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Engin slashes 1H11 losses

Engin slashes 1H11 losses

VoIP and DSL provider Engin (ASX:ENG) narrowed its losses significantly to $111,000 in 1H11, as a result of decreased depreciation and amortisation expenses.

The company, which had reported a loss of $2.6 million in 1H10, said the expenses had decreased by $2.8 million during the half-year.

Revenue also grew 4.3% to $11 million, while ebitda declined to breakeven point, in a result attributed to increased marketing spending on customer acquisition and retention.

Sales and marketing spend indeed almost doubled to $800,000, but services in operation grew by 15% during the half to 77,000 as a result.

Engin also ended the quarter with some 5,000 broadband subscribers – up 150%.

The company said growth was impacted by the effects of an industry-wide decrease in average revenue per user (ARPU) from fixed-line residential voice subscribers.

As a result, margins also decreased to 58%, from 62% in 1H10.

Engin said it expects to trade at a positive ebitda and profit for the remainder of the year.

ENG shares stayed flat on Wednesday at $0.500.

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Tags voipfinancial resultsenginASX:ENG

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