In The Papers 1 December

01-12-2008

by Deirdre McArdle

Profits swell at Digital River Ireland | FCC pushes plan for free wireless internet in US

The Irish Times reports that the US-owned e-commerce firm Digital River Ireland returned a pre-tax profit of EUR1.7 million in 2007, compared to a pre-tax loss of EUR821,962 in 2006. Last year the Shannon-based company increased the size of its business by 35 percent, from EUR32 million to EUR43 million over its previous accounting period for the 16 months prior to December 2006. According to a statement the directors "expect our revenues to grow due to higher internet usage and e-commerce growth in the number of online game and consumer electronic clients we serve, expanded strategic marketing activities with a large number of clients and acquisitions".

According to the Wall Street Journal, outgoing Federal Communications Commission Chairman Kevin Martin is pushing for action in December on a plan to offer a pornography-free wireless internet service to all Americans, despite objections from the wireless industry and some consumer groups. The proposal to allow a no-smut, free wireless internet service is part of a plan to auction off a chunk of airwaves. The winning bidder would be required to set aside a quarter of the bandwidth for a free internet service.

The Financial Times reports that MTN, a mobile operator in Africa and the Middle East, is looking to dispel fears that telecoms companies in emerging markets are no longer attractive investments. MTN chief executive Phuthuma Nhleko said there had been an "overreaction" by investors against telecoms companies in emerging markets. He added that the mobile industry in developing countries should fare better than many other sectors during the economic downturn because people regarded communication as essential. MTN has seen its shares fall 20 percent this year, partly because of investor fears that rising inflation in developing countries will see people cut their mobile spending.

The Sunday Business Post reports that managed services and resourcing firm IT Force has increased its turnover 30 percent in the past year. The information was contained in the company's accounts, which also revealed revenues rose to EUR4.5 million for the year ending 30 September. This is an increase of EUR1 million on the previous year. The company said it had made a profit for the year, but declined to go into details. Last year, it made a profit of EUR289,000.

The same paper reports that Irish software firm Shenick Network Systems is planning to expand after raising EUR1.5 million in funding this year. The company provides IPTV testing and monitoring solutions, and raised the money from existing investors. The firm is planning to expand in the US. The latest accounts filed by the firm show accumulated losses of close to EUR8.7 million by the end of 2007.

The paper also writes that Sony is planning a major push on promoting its Little Big Planet game in the run up to Christmas, signing up Irish celebrities such as comedian Jason Byrne, singer Cathy Davey and Today FM DJ Ray Foley to launch the product in the Odeon on Tuesday. The game allows you to build and upload your own virtual world. In the first week of its launch, 90,000 levels were uploaded.