net loss increased by 129% and revenue slid 30% as the company continues to face challenges to its business model.
April 30 (Lagos) - Starcomms Plc, the leading CDMA mobile phone service provider declared annual results for 2011. Top line revenue decreased by 30% to N 20.16 billion in 2011 from N 29.03 billion in 2010. Operating costs increased to N 26.84 billion in 2011 from N 24.76 billion in 2010. Net loss for the year increased sharply to N 17.56 billion from N 7.66 billion in 2010.
Fixed assets decreased to N 32.30 billion in 2011 from N 43.39 billion in 2010. Company faces increasing competition from GSM providers as well as other CDMA operators such as Visafone. Company's internet business faces rising competition from GSM companies who also provide internet as well as independent internet service providers such as Swift, Cobranet etc.
As a result, the company continues to disappoint its shareholders with no dividend and negative growth. Shares of the company trade for 50 kobo per share at the Nigerian Stock Exchange in Lagos.
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