updated 02:50 pm EST, Fri February 29, 2008
Helio loses $326 million
MVNO carrier Helio has posted a net loss of $326 million for 2007, an official announcement reveals. Although the carrier's revenue grew to $171 million last year from $46 million in 2006, the company has also been facing mounting costs, such as an advertising budget that rose from $21.6 to $47.5 million. Recent losses are notably out of proportion to those from 2006, which were only $192 million.
This creates significant danger for Helio, as the company is no longer being funded by EarthLink due to issues such as its failed municipal Wi-Fi effort. Helio is not yet at risk of folding however, as it has raised $600 million in funding, and according to company representatives it still has $45 million in "cash, cash equivalents, and marketable securities." Its sole parent company is now Korea's SK Telecom. [via RCR Wireless News]