Toronto, - Look Communications Inc. posted a larger loss in the third quarter as the line-of-sight wireless firm lost subscribers and spent more on advertising.
The loss was $952,000 or four cents a share, reflecting mainly the amortization of capital assets totalling $1.4 million. That compared with a loss of $103,091 or 88 cents a year earlier, when the company had far fewer shares before a major restructuring.
Revenues for the quarter ended Sept. 30 were $13.2 million, compared with $16.9 million for the same period in 2001.
For the first nine months of 2002, revenues were $43.9 million, down from $58.9 million. The net loss was $1.1 million or five cents a share, compared with a profit of $11.1 million or nine cents a share for the first nine months of 2001, which included an after-tax gain of $146.4 million from the sale of assets.
"We believe, based on the many promotional and marketing initiatives launched at the end of the third quarter and currently underway, that we are making headway in increasing the pace of subscriber additions," said chief executive Paul Lamontagne.
"That is the challenge for us this year, following the major restructuring we went through and almost 18 months of inactivity on the sales and marketing fronts,"
The formerly insolvent company said it is launching several services to lure back customers. New television channels and several new product offerings were introduced in both Ontario and Quebec during the third quarter, including a digital television and high-speed Internet bundle.
Look launched wireless high-speed business Internet services in the Ottawa Valley/Outaouais region in September, following a similar launch in June in the Greater Toronto and Montreal markets.
A direct-mail and advertising campaign was undertaken to promote the services.
The company's share price (TSXV:LOK) held at 50 cents in afternoon trading Thursday on the junior TSX Venture Exchange.
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