20th Nov 2015 14:17
LONDON (Alliance News) - The People's Operator PLC Friday warned that its revenue for 2015 will miss market forecasts due to some difficulties it has had in meeting customer demands for registrations in the US, and said it has inked heads of terms to launch on the T-Mobile International AG network in the US by the end of March 2016.
In a statement ahead of the mobile network operator's annual general meeting the company highlighted some issues it has had since launching its US operations in July; notably that it has been "encountering difficulties" in satisfying some customer's demands for registrations.
The company said it is confident that the main issues have been identified, and a process of software updates to fix them is well underway. However, given its issues with completing registrations, it has been more cautious in commencing some marketing efforts, and as a result current subscriber numbers in the US are lower than expected.
It will launch a US-wide marketing campaign in early December, and said it expects to report results of this campaign around mid-December, when it will be able to give guidance for its subscriber expectations for 2016. The level of revenue shortfall "remains dependant on activity levels between now and the year end", The People's Operator said.
Elsewhere, the company said that its UK business continued to perform in line with expectations, and it is confident of beating its year-end target of 69,000 subscribers in the UK.
The company's new deal with T-Mobile will be in addition to its existing contract with Sprint Corp, and expands its potential customer base to the full range of 355.4 million users in the US. It expects the deal to have a "materially positive affect" on its ability to attract new customers during the course of 2016 and beyond.
This deal helps bolster the company's confidence of "significant near term growth" in the US, it said.
Shares in The People's Operator were untraded Friday afternoon. It last closed at 106.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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