1worldspace Cuts Spending In Second Quarter
[Satellite Today 08-15-08] Second quarter results for 1worldspace saw revenues of approximately $3.3 million, a slight increase over revenues of approximately $3.0 million for the first quarter of 2008 and a net loss of $36.0 million. The company cut operating expenses by 26.5 percent from the same period last year.
1worldspace, which is the new name of Worldspace ever since the company rebranded July 2008, ended its second quarter with 171,657 subscribers worldwide, a slight increase despite the cessation of marketing efforts in India, where the company gained 2,283 net subscribers.
The company also announced that it was ahead in its efforts to launch mobile services in Europe in 2009 and to raise additional funding.
Highlights of the quarter include: WorldSpace Europe, a majority-owned subsidiary of 1worldspace, receiving approval from Germany’s Federal Network Agency, the Bundesnetzagentur, for the operation of a terrestrial repeater network in Germany, an agreement with STMicroelectronics for the development, manufacture and distribution of chips for the 1worldspace mobile receiver for the European aftermarket and the securing of $20 million of subordinated financing from Yenura Pte Ltd., a company controlled by Noah Samara, chairman and CEO of 1worldspace.
According to the company, approximately $18.5 million of the funding was used to meet financing terms reached with its investors on Jul. 25, leaving approximately $1.5 million to make certain payments owed to vendors and other persons.