Problems in 2006
Having head-hunted 49 managers from Eircom to promote and market broadband door-to-door, some as recently as five months earlier, the Chief Executive of Smart Telecom, Oisin Fanning fired 26 of them abruptly on August 31, 2006. This took place in the context of unmet sales targets of 64,000 sign-ups, aggravated by Smart being unable to get its equipment into many Eircom exchanges which meant that Smart had no product to sell in many parts of Ireland.
Smart Telecom (SMR.L) shares traded at 9c in early September 2006, less than two thirds of their floatation price. Sales for 2006 are anticipated to reach €60 million - up from €45 million in 2005. However losses of €23 million in 2005 are anticipated to be eclipsed by losses of €35 million in 2006.
Future prospects will be defined by the achievement of substantial growth in broadband sales volume and eliminating losses, heralded promises which stakeholders, including Seán Quinn, have been waiting patiently to emerge.
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