Telecom service provider, Tel.Pacific (ASX:TPC), expects a return to profit for the rest of the year, after swinging to a $368,000 loss in the first half.
In an update to shareholders the company, which operates pre-paid mobile calling card service Hello Mobile, said it expected to be able to more closely manage the losses from this business going forward.
Tel.Pacific's ebitda had also fallen 96.7 per cent to $83,000 in the first half as a result of investment in the Hello Mobile business.
Hello Mobile itself incurred a net loss of $2.7 million for the period, compared to $2 million in June 2010, and excluding these losses, profit would have grown 113 per cent to $1.5 million in 1H11.
But the company said mobile revenue grew threefold to $6.2 million during the period.
This brought its total revenue, including from interconnect and transit arrangements from the Mobile Real Time Monitoring intelligent network platform it acquired from Service Stream (ASX:SSM) last June, up 18 per cent to nearly $33 million.
To try to ensure a return to profit in the remainder of the year, the company said it plans to reduce its sales resources focused on the mobile market, but “ensure it is in a position to re-engage fully when market conditions are more favourable.”
TPC shares fell 5.88 per cent during Monday's trading to $0.080.