JSE-listed television equipment provider Ellies says its recent start-up broadband satellite provider, SkyeVine, has been slow in meeting its initial objectives.
However, its recent endeavour into SkyeVine, which provides satellite-based broadband for the home user and small enterprise markets, “has been slow to achieve its initial objectives”, the company says.
In July last year, Ellies said SkyeVine had started operating. The company has a 45% share in the venture with Q-Kon, which provides Internet satellite connectivity within sub-Saharan Africa.
CEO Wayne Samson says the company thought the product would be taken up straight away, but many customers wanted to trial it first for a few months.
Samson says the company is taking a “conservative approach” towards the unit. Last July, Ellies said it would continue to invest in SkyeVine and returns would reflect in “the coming years”.
However, despite the unit's slow start, Samson says the company's order book is healthy, and it is moving into new product areas such as renewable energy, which will aid growth.
In addition, says Samson, the business is ready to supply set-top boxes when digital television is turned on later this year.
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