Woosh reports small profit after large losses

While profit recorded, company remains in negative equity

Wireless broadband company Woosh Wireless has pulled out of a financial nose-dive, posting a small profit of $1.3 million after previously burning through $180 million of shareholders' cash. The reversal in fortune was helped by the fact the company had already written off almost all the value of its network, which it uses to provide a wireless broadband and phone service in the three main centres and in Southland. Rather than incurring a big depreciation charge, Woosh instead upped the estimated market value of its network of transmission towers by $1.1m. It said the network would be more valuable than previously calculated to any company that wanted to use the towers to build a 4G mobile network. Revenues rose 7 per cent to $18m, but the company remains in negative equity to the tune of $11.1m and indebted to its shareholders. Woosh is competing in a consortium with state-owned enterprise Kordia and Wellington firm FX Network for a $285m government contract to upgrade rural broadband.

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