2degrees posts loss for FY2010, but revenue up

Revenue quadruples compared to 2009, but loss widens

2Degrees mobile has reported an after-tax loss of $76.8 million for the year to December 2010, compared with a $51.7 million loss last year.

Revenue was up substantially however, with the company earning $107.6 million, compared with $27.3 million last year.

Under “statement of accounting policies” in the results, it is noted: “The Company is a start-up entity and has been funded through equity contributions to date.

“It is expected that the company will require additional funds through further equity issuance and other indebtedness.

“The two largest shareholders of the company have provided assurance that, if required, they will provide such financing to support the company and group to continue in operational existence for the foreseeable future.

“The foreseeable future is to be taken as a period of not less than 12 months from the date of signing of the financial statements.”

Notes to the results note that the mobile operator is in dispute with “a business counterparty” regarding interconnection fees. The counterparty isn’t named.

The report notes: “Management is conducting enquiries as to the substance of the claims made and potential financial impact of the dispute.

“At the time of finalisation of the financial statements, those enquiries had not been completed and an estimate of the expected financial effect of the dispute could not be made.

“It is expected that the dispute will be resolved in the second quarter of 2011.”

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