Telecom service provider Tel.Pacific (ASX:TPC) expects a return to profit for the rest of the year, after swinging to a $368,000 loss in the first half.
In an update to shareholders the company, which operates pre-paid mobile calling card service Hello Mobile, said it expected to be able to more closely manage the losses from this business going forward.
Tel.Pacific's ebitda had also fallen 96.7% to $83,000 in the first half as a result of investment in the Hello Mobile business.
Hello Mobile itself incurred a net loss of $2.7 million for the period, compared to $2 million in June 2010, and excluding these losses, profit would have grown 113% to $1.5 million in 1H11.
But the company said mobile revenue grew threefold to $6.2 million during the period.
This brought its total revenue, including from interconnect and transit arrangements from the Mobile Real Time Monitoring intelligent network platform it acquired from Service Stream (ASX:SSM) last June, up 18% to nearly $33 million.
To try to ensure a return to profit in the remainder of the year, the company said it plans to reduce its sales resources focused on the mobile market, but “ensure it is in a position to re-engage fully when market conditions are more favourable.”
TPC shares fell 5.88% during Monday's trading to $0.080.