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Telecity paints grim picture of Web hosting sector
Matchstick men and matchstick cats and dogs
The Web hosting industry is on its knees and shows little sign of recovery in the near future.
This downbeat assessment of the sector was delivered yesterday by Telecity after it reported that turnover remained flat.
Turnover to the six months to the end of June was down a smidge to £12.17m from £12.56 during the same period last year.
Pre-tax loss was £16.92m, down from £23.32m last year.
However, according to Telecity there is little sign that the Web hosting sector will recover before the end of the year, with the sector still suffering from an oversupply of collocation services.
Said Telecity chairman, Michael Hepher, in a statement: "The market continues to be difficult and shows no immediate signs of bouncing back before the end of 2002."
Elsewhere, there are fears that there could be job losses at Interliant's UK operation.
The US-based managed hosting firm and ASP lost its CEO and president Bruce Graham and COO Steve Munroe after finally filing Chapter 11 bankruptcy protection. ®