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Pipex turnover up but profit down
Wednesday 18 April 2007 18:48:09 by John Hunt

The Pipex end of year results, released yesterday, for 2006 show interesting figures for the group following a spate of acquisitions and ventures. Profit before tax was down to £4.8m from £5.1m in 2005 with turnover rising by 121% to £294m from £133m.

Broadband subscribers were reported at 570,000, a 101% increase over 283,000 in 2005. The acquisition of Homecall has helped by boosting multiple service delivery where customers take, for example, a phone line with their broadband service. This has helped raise average revenue per customer to £24.70pcm from £23.00. Local Loop Unbundling rollout has not been extensive. Investment of £5.8m has seen 59 exchanges completed by the end of 2006 and another 41 are due by the end of April. A further 75 are to be installed by 2008. Tighter integration of systems following the acquisitions of Bulldog, Toucan and Homecall should help introduce cost savings by avoiding the replication of functions across the group.

WiMAX trials in Stratford-upon-Avon have shown the potential to deliver 'up to 8Mbps' of synchronous bandwidth (i.e. for both downstream and upstream) with the coverage expected to be up to around 5 km from the exchange. This sounds similar to current DSL rollouts in the UK. It does offer some improvements as the 5 km is 'as the crow flies' rather than physical cable length, and the increased upstream bandwidth may be beneficial to business customers. 50 towns and cities are expected to have the service by 2009, with Manchester the first to go live at the end of the year.

The group also pointed out that the strategic review, being conducted by UBS, proceeds to the board's satisfaction despite recent speculative press coverage. BT are the only known bidder reported to still be in the running for a possible acquisition, although a break up of the group could also be a possibility involving the sale of just the broadband customer base or perhaps the WiMAX service.


Posted by CARPETBURN over 10 years ago
LOL so unless i read this wrong they expect us to believe the company has more money coming in from increase in customers, but profits were not as good because they expect us to believe they have been spending money on "acquisitions and ventures"... LOL shouldnt that improve the services rather then make them worse???
Good old Pipex, i dont know where they get their abacuses from to work out figures... first the mythical heavy user gigabyte figures and now this LOL why any company would still consider buying them is beyond me.
Posted by Shrek59 over 10 years ago
I was with Pipex-Homecall combined service until a few months ago. Their reliability was terrible.

Despite the law change, it still took a month and OFCOMs intervention to obtain a MAC from them.

Pipex phones me every every evening to tell me to pay the bills they are still sending and have told me they have put a bar on all outgoing phone calls, that they don't provide, from my line.

Pipex deserve to go under and if there is any way I can help it along in that direction, I'll do it.
Posted by BadPeter40 over 10 years ago
I was happy with my 2mbps service with Pipex. Then they unbundled my line, resulting in 6 weeks of chaos and endless calls to tech support. I voted with my feet.

3 months after I migrated I received a paper bill from Pipex. More than a dozen phone calls later they still claimed the cancellation of my account was 'pending' and I owed them £100.

Today, 6 months after leaving Pipex, I finally managed to get an e-mail from them confirming that I am an ex-customer and don't owe them any money. What a shambles. Avoid!

Posted by squeak1963 over 10 years ago
still stuck with pipex,was getting 2meg. upgraded to upto 8meg 7mnths ago and now getting a fantastic speed of 976kbps going backwards and paying more? use 01614511000 instead of 0870 number
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