Media Centre
Uecomm Sells Residential Dial-Up ISP
The Chief Executive Officer of Uecomm Limited, Peter McGrath, today announced the sale of UNITE, its residential dial-up Internet service provider (ISP) business to DoDo Internet. The completion of the sale process was dependent upon the successful migration of the UNITE customers to DoDo Internet. The migration has now been completed.
Mr McGrath said that proceeds from the sale include approximately $440,000 (excluding GST) for the customer base, and a further $300,000 (excluding GST) approximately from the sale of related assets and equipment to unrelated third parties.
Total losses for UNITE for 2001 amounted to approximately $6.1 million. This loss is comprised of $4.4 million in operating losses for the 11 months to November 2001 and branding costs of $1.7 million, which were written off in the first half of 2001. In addition, asset write offs relating to the UNITE business will total $2.7 million.
The sale marks further progress in Uecomm's operational restructure, and will result in operational savings of at least $4.0 million per annum, Mr McGrath said.
"The sale of the ISP business represents the final stage in Uecomm's shift away from activities in the residential market.
"This market sector is characterised by extremely tough competition and reducing margins. Uecomm made a strategic decision earlier in the year to focus its sales and service efforts on the corporate, government and wholesale sectors, where the company can better leverage its expertise and attract high quality business. The sale of the dial-up ISP marks the completion of this transition."
