive before unrealised exchange movement by $188,000 and it has maintained a modestly positive cash flow performance, month on month, in the 2009/2010 financial year.”

Though its network assets, mainly cell towers, have been written down to represent the returns they are generating, Inglis said their value could be increased in the future with a WiMAX or 4G wireless deployment.

“Woosh has developed detailed plans for a WiMAX build and believes that these are very complementary to the Government’s Ultra Fast Broadband and Rural Broadband Initiative where it is planned that it will invest $1.8 billion,” he said.

Still, the company entered the wireless broadband business “too early, the industry is gathering momentum all the time,” said Inglis. “Woosh believes it will be able to participate profitably in this growth.”

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Fletcher Building Announces Director Appointment
Meridian issues new demand response exercise notice to NZAS
CRP - Chatham Closes Private Placement of Shares
General Finance - Olympic Term Deposit Promotion featuring a Special Bonus of 0.1%
July 22nd Morning Report
VCT - Operational performance for the year ended 30 June 2024
Challenge to banks the way to go
Bigger returns or lower risk?
NPH - Director Appointment
July 19th Morning Report