Woosh posts $18.9m loss

Woosh Wireless racked up an annual loss of $18.9 million on sales revenues of $5.9 million as it laid down its costly challenge to Telecom and expanded its wireless broadband network.

The result, for the year to June, compares with a loss of $9.5 million and sales of $4.3 million the previous year, The Dominion Post reported today.

It takes the running total of Woosh's losses to $49.8 million.

Chief executive Bob Smith says Woosh's finances are on track with the company's business plan and the accounts need to be read "like you'd think about a company developing a major network, such as Sky TV".

Woosh ended its financial year with net equity of $68 million and more than $40 million in the bank after raising an additional $62.4 million from shareholders, adding to the $57 million it raised previously.

The backers of the high-profile junior telco include private and venture capital investors in New Zealand, Bahrain and the US and even state-owned enterprise ACC which took a $1.6 million stake in the firm in August. Vodafone has an option which expires in September to buy 20 per cent of the company for $30 million.

Woosh's sales revenues in 2004 comprised the first nine months' revenue from its TD-CDMA wireless broadband network plus a contribution from its predecessor Walker Wireless' network which uses public spectrum. The latter is no longer being actively marketed.

Interest income on the money Woosh has in the bank helped push total revenues for the year to $6.4 million.

Woosh's broadband network covers much of Auckland, the central business districts of Wellington and Christchurch, and parts of Southland.

- NZPA