Eftel loss widens on restructure costs

ISP Eftel said its 1H loss grew 29.9 per cent to $1.3m, on declining revenue and restructuring costs, but revealed it had slashed operating expenses

ISP Eftel (ASX:EFT) has reported a 29.9 per cent wider 1H net loss of $1.3 million.

Revenue fell 16 per cent to $15.4 million, and the company booked restructure costs of $525,000.

But Eftel said in a statement that the restructuring costs had been put to good use - the company has reduced operating expenses substantially through simplifying the business.

The company's profit from retail services declined from $6.8 million to $6.1 million, and corporate sales nearly halved, but wholesale revenue increased.

Eftel has since acquired Melbourne Based retail ISP Rabbit Internet for $123,000, and Colour City Internet for around $15,000 – approximately one month's revenue for the purchased company.

Eftel said it was in discussions to sell its Multi-service Access Node (MSAN) network, and had appointed PriceWaterHouse Coopers to act as advisors.

Post-election changes to the NBN rollout roadmap have extended the useful life of the network assets, increasing its potential value, it added.

EFT shares were flat on Tuesday at $0.014.

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