Radianz talks up figures ahead of sale to BT

Radianz talks up figures ahead of sale to BT

Radianz, the financial extranet at the centre of ongoing negotiations between parent Reuters and prospective buyer BT, is reporting full year Ebitda of $40m, compared to a loss of $6m in 2003.

The company says cash flow from operations totalled $36m in 2004, compared to a net decrease of $24m in 2003. The firm has also reduced net losses on a GAAP basis from $90m in 2003 to $6m in 2004.

Revenues from its shared infrastructure increased 16% over 2003 to $300m.

Commenting on the results, Howard Edelstein, president and CEO, Radianz, says: "In a single year we have achieved a $60 million cash flow turnaround in our business, putting the company on sound financial footing."

The firm says total monthly services accessed via its network reached a record 30,900 last year, reflecting a compound annual growth rate of more than 400% over the past three years. The number of service providers available through the Radianz shared market infrastructure reached 150, up 30% over year-end 2003.

Reuters confirmed plans to sell Radianz to BT in November last year. The news and information group said it would pay joint venture partner Equant $110m in cash to buy the 49% stake in Radianz it didn't own, as a pre-requisite to the sale. BT is expected to complete the sale in the first quarter of the year.

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