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Macquarie Corporate Telecommunications is saying that earnings from its
online and data services business will be delayed for some time as a prolonged
weakness in the Australian business sector cuts sales.
The embattled telecom yesterday reported a net loss of $11 million for the
six months to December 31, a $10 million writedown against the carrying value of
its data-hosting facility in central Sydney savaging the bottom line.
The loss was almost three times as much as the $2.82 million after-tax loss
recorded in the December 2000 half.
Revenue grew by 7.8 per cent to $121.6 million.
Macquarie Telecom chairman John Priest said the company had taken a
conservative approach to the value of its data centre to prepare for the
slowdown in corporate sales.
Mr Priest's comments gel with public statements from major rivals such as
Optus and Telstra, both of which unveiled sales declines in their business and
data services divisions in the December half.
Telstra said last week that its data and Internet services business unit
experienced a 4 per cent slide in revenue as aggressive cost cutting by new
entrants and a general decline in demand hurt the sector.
Macquarie said its data services division lifted revenue by 33.8 per cent to
$13.4 million for the half but further growth would be hard to sustain.
``Given the persistent weakness across the entire sector, the board believes
the returns the company originally expected in online and data services will be
pushed out further into the future," Mr Priest said.
Macquarie Telecom's traditional voice services generated revenue of $94.2
million, down 6 per cent from the previous corresponding period, from its 1650
corporate customers. The slip was blamed on intense price competition.
Shares in Macquarie Telecommunications ended unchanged at 12c yesterday.
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