'Challenging year' sees Woosh raise more capital

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Wireless provider records a 77% increase in revenue and a reduced operating loss of $8.8 million in 2007

By Rob O'Neill | Auckland | Friday, 22 February, 2008

Wireless broadband provider Woosh recorded a reduced operating loss of $8.8 million for the year to 30 June 2007 and has secured fresh capital from investors.

Woosh chairman Rod Inglis confirmed today a capital raising in early December had secured further funding for 2008.

In 2006, Woosh had operating revenues of $10.4 milllion, an operating loss of $11 million and a bottom-line loss of $24 million. In 2007 Woosh recorded revenues up 77% to $17.8 million, an operating loss of $8.8 million and a total loss of just over $20 million.

In January, NBR reported Woosh was pursuing partnerships with other providers. Chief executive Kevin Wiley said discussions had reveled common interests with several parties, including CallPlus.

“We are approaching our goal of breaking even but the market has made it a very challenging year,” Inglis says in a statement released today. “There was a great deal of uncertainty in the market but we were able to consolidate our position.

“We continue to quietly build our customer and network base. That, coupled with close management of costs, meant we were able to boost revenue by 77% and reduce our EBITDA loss by 30%.”

Inglis says Woosh will maintain a tight rein on costs in the coming year, including a sinking lid policy on staff levels. It is currently planning for a Wimax platform for the 2.3MHz spectrum it secured late last year.

“We believe the company can gradually work towards a break even position so that new money will be efficiently applied to a WiMax deployment and overlay onto our existing network," he says.