6/8/2015 11:28:13 AM
Lycamobile UK boosts revenue with unused pre-pay credit
Lycamobile UK has boosted its turnover by £45.7m for the year ending in February 2014, with the company stating it had benefited from changes to accounting policy.
The firm showed an increase in turnover from £142.3m to £201.4m, according to a report in The Sunday Times. The MVNO disclosed £45m of accounting ‘adjustments’ going back to 2010, with £20m coming from pre-pay customers who failed to use their mobile credit. The company stated that if a phone number remains unused for a period of time, the users’ credit returns to the company.
According to The Sunday Times report, Lycamobile maintains that the net effect of the adjustments was to increase pre-tax profit by just under £800,000; without this boost profit would have been £1.1m - a 73% decline on the previous year. Lycamobile’s reported pre-tax profit halved from £4.1m to £1.9m at the end of the 12 month period.
The operator had previously faced warnings this year from Companies House over prolonged delays in filing accounts, with Companies House threatening that the MVNO risked being dissolved.