Thus losses grow

NEWS Shares in Thus were up 5.63 per cent this morning despite the telco reporting higher than expected losses in its fiscal first half. Thus blamed the widening losses on asset write-downs and higher interest payments. Its ISP division, Demon Internet, made £38m in the six month period, just two per cent up year on year. Its dial-up subscriber base fell, while its recent tie-up with Apple, which will see Demon become the exclusive ISP in Apple's internet set-up software, will not begin to bear fruit until the third quarter of this financial year. Its business internet offerings performed more strongly, with a 38 per cent year on year increase to £17.2m. ADSL subscriptions rose 49 per cent on the previous quarter to 2,700. Losses for the group as a whole - which encompasses domestic and business telecoms and data services - rose to £42.7m, or 6.3 pence per share, in the six months ending 30 September, compared with £23.3m or 3.5p in the same period a year earlier. Revenue jumped 36 per cent to £140.8m as the company added new customers including BT Ignite and Amstrad. Capital expenditure fell 50 per cent to £37.6m. Thus has set a profitability deadline for March 2005, but said existing funds will run out by 2003. The company is currently in talks with Scottish Power to raise an additional £80m to £100m.