FNT fiasco, page-32

Grant

What do you make of the announcement made at 4:01pm today? I have copied it below for those who have not read it as yet.

My take on it is that China will (on its own) increase EPS by 5.5c per share. My numbers are calcultaed as follows:

Increase in gross margin per call is 18c (2c increased to 20c base rate)
Average China traffic per month 4 million minutes
Shares on issue 156 million

Therefore, 18c x 4m x 12 months = $8.64m GM

8.64m/156m = 5.5c per share

And to think, this does not include FNT. I wonder where it will go from here???

Extracted from ASX site:

Document date: Wed 06 Nov 2002 Published: Wed 06 Nov 2002 16:09:40
Document No: 227254 Document part: A
Market Flag: Y
Classification: Progress Report
ADVANTAGE TELECOMMUNICATIONS LIMITED 2002-11-06 ASX-SIGNAL-G

HOMEX - Perth

+++++++++++++++++++++++++
ADVANTEL CHINA GATEWAY NETWORK FULLY OPERATIONAL

Advantage Telecommunications Limited (ASX: ATC) announced that it has
received confirmation from the Chinese telecommunications authorities
that the international base call rate for China has been increased
from circa US$0.02 to circa US$0.20 with effect from the 1st November
2002.

AdvanTel carried approximately 4m minutes of international traffic to
China in the month of October 2002. Assuming no growth during
November, the same traffic should generate a commensurate increase in
revenue at equivalent percentage margins. The company does not
anticipate a material change in traffic as a result of the rate
increase.

Mark Stewart, Chief Executive Officer, AdvanTel said, "AdvanTel
anticipated this news and now has contracts with all the Chinese
state telecommunications company's for fixed and mobile calls".

He continued, "The AdvanTel network is ready to carry this traffic
today. The hard work has already been done."

The rate increase for China telecommunications traffic follows a
similar increase by the Vietnam authorities in the month of
September.

AdvanTel has built a Eurasian business with access into both the
Chinese, Vietnam and other Asian markets. The company's announced
expansion into the US market further enhances the company's ability
to send high volumes of traffic to these profitable destinations.

AdvanTel's revenue for October was US$1.2m up 42% on the previous
month of September revenue. Q1 revenues were US$2.3m. Annual revenues
for July 2001 to June 2002 were US$2m.

For further information please contact:

Mark J Stewart
CHIEF EXECUTIVE OFFICER
[email protected]
0011 44 207 464 4430

ABOUT ADVANTAGE TELECOMMUNICATION LTD (ADVANTEL) (ASX: ATC)

See website: www.advantel.com.au

ABOUT FIRST NATIONAL TELECOMMUNICATIONS GROUP

First National Telecommunications Group (FNT) has established its
position as the leading Prepaid Calling Card operator in the UK
market over the last five years. FNT has expanded its distribution
network to 30,000 retails outlets throughout the UK and has achieved
over 30% market share. FNT owns and operates a state-of-the-art,
award-winning UK Call Centre to provide the premium levels of
customer service to its expanding consumer base of several million
users. See website: www.fntele.com