TORONTO and MONTREAL – Fixed wireless company Look Communications reported lower revenue but positive EBITDA during the first two quarters of fiscal 2006.
Revenue for the quarter and first half of the year was $7.9 million and $16.2 million, respectively, compared with $9.7 million and $19.7 million a year ago. Gross margin was $4.7 million and $9 million for the three and six month periods ended February 28, 2006 compared with gross margin of $4.9 million and $9.6 million in the periods in 2005. The decline in revenue was the result of a lower subscriber base while the improved margins were driven by continuing reductions to Look’s telecommunications costs and programming fees, says the release.
The release did not say how many Internet or TV subscribers the company has.
EBITDA for the three months ended February 28, 2006 was $212,000 compared to a negative EBITDA of $88,000 in Q2 ’05. For the six months ended February 28, 2006, EBITDA was $552,000 compared with a negative EBITDA in 2005 of $1.2 million. The positive improvement of $1.8 million is primarily attributable to lower marketing activity and the continuing restructuring of the company, said the press release.
The Q2 net loss was $1.4 million, better than ’05’s net loss of $2.5 million. The net loss for the six month period declined from $5.5 million to $2.8 million.
"We are pleased with our restructuring efforts that have allowed us to focus on the development of our M3 network. Mobile Multi Media developments around the world related to Mobile TV are developing quickly and we continue to be even more convinced that our M3 – Mobile Multi Media strategy is exactly what customers want to have available for their convenience. During April, we launched our mobile TV demonstration sites in Milton and are very excited about the results," said Gerry McGoey, vice-chairman and CEO of Look.
The Company continues to have discussions with potential financial partners, distributor partners and supplier partners for the build out of the M3 network.
Look Communications’ mission is now to be a mobile multimedia entertainment and information service provider in Ontario and Québec. The company is developing the network and currently delivers a full range of communications services, including high-speed and dial-up Internet access, web applications, and digital television distribution to both the business and residential markets.
