Woosh made a $24m loss on operating revenue of just $10.4m. Operating revenue (which is net sales) was actually down slightly on the previous year, while EBITDA was $12m. Clearly some interest and depreciation in there, which they say is related to network investment.
Despite a claim that it will break even this year, these are lousy numbers – expenses are double the income, income is falling and meanwhile there is a whole bunch of capital being spent. Shareholders should be looking pretty hard at the business case for continuing, and remembering that price advantages will be eroded as the telcos wake up to the potential of IP via cell-phone.
For all that I’m glad Woosh is around – it’s a great service if you stay in the city centers.
