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Eisa cops $13m loss

Eisa cops $13m loss

Internet service provider Eisa on Friday reported provisional unaudited results for the year to December 31, showing a loss before tax in the order of $13 million.

The greater than forecast loss was attributed to "increased marketing and customer service costs as well as lower than anticipated sales of its Eisa PC product".

In a statement to the ASX, Eisa advised it will enhance the range of its bundled Internet products but will reduce its reliance on the Eisa PC product. The statement goes on to say that "overall, bundled PC products will become a less important business line and Internet access, content and e-commerce will become more significant".

Referring to "aggressively rolling out its Internet backbone and extending its geographic coverage in the first half of this year", the statement also said that "marketing emphasis in both the retail consumer and corporate sectors will complement the network expansion".

While defending its PC bundled deal last week (ARN, January 26, page 1) Eisa managing director Damien Brady hinted that it may look to other PC suppliers and boost its subscriber numbers through acquisition. "I am confident that a combination of organic growth and acquisitions will deliver the returns our shareholders expect", Brady said.


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