Access Providers to open Sydney office

Melbourne-based wireless ISP Access Providers would open a Sydney office by June this year on the back of 122 percent revenue growth last calendar year.

The ASX-listed companmy reported total revenues of $4 million for the half year ending 31st December 2005, a 122 per cent increase compared $1.8 million revenues for the year ending 31st December 2004.

However this was offset by a loss of $283,000 resulting from one-off abnormal costs, the company attributes to the acquisition of Saise.

The company’s gross profit increased from $1.5 million to $1.7 million, its expenses also went up from $830,000 to $2.1 million (due to abnormal costs).

Wholesale, indirect and direct customer numbers grew 31 percent over the period.

"These are the best firgures we have had. The numbers for our previous customer increase has always been in the 20s.

"The reason we have had such an increase is because we shifted customers from third party network," said Access Providers CEO Keith Ondarchie.

He also said the Saise acquisition resulted in the increase in revenues for the first half of the year.

“The fall in net profits is disappointing. However the loss is a result of one-off costs associated with the acquisition and integration of Saise,” said Ondarchie.

The company’s costs increase was also attributed to staff exit costs, relocation costs associated with Saise and Access Providers into Melbourne CBD headquarters, writing off bad debts and associated legal fees as well as infrastructure costs associated with the development of the its VoIP and product and WiMAX network in Sydney.