London, UK - Speaking yesterday at the Annual General Meeting of Easynet Group Plc (LSE:ESY), ("Easynet" or "the Company”), the pan-European Broadband networking company, the Chairman, Keith Todd, said:
“As a result of our continued strong progress we are moving forward our guidance for when we expect to turn cash flow positive (based on our current investment plan), to during the second quarter of 2005. In addition, we expect the Company as a whole to turn EBIT positive by the end of 2005, and our U.K. business to turn EBIT positive during the first quarter of 2005, supported by the Company’s strong balance sheet.”
“The Company continued to perform well during the first quarter. We won significant contracts from Ideal Group, Hill Mc Glynn and Elan Pharma, all of which include connecting offices or retail outlets to our high speed managed pan European broadband network. Additionally our Continental European business achieved positive EBITDA as planned.”
“In the public sector in the U.K. we have also started to win contracts as part of the framework agreement signed earlier in the year with the DTI. Among those were “ADIT North East”, for disaster recovery and high speed national backhaul services, and Slough Borough Council, to connect 49 schools and colleges with very high speed bandwidth capabilities. Our ongoing Local Loop Unbundling program with associated unique high bandwidth products continues to create opportunities for the business.”
“The year has started well with continuing strong growth whilst maintaining high gross margins, giving the board confidence in achieving its accelerated targets for cash flow generation and EBIT profitability.”