Hi Belly,The press release also said that pro-forma revenue for...

Hi Belly,

The press release also said that pro-forma revenue for the merged business was $72.9M in FY04, with the former SWT accounting for $16.2M of that figure. People, therefore, generated revenue of $56.7M in FY04. This means that People generated H2 revenue of $29.9M vs H1 revenue of $26.8M and FY03 revenue of $42.2M.

In FY03, the former SWT generated revenue of $4.0M and H1 revenue of $5.8M. In H2, the former SWT generated $10.4M in revenue.

In FY05, PEO is targetting $100M in revenue, for a YoY increase (over pro-forma) of 37%. However, in FY03, the former SWT actually increased its revenue by 300%, whilst People increased revenue by 34.4%.

So, all things being equal, one could easily conclude the following:
1)
in FY05, the former SWT will increase its relative contribution to the overall revenue line;
2)
FY05 growth is only marginally ahead of People's own FY04 rate of growth;
3)
People seems to be de-celerating whilst the former SWT is accelerating.

On this basis, voice (etc) is flattening in line with the wider industry (ditto, voice margins) whilst broadband is increasing (query, however, the margins).

Somehow though, I still cannot shake the feeling that this entire exercise has favoured the People vendors by a significant margin.