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NetServices Shares Tumble

Posted: 06th Sep, 2006 By: MarkJ
ISP supplier NetServices has warned of higher than expected full-year losses, which subsequently caused its share price to tumble to just 10% of its highest value:

Despite this apparently gloomy situation, company spokeswoman Maria Goggin insisted that NetServices was on track.

"Our strategy has always been to move away from the broadband side of things," she told us. "We have a range of other services - wide area networking, hosting and a voice offering, that we are focused on instead. That has always been our strategy." She couldn't say how much of the company's revenue came from these other offerings.

Goggin denied reports that the company was planning to sell its wholesale broadband operation, and tried to allay concerns that it had been caught napping by "free" broadband offerings from the likes of Carphone Warehouse and Sky, saying the market had moved a lot for everyone in the last year.


The Register reports that NetServices is expecting the hype surrounding free broadband services to calm down over the coming two months. In reality it ‘might’ slow slightly, yet future quad-play promotions are likely to reignite the problem.
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