re: atc looking good re announcement Hi LauraJust ignore what...

re: atc looking good re announcement Hi Laura

Just ignore what some posters have to say. Lets look at the FNT facts. This is what the BIG DEAL is REALLY ABOUT....

The FNT calling card system sells 30m minutes of traffic each MONTH. (source: FNT)

Each FNT card holder pays 30 pence per minute on the network. FNT is currently paying 20 pence per minute as a cost of that sale. Source: Bulletin Magazine 7/8/02). Also confirmed this with ATC recently.

ATC has its own carrier license in Britain plus contracts to take its traffic at ONLY 5 pence per minute.

What does this mean -:

FNT will add revenues of around $A300m to the ATC top line. (ie 30m minutes p.m. x say even 25 pence p.minute charged to card holders x 12 months x around .30 conversion rate) when ATC continues to charge FNT cardholders at least 25 pence per minute to its FNT subsidiary. This could be higher....

Stewarts estimate of $240m revenues is very conservative.


ATC will service that traffic at a gross profit of at least 15 pence per minute - minimum. ATC has the potential to earn around $A180m extra gross profit from the FNT traffic. (ie 30m minutes p.m. x 15 pence per minute x 12 months x around .30 conversion rate)

The FNT business will be merged with the ATC business. So ATC will enjoy the gross margin previously made by FNT as well.

When analysts get their calculators out. ATC will MOVE....