VoIP service Skype is reported to have delayed its flotation on the stock exchange.
Reportedly the company has explained the setback, saying it is due to a need to increase its revenues.
A company spokesman said:
“We may incur net losses again and cannot assure you that we will be profitable in the future or that, if we are, we will be able to maintain profitability.”
Although Skype focuses on the domestic market, it is a move that will interest the IP telephony sector as a whole, including companies providing business phone systems for small to medium enterprises.
Skype’s plan for flotation has been recently criticised by a number of analysts in the industry; the common perception was that their plan for IPO was inadequate, and many expressed doubts over whether the company could be fully profitable.
The Wall Street Journal reported that the company’s plans have been put back until the latter half of 2011, and that pressure is being exerted on CEO Tony Bates, who was appointed the post in October 2010 to whip the company into shape. The paper understands that Bates needs more time to familiarise himself with the company, and is wary of it being undervalued to due to the turbulent economic climate in America at the moment.
In other news, many users of the service were left without access last month, when it suffered a major outage problem and left users unable to make calls for hours on end. This had a particularly negative impact on businesses, who expect their IP telephony to be rock solid. Skype has also struggled due to other companies who specialise in voice over Internet protocol (VoIP) telephony, and this is thought to have contributed to the company’s delay in going public.