LONDON (Alliance News) - The People's Operator PLC on Monday reported a widened pretax loss for 2015 as increased investment offset a jump in revenue driven by an increased in subscribers.
The mobile virtual network operator said its pretax loss widened to GBP10.4 million in 2015 from GBP2.3 million in 2014, as a rise in revenue to GBP2.1 million from GBP432,391 was offset by a significant ramp up in administrative costs.
Additionally, People's Operator recorded GBP650,800 in exceptional administrative expenses related to the company's launch in the US during the year.
The company said it saw UK subscriber numbers increase to 69,000 at the end of 2015 compared to 14,000 at the end of 2014. This has increased to 80,489 as at the end of the first quarter of 2016.
The company launched its services in the US in July, and although it experienced a number of issues bringing new customers on board, mostly as a result for a need for software improvements within its partners systems, it has since fine-tuned and adapted its offerings. It had 21,000 subscribers in the US at the end of the first quarter of 2016.
"This was a solid year of growth for The People's Operator. Our subscriber numbers continue to rise, and we are seeing excellent traction following our launch in the US. Our large numbers of charity and good cause partnerships, coupled with our popular and active social platform, mean that we are gaining more and more subscribers attracted by our giving proposition. This proves the strength and viability of our model for viral growth allied with low marketing spend and firm cost control," said Executive Chairman Jimmy Wales in a statement.
"I remain very optimistic for our future in both the UK and the US," Wales added.
Shares in the People's Operator were down 14% at 30.20 pence Monday.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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