TORONTO and MONTREAL – "We have continued the successful restructuring of our existing operations. This is the second consecutive quarter and the eighth consecutive month that the company has been EBITDA positive," said Gerald T. McGoey, CEO of Look Communications, which announced its first quarter results late yesterday.
“By enhancing and simplifying our present fixed service offerings, we are also positioning the company to be able to offer our customers Mobile Multi Media services."
Revenue for the three months ended November 30, 2005 was $8.4 million and gross margin was $4.3 million. For the three months ended November 30, 2004, revenue was $10.1 million and gross margin was $4.7 million. The decline in revenue was the result of a lower subscriber base.
EBITDA (earnings before interest, financing charges, income taxes, depreciation and amortization) for the three months ended November 30, 2005 was $339,000 compared to a negative EBITDA of $1.1 million for the three months ended November 30, 2004. The change of $1.4 million is primarily attributable to the ongoing restructuring of the company, says the press release.
The net loss for the three months of 2005 was $1.3 million, or $0.01 per share, compared to a net loss of $3 million or $0.03 per share in the three months of 2004.
As at November 30, 2005, Look had 79,376 subscribers, compared to 86,586 subscribers at the end of August 31, 2005. Of the 7,212 reduction in subscribers, residential Internet dial-up accounted for more than 50%, a decline which was anticipated in light of the ongoing industry-wide migration to high-speed Internet.
