The aquisition of Engin and Unwired by Seven Media is turning into a lemon with the media Company having to make a charge of $18 million for Engin alone. There is also speculation that Seven will not want to make any further investments in the two Companies that are being pounded by various telco's.

The acquisitions of the Unwired WiMax venture and a big chunk of the Engin VoIP concern are providing a continuing drag on the TV-centric company with some insiders at Seven saying that the networki is considering selling the two Companies.
Seven results for the year to June 30, reported to the ASX yesterday, include an $18 million charge for concerns at Engin. And Unwired still seems a long time away from any significant return on its heavy investment in WiMax technology ­ while telecoms carriers including Telstra, Optus and Vodafone are running riot with take-up of their HSPA 3G networks for Internet access and data downloading as well as mobile phone usage.

A note in Seven's annual report, tendered yesterday, says a review of Unwired's WiMax technical capacity is nearly completed but says "funding options (are) still to be addressed".

Revenues from the current proprietary-technology operation, confined to Sydney and Melbourne, generated revenues of $22 million and an EBITDA of $1 million ­ but licence amortisation meant an EBIT loss.

Overall, Seven recorded a net profit of $142 million for the year, down dramatically from the $1.62 billion profit recorded a year ago which included a one-time profit for the sale of Seven's stake in Seven Media to Kohlberg Kravis Roberts.