USKO, the JSE-listed IT focused group, announced yesterday that one of its divisions, Global Internet Access (GIA), has made a remarkable financial turn-about.
Paul Wootten, Executive Director of USKO commented, "We are delighted to announce that GIA, one of SA`s leading Internet Service Providers and part of our communications` division, joins the elite group of ISP`s that is trading profitably in South Africa and the world.
"Audited financials not only show that GIA turned the corner in June, but also reveal a consistent growth pattern that is not merely a flash in the pan. When USKO acquired GIA in March this year, the company`s focus was moved to the corporate and professional Internet market sector, so we only expected returns in the medium to long term. GIA has surprised us all by an amazing 15% monthly compounded revenue growth in this area over the past six months, as well as maintaining its growth in the dial-up consumer market.
John Tollemache, MD of GIA commented on the financial turn-about, "Few Internet Service Provider are making money due to the massive start-up costs before profits are reaped. According to published media articles, there is only one other ISP of this magnitude operating profitably in South Africa and a handful in the world.
"The acquisition of GIA by USKO earlier this year and the subsequent restructuring, integration and leveraging across the group provided us with the capability of expanding our corporate base and delivering a superior suite of value-added Internet solutions.
In response to the impact on USKO`s earnings, Wootten commented, "GIA`s financial turn-around is unlikely to impact on the group`s profit forecast at the end of September, but it is expected that GIA will contribute in a meaningful way during the course of 1999."
In a speech to GIA`s 180 staff, Wootten heralded GIA as one of the most technically advanced ISP`s in South Africa and core to USKO`s group strategy and expansion plans.
"GIA`s technical team runs a network of unparalleled reliability with the most stable connectivity and state-of-the-art equipment. The company has consistently maintained a capacity of at least 10% above customers` peak demands. So much so, that they guarantee to give customers free access if they unable to establish a connection when they dial in.
"GIA`s network is probably the best kept secret in the industry - the company has 10,5 megabytes of international bandwidth; 600 router ports under management; and handles over 65 000 log ins per day, 50 000 mail boxes with over 3 gigabytes of mail processed daily. GIA has over 30 000 dial-up paying customers and over 200 corporate clients", added Wootten.
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