VoIP services market will exceed US $93200 Million in revenue by 2024

Market Insights Reports has added a new research study on the title The Global VoIP Market Growth (Status And Outlook) 2019-2024 with a thorough analysis of the VoIP market.

The Global VoIP market is anticipated to see strong growth. According to the report, over the next five years, the VoIP market will record a 3.1 percent CAGR in terms of revenue. Surprisingly, the global market size will reach US $93200 million in revenue towards the end of the forecast year 2024.

With the increasing growth in advanced technology and the development of a wireless mobile communication system, Voice over Internet Protocol (VoIP) market is booming across the globe. Moreover, an increasing number of portable devices in the corporate world is also resulting in the rising demand for VoIP services. The leading companies providing VoIP services are also constantly updating their services to meet the global VoIP service market demand. VoIP service providers are introducing new features in VoIP services to attract both residential and business users.

The proliferation of technology and the availability of high-speed internet are also playing a significant role in the growth of the global market for VoIP services. The companies are also expanding, and this expansion drives the demand for an efficient communication system. Another major factor that contributes to the growth of the global VoIP services market is the snowballing adoption of Bring Your Own Device (BYOD) in the corporations. Smartphones are replacing computers; therefore, companies are focusing on developing VoIP software that can integrate with mobile applications.

Another report “Global Market Study on VoIP Services: Managed IP PBX Service to Witness Highest Growth During 2017 – 2024” published by Persistence Market Research projected significant growth in the VoIP services from 2017 to 2024. By the end of the forecast period, international long distance VoIP calls are estimated to surpass US$ 120 billion in revenue. Based on the service type, Managed IP PBX service is anticipated to account for the highest share in the global market for VoIP services during the forecast period from 2017 to 2024. Based on the configuration, computer-to-phone is expected to witness the highest growth. In terms of end-user, a corporate user is likely to emerge as the largest user of VoIP services during 2017-2024.

Why are VoIP services popular?

The popularity of VoIP services upsurges with each day. Several factors are playing a significant role in its rapid growth. As compared to the traditional telecommunication. People find VoIP technology much convenient, and this is the fundamental reason behind VoIP’s popularity. There are some other important reasons behind the emergent adaption of VoIP technology.

1. Global Technological Advancement

As mentioned earlier, the mounting usage of mobile phones and the easy availability of the internet is one of the major reasons behind the increasing popularity of VoIP technology worldwide. High-speed 5G internet is on its way to transforming the digital world. Experts predict that 5G will offer speeds 20 times faster than existing connections.

2. Cost

VoIP services offer the cheapest means of telecommunication. When a cheaper option is available, people choose this over a traditional landline. Many people doubt the call quality of VoIP services, but the latest VoIP technology and high-speed internet ensure crystal-clear voice quality. It is especially beneficial if your business has to make multiple international calls regularly. VoIP service providers offer competitive call rates. Beside lower call rates, it cuts the cost of extra hardware and maintenance, too.

3. Advanced Features

VoIP services offer advanced features like call transferring, enhanced voicemail, and auto attendant. VoIP service providers offer features like caller ID, virtual numbers, and contact blocking, etc. It is all about making the best use of these advanced features. And therefore, with the advanced features, the popularity of VoIP technology continues to grow.

4. Video Calling

VoIP technology offers the feature of video calling at a negligible cost. All you need is a high-speed internet connection. This enables you to stay in touch with your customers and employees to discuss important deals and plans. No matter where you are, you can conduct a video conference in the home office through your VoIP phone.

5. Limited Hardware

Hosted VoIP systems require very less hardware. A simple VoIP application can be used to make calls over the internet using any device with an internet connection, like the laptop, PC, or smartphone. VoIP technology also offers the feature of portability, making it more prevalent than its counterparts.

Profile of the leading company in the VoIP Service Market – AxVoice

While there are numerous VoIP service providers available online, choosing the right one that meets all your business needs is what matters. Axvoice is one of the leading VoIP service providers that offer competitive plans with a bundle of advanced features. It offers a high-quality crystal clear voice for all types of users. For small businesses, it saves costs.

Getting started is easy:

One prime reason for the Axvoice popularity is the convenience that comes with it. It is simple to set up and use. To start making calls with your VoIP phone, all you need is:

• A high-speed internet connection (cable or DSL)
• A standby Ethernet port (on your modem/router) to connect Axvoice Phone Adapter if you want to use the internet on your computer and Axvoice Internet Phone Service at the same time
• A touchtone phone

Features and Functionality:

The features of Axvoice are categorized into four parts:

1. Outbound Call Features

Axvoice offers a wide range of outbound features. Features like three-way calling are useful for a conference meeting where you don’t have to worry about your physical presence in the office. Caller ID blocking and international call blocking ensure that time and money are not wasted over irrelevant calls. The Music on Hold is another amazing outbound feature that keeps your caller engaged while you are busy on another call. Dialing 911 from your Axvoice VoIP phone will inform the emergency authorities that you are in trouble and will also share your location with them automatically (called E911 or Enhanced 911).

VoIP service is highly dependent on the internet connection. The voice quality is compromised if there is an unstable internet connection. Axvoice has overcome this issue by enabling the communication channel to switch to a low bandwidth codec easily. AxVoice uses GSM, G.729, G.711u, and G.711a codecs.

Incoming Call Features

Incoming call features like call waiting and call blocking allow you to handle incoming calls professionally. You can get details regarding incoming caller ID. You can set up to 3 alternate numbers for receiving your business calls in case your primary number is busy. Using this feature, you will never miss out on important client calls. Apart from this, the Call Filter feature enables you to direct specific calls to your number. Using the Do Not Disturb feature, you can also redirect calls to a voicemail during off-hours.

Call Forwarding Features

The call forwarding features make your business communication efficient by ensuring that users never miss on a call. The Find Me/Follow Me feature enables the user to add a list of numbers that redirect the call to several numbers until you pick up. Axvoice allows you to add up to 3 numbers for sequential call forwarding. Furthermore, in case of a power outage, Axvoice takes care of your important call be forwarding them to another number specified by you.

Advanced Features

Axvoice comes with a bundle of advanced features, including call logs, enhanced voicemail, and free in-network calling. In case you want to use VoIP service on your cell phone or computer, then Axvoice offers support for softphone software to make calls without using your landline. With this best VoIP service provider, you can access the notifications on the go. If you already have a VoIP device, you don’t need to set up new hardware because Axvoice can be integrated with a simple configuration.

Service Plans:

Axvoice offers two reasonable service plans for small businesses. The details are given below:

Small Business Plan

For the limited calling needs of a small business, Axvoice offers a competitive pricing plan with unlimited in-network calling. It gives you 1500 outgoing minutes to anywhere in the US and Canada. Also, you will get the equipment free with this package. For this service plan, there are two pricing options:

One Month – $39.99 per Month

Flexible Yearly Plan – $29.99 per Month

Home Office (SOHO) Plan

This service plan doesn’t require any additional hardware as it uses a virtual phone system, also known as hosted PBX. It is easily scalable, and you can add additional lines easily as your business grows. It offers One Month plan for $14.99 per month and comes with all standard features. The plan offers 200 outgoing minutes while any additional call will cost 1.5c per minute. It offers free in-network calling across the U.S. and Canada.

A VoIP system offers mobility and convenience to business users. Reduced operating, capital expenses, and improved business continuity are just a few of the benefits of moving from traditional phone systems to the internet. If you are a small business owner, this is the time to switch to a VoIP service.

Danish taxman delivers £126m demand to Just Eat after London HQ move

Just Eat is embroiled in a row with Danish authorities over more than £100 million in back taxes.

Denmark has accused the fast-food delivery app of failing to pay enough tax after shifting its headquarters from Copenhagen to London in 2012. Last year the taxman made a £126 million claim against the company after an audit into how profits are allocated across the group.

Just Eat, which is in talks over a proposed £5 billion takeover by a Dutch rival, believes that the claim is without merit. Nevertheless, it has made a £21 million provision to cover the potential bill, accounts published last week show. It admitted that under the “most extreme” scenario it would have to pay the “full £126 million”, which includes back taxes, interest and penalties.

The online takeaway service was founded in the Danish capital in 2001 and established a British subsidiary five years later, which became its most valuable operation. The tax dispute is thought to centre on a disagreement over where Just Eat pays profits for use of its brand.

After relocating, Just Eat is understood to have begun registering new trademarks in Britain, paying HM Revenue & Customs taxes on profits generated from the intellectual property. The Danish authorities believe that they were shortchanged. They argue that Just Eat should have paid higher licensing fees for existing trademarks, which remained in Denmark. As a result, Just Eat paid lower taxes in its country of origin than it should have done, according to sources with knowledge of the dispute.

The Danish tax agency declined to comment. The company declined to answer specific questions on the legal tussle, but pointed to stock exchange disclosures on the “ongoing transfer pricing audit”.

The dispute is to be resolved through a “mutual agreement procedure” between British and Danish authorities. A decision is due next year and Just Eat said that it expected the “full elimination of the potential double taxation”.

“Such an outcome may result in a reallocation of income between the UK and Denmark, with different tax rates applying over different time periods and net interest charges,” Just Eat said in its half-year earnings statement.

Last week, Just Eat agreed in principle to an all-share bid from Takeaway.com, which would give Just Eat investors 52 per cent of the new business.

Retail landlords suffer £1bn loss after Intu hits record low

Almost £1 billion was wiped off the value of Britain’s biggest retail landlords yesterday after a shopping centre owner warned that it may need to raise equity in the face of fast-declining rental income and property values.

In the starkest sign yet of the fallout from the commercial pressures facing the retail sector, Intu Properties said that it was considering several “self-help” measures as it reported an £840 million first-half, pre-tax loss.

The owner of the Lakeside shopping centre in Essex and the Trafford Centre in Manchester said that net rental income had fallen by 18 per cent to £205.2 million in the six months to the end of June as a result of retailers falling into administration or using insolvency measures to close stores or cut rents.

The FTSE 250 group warned of more declines in rent in the second half of the year, before improving in 2020. The valuation of Intu’s shopping centres was reduced by 9.6 per cent, leading to a £872 million writedown, which in turn pushed it into the red.

The results shocked investors and its its shares fell 32 per cent to an all-time low of a little under 48p, wiping more than £300 million off its value.

Listed retail landlords were caught up in the sell-off. Hammerson, which this week reported a sharp fall in rental income and property values for its UK shopping centres, fell by 10 per cent; Capital & Counties fell 5.7 per cent; Newriver Reit, which owns shopping centres, retail parks and pubs, closed down 4.2 per cent. British Land and Landsec, FTSE 100 property companies with big retail holdings, lost 3.4 per cent and 3.5 per cent, respectively.

Intu was formed in 2010 from the demerger of Liberty International, which split its shopping centres business from its London property holdings. It owns 17 shopping centres in Britain and a handful in Spain, attracting 400 million shoppers a year.

It is trying to sell assets to reduce its £4.7 billion debt and limit the risk of it breaching its debt covenants because of falling valuations. It is also planning to introduce alternative uses to its shopping centres, including housing, hotels and flexible workspaces.

Carmakers slash factory investment to spend on Brexit preparations

Only £90 million of new investment was committed to automotive plants in Britain in the first half of the year as the industry diverted spending of at least £330 million to Brexit preparations.

Figures from the car industry show that commitments of inward investment in factories all but dried up in the six months to the end of June, compared with an average investment of £2.7 billion a year over the past seven years.

There were only a handful of spending commitments on new projects, adding up in aggregate to £90 million, according to the Society of Motor Manufacturers and Traders.

During the period Honda announced the closure of its site in Swindon and Ford of its engine plant in Bridgend. In contrast, the SMMT said that incomplete data from its members on preparation for a March Brexit, which has been postponed until October, identified spending on stockpiling, extra warehousing, insurance and shutdowns of at least £330 million.

However, since June 30 the industry has received a boost, with Jaguar Land Rover announcing plans to invest £1 billion in turning its Castle Bromwich factory in the West Midlands into an electric vehicle manufacturing plant.

The society’s figures also show that factory gate output has fallen by 20 per cent this year, including a 15.2 per cent year-on-year drop in June, and that three in ten vehicles coming off assembly lines have diesel engines, despite the backlash against diesel cars.

Mike Hawes, chief executive of the SMMT, said: “These figures are the result of global instability compounded by fear of no-deal. This fear is causing investment to stall, as hundreds of millions of pounds are diverted to Brexit cliff-edge mitigation, money that would be better spent tackling technological and environmental challenges.”

Factory shutdowns normally scheduled for the summer were brought forward to April by some carmakers in preparation for a Brexit transition. That accounts for some of the 20 per cent slump in production from 834,000 cars to 666,000 cars in the first six months. The 15 per cent fall in output in June represents the underlying decline in production, according to Mr Hawes.

Dragons’ Den pair make £4M selling energy switching company

Two entrepreneurs who appeared on BBC’s Dragons’ Den have made about £4 million by selling their energy switching business to the owner of the Go Compare website in a £12.5 million deal.

Henry De Zoete, who played a leading role in the campaign to leave the European Union, and his friend Will Hodson set up their energy switching service in 2014 and it operates the Look After My Bills website.

They secured £120,000 in exchange for 3 per cent of the business from the Dragons investors Tej Lalvani and Jenny Campbell last year in a transaction that valued their company at £4 million. The deal was hailed as the best ever struck on the programme because it was the biggest amount spent by the Dragons on the smallest stake.

The Goco Group, listed in London, announced yesterday that it had bought This Is The Big Deal Ltd, owner of Look After My Bills, for £8.5 million, including £6 million in cash up front and a further £2.5 million in a year’s time. Goco will pay £4 million more in an earn-out if the business hits performance targets.

It is understood that Mr Hodson, 37, and Mr De Zoete, 38, will receive about £2 million each based on the £8.5 million price tag and will net slightly more if the earn-out is reached. The Dragons have at least doubled their money and could triple it if the targets are met.

Mr Hodson and Mr De Zoete studied politics together at the University of Bristol. Mr De Zoete previously worked in government as a special adviser to Michael Gove and was the digital director of the Vote Leave campaign during the Brexit referendum.

Look After My Bills, which has 36 staff, uses algorithms to switch its 150,000 customers automatically to a cheaper energy deal when their existing deal ends. Mr De Zoete said of the sale: “You don’t take these kinds of decisions lightly. To be able to access the kind of resources that a plc can bring means we’ll be able to grow even faster.”

Goco, led by Matthew Crummack, is pushing into the so-called autosave industry with its rival Weflip brand.

The Look After My Bills founders will stay with the business after its sale and Goco will run it separately from Weflip.

Goco also posted a 52 per cent fall in half-year pre-tax profit yesterday to £7.6 million after it was hit by the cost of launching Weflip last year.

Esports to be worth over $1 billion by 2020

The esports industry is set to easily exceed $1 billion by 2020 according to Newzoo – the self-proclaimed leader in esports, games and mobile intelligence.

Esports which is essentially competitive gaming, has become a global phenomenon with hundreds of millions of fans from all around the world tuning into esports events via their mobile phones, tablets and computers.

The industry is expected to smash through the $1 billion mark by 2020 as global brands look to take advantage of the popularity of esports via esports betting markets, advertising and sponsorship.

The Esports Market

The primary esports viewing platform – Twitch – has become one of the most regularly watched streaming platforms in the world. The Amazon owned gaming platform and social network is accessed by tens of million pf people per day, and this number is only increasing.

Incidentally, more people watch gaming streams every month than watch news channels. The current esports audience total’s at over 200 million whilst by 2020, the number is expected to exceed 300 million.

Esports are now one of the most popular pastimes on the planet, male millennials especially populate around 80% of esports audiences. This has opened up a huge market for brands looking to advertise directly to millennials.

For the most part, the majority of brands on Twitch that are looking to advertise to the huge Twitch audience are primarily gaming brands – which makes sense given that Twitch is a gaming platform, afterall.

However, it is thought that non-gaming brands are missing out by not advertising via Twitch. At the start of this year, nearly one million people were watching a Twitch live stream at any given point. Millennials are notoriously difficult to market to though, they are very tech savvy and tend to know whether they are being sold something or not, so advertisers need to ensure that they come up with a clever advertising campaign in order to successfully market their product.

Esports revenue is made up of several different streams, the largest being sponsorship and the second largest being advertising. Indeed, over 70% of the esports economy is generated via sponsorships and advertising.

As the esports audience grows larger, the more money advertisers will throw around in order to market to the growing audience. Sponsorship money into esports players, teams and events also continues to increase year upon year – this is the biggest filling in the esports pie.

The general attention on esports is growing exponentially. There are so many things going on, and new games show up every day. Lot of people want to watch esports matches online, so if you want to stay updated about the next esports event you can have a look at website esportsguide.com , where you can find the updated list of all the upcoming esports events out there, so that you will not miss a match or a tournament anymore! If you will also find guides about the games and news about the upcoming tournaments.

Sponsorships

Big businesses from all around the globe are investing into esports. The esports market in China is set to be dominated by Tencent – the multinational investment holding conglomerate. Tencent has become one of the most aggressive promoters of esports and professional gaming.

It cannot be overestimated just how popular esports are in China. Over 10,000 esports teams exist in the country whilst matchups in the countries famous King Pro League tournament garner as many as 240 million daily views.

However, Tencent is not the only company in the world which has coined on to the investment opportunities that esports offers. Walt Disney Co, Amazon and Alphabet are three others that have seen the growth in the industry and jumped upon the bandwagon. One of the biggest esports franchises in the world – Virtus Pro – has grown so large partly due to the investment it received early on.

In 2015, Russian billionaire Alisher Usmanov invested $100 million into the team and that investment has certainly paid off. Beloved in Russia, Virtus Pro have won a variety of different titles across a number of different games and have become one of the most well-known esports teams in the world.

This sponsorship into an esports team also opened the eyes of many people, as well as potential investors. Since that initial investment in 2015, the money being pumped into esports has increased tenfold.

One of the biggest events in the esports calendar is Dota 2s ‘The International’. It is easy to track the growth in popularity of esports just by following the prize pool of Dota Two’s standout event. Every year the event is crowdfunded by fans and each year the prize pool increases in size. The international 2017 prize pool eclipsed $24 million which left a whopping $10,862,683 to the winning team. The upcoming ‘International’ is expected to be even higher.

The Future

Currently, there is no ceiling for esports. Esports is one of the only fan based industries in which fans have a major say in what happens. If esports fans are not happy with something, they will let the powers that be know it in their droves.

You only have to look at the backlash surrounding the FIFA games series and its developers EA Sports to realise that esports fans have a lot of power in shaping the industry itself – in a world where monopolies dominate, often at the expense of the consumers, this is a rare thing.

Currently though, the major esports organisers – Valve, ESL and Dreamhack – are doing an extremely good job of organizing events and ensuring that the fans, players and team alike are all treated to fantastic esports events. The organisers are taking the best things about regular sports and implementing them into esports.

For example, fans are able to use their esports knowledge and place bets on their esports matches via esports betting sites. Esports franchise games such as Dota 2 require a large amount of skill to master but if you put in enough time and effort garnering the knowledge in order to really knowing the ins and outs of the game, you can pick up on small edges when watching Dota 2 streams, making gambling on Dota 2 arguably much more profitable than gambling on a regular sport such as football, for example.

Young people are growing up in an internet age of live streams and it is looking increasingly likely that esports are becoming the sports of the future.

The most popular and well-known esports ‘athletes’ have huge social media followings and are idles for millions of young people worldwide. Esports betting has also made audiences feel even closer to their favourite teams and athletes as they join in with both the heartache and happiness of their idles.

Already mainstream sports teams including European football teams and basketball teams in the USA are creating their own esports teams so they can market their clubs to the new generation of sports fans.

Some sports athletes are even creating their own Twitch channels in order to stream their favourite games to fans.  At the same time, the average attendance in classic American sports such as baseball continues to decrease as Major League Baseball searches for ways to attract millennials – something that is proving difficult in what has become a digital world.

The world is constantly evolving and sport is evolving alongside it. Esports have forced their way into the hearts of primarily young people who have grown up during the digital age. As technology evolves, competitive video gaming will evolve with it and it is hard to imagine esports not getting bigger and bigger in the upcoming years.

Equifax to $700m in data breach fine in US

Equifax has agreed to pay up to $700 million to settle American investigations into a huge data breach two years ago, an amount that dwarfs the £500,000 fine imposed by Britain’s data protection watchdog.

Federal and state agencies said that Equifax “engaged in unfair and deceptive practices” in connection with the breach, which affected about 147 million people. It is one of the largest known breaches in terms of people affected.

Equifax, one of the “big three” credit reporting agencies alongside Experian and Trans Union, collects credit data on about 800 million people. The company revealed in September 2017 that its computer network had been hacked and information including names, addresses, dates of birth and social security numbers had been stolen. About 15 million accounts linked to UK residents were affected by the hack. In September last year, the UK Information Commissioner’s Office fined Equifax £500,000, the largest penalty it was allowed to impose. The agency is now able to impose larger penalties after a change in the law.

The US settlement was agreed with the Consumer Financial Protection Bureau, the Federal Trade Commission, 48 states, the District of Columbia and Puerto Rico. They accused Equifax of “failing to provide reasonable security for the massive quantities of sensitive personal information stored within its computer network, causing substantial injury to consumers whose data was stolen” and “deceiving consumers about the strength of its data security programme”.

Letitia James, the New York attorney-general, said: “Equifax put profits over privacy and greed over people, and must be held accountable to the millions of people they put at risk. This company’s ineptitude, negligence and lax security standards endangered the identities of half the US population.”

Joe Simons, chairman of the Federal Trade Commission, said: “Companies that profit from personal information have an extra responsibility to protect and secure that data. Equifax failed to take basic steps that may have prevented the breach.”

Mark Begor, chief executive of Equifax, said that the settlement was a “positive step”. In its last quarterly report, Equifax said that it had set aside $690 million to cover the penalties.

Equifax shares, down 2 per cent since the breach emerged, rose $0.74, or 0.6 per cent, at $138.04 by midday in New York, valuing the company at $16.7 billion.

Metro Bank plans £500m sale of loan book to private equity firm

Metro Bank is beefing up its senior management and preparing to sell a £500 million portfolio of mortgages to restore confidence among investors.

The struggling lender is set to sell the portfolio, which is thought to be mainly made up of loans to landlords, to Cerberus Capital Management, the private equity firm.

Shares in Metro bounced 27¾p to close at 500p on the news, which comes two days before it reports its results for the first half of the year. Sky News first reported the talks with Cerberus.

Metro announced two appointments to its executive committee yesterday. Daniel Frumkin, a Briton has who worked at Royal Bank of Scotland, Northern Rock and, most recently, the Bermuda-based Butterfield Bank, will join as chief transformation officer with a brief of improving efficiency and customers’ experience. Cheryl Newton, a Canadian technology specialist who has worked for banks including JP Morgan and Lloyds, will become chief information officer. Both are 55.

The bank is searching for one or more new directors to join its board. Critics are pressing for Metro to replace Vernon Hill as its chairman.

Metro was set up by Mr Hill, 73, in 2010, winning the first new banking licence in the UK in more than 100 years. It now has 67 branches, 1.7 million customers and a £22 billion balance sheet, built on its customer-friendly model of seven-day opening and high service levels. At its peak in spring last year, Metro was worth £3.5 billion.

However, it has been struggling with scepticism about its business model and criticism of its corporate governance. It shocked the stock market in January by revealing that it had wrongly assessed loans to companies and landlords, requiring it to increase its risk-weighted assets by £900 million and to hold more capital than it had expected.

Metro has lost four fifths of its value from its £3.5 billion peak in March last year. The London-based lender raised £375 million in May at £5 a share, but last week dipped below that level.

The bank yesterday confirmed that “discussions regarding the potential sale of a loan portfolio are taking place”. Metro did not give details of what loans it is in talks to sell. John Cronin, an analyst at Goodbody, the broker, said they were likely to be among those whose riskiness was underestimated.

Metro appears to be unwinding part of two earlier deals where it bought assets from Cerberus for £1.1 billion.

Selling all the miscategorised loans at their face value of about £1.6 billion would increase its core equity tier 1 capital, a key measure of financial strength, by 2.4 per cent, Mr Cronin said.

Analysts at Exane BNP Paribas said Metro could also free up capital by securitising about £2 billion of its loan book, but both moves would reduce revenues and profitability.

Eve Sleep causing investors sleepless nights as sales to hit targets

Eve Sleep cut its losses by 50 per cent in the first half of the year but warned investors that the company expects to miss its annual sales targets.

The direct-to-consumer mattress group reported a 50 per cent fall in losses to £5.9 million in the six months to June 30 after it focused on its core markets in the UK, Ireland and France. Group underlying revenue fell by 8 per cent to £12.9 million after a 29 per cent sales slump in France.

The company was launched on Valentine’s Day 2015 with what it claims are the “world’s most comfortable mattresses”. Customers order online and receive their mattress in a compact box. Its prices for a single start at £299, rising to £899 for an “emperor” and customers are offered 100-night trials. It also sells bed frames, duvets and bed linen.

The warning on sales sent its shares tumbling yesterday, down 1¼p, or 14.2 per cent, to 7½p giving it a market value of £19.7 million. This compares with an issue price of 101p and a value of £140 million at its float on London’s junior Aim market in May 2017.

The sharp fall in the share price was also a blow to Neil Woodford, the fund manager who has been a long-term backer of the company with almost a third of the stock. The Equity Income Fund run by Mr Woodford’s firm has been frozen for an indefinite period to stop it being overwhelmed by withdrawals by investors concerned by its poor performance.

Last July Eve Sleep parted ways with Jas Bagniewski, the co-founder and former chief executive, who celebrated the company’s flotation by adding the word “pirate” to his already heavily tattooed forearms to represent “freedom and doing things your way”.

Eve Sleep said Mr Bagniewski was leaving by mutual agreement, adding that management had made “some strategic mis-steps, underestimating what is required to develop a meaningful footprint across continental Europe, while losing focus on creating an aspirational sleep brand in its core market”.

Mr Bagniewski was replaced as chief executive by James Sturrock, who joined in September last year. Mr Sturrock said yesterday he was pleased with financial progress in the first half, despite “substantial retail headwinds” and the competitive nature of the category.

Daily Mirror owner looks to extend Reach with purchase of rival titles

The owner of the Mirror, Express and Star national newspaper titles is in talks to acquire parts of the rival publisher behind the i and The Scotsman.

Reach, which changed its name from Trinity Mirror last year, said yesterday that it was looking at “certain of JPI Media’s assets”.

JPI was put up for sale in May by its bondholder owners about six months after the debt-ridden company was bought out of administration.

It is one of the largest local newspaper groups and owns more than 200 local and national newspaper titles, which include The Yorkshire Post and The Portsmouth News.

The i, launched in 2010 as the sister newspaper of The Independent, is considered the most desirable asset in JPI’s portfolio. The i was acquired from ESI Media, publisher of the Evening Standard, in 2016 for £24 million.

Reach did not state which titles it was interested in buying, but said: “The board . . . confirms that it is in early stages of discussions in relation to acquiring certain of JPI Media’s assets . . . There can be no certainty at this stage that these discussions will lead to an agreed transaction.”

The talks were first reported by Sky News, which said that Reach had submitted an indicative offer for JPI.

The industry continues to face big pressures and changing trends with the decline in print advertising and circulation and the growth of digital news.

The local press has been hit hard and has been cutting costs and jobs. Circulations continued to fall nationwide for regional daily papers in the second half of last year, according to ABC figures.

Reach, led by Simon Fox, 58, the former boss of HMV, bought the Express and Star national newspapers and OK!, the celebrity magazine, from Richard Desmond, the newspaper tycoon, for £200 million in February last year.

In May Reach posted revenues up by 4.4 per cent over the four months to April 28. They fell by 6.4 per cent on a like-for-like basis.

JPI, formerly known as Johnston Press, was acquired by its creditors, including Goldentree Asset Management and Fidelity, in a pre-pack administration process in November. The lenders injected £35 million of cash into the group, wrote off £135 million of debt to £85 million and offloaded liability for its pension scheme.

JPI declined to comment on Reach’s announcement. David King, chief executive, told staff it was “in a formal process to explore the sale of the business” but was “in the meantime . . . accelerating our transition to a digital business”, including introducing subscriber registration and payment to some titles. Shares in Reach fell 1¼p to 79¾p on the London Stock Exchange, valuing the company at £238.8 million.

Asos issues loses a quarter of its value overnight as sales plummet

Asos lost almost a quarter of its value yesterday after a bungled warehouse overhaul knocked the online retailer’s sales growth off course and prompted its third profit warning in a year.

Investors fear one of the brightest names in retail is coming under intense pressure from rivals while its investment-hungry business model stumbles.

Asos was founded in 2000 by Nick Robertson, 51, grandson of the founder of fashion label Austin Reed, and his brother Nigel.

It listed on Aim in 2001 at 20p a share and enjoyed an explosion in sales and value as it cornered the fast-fashion market. It has 18.4 million customers, more than a billion visits to its website and employs about 4,400 people.

Yesterday’s warning sent the shares down by 636p, or 23.2 per cent, to £21.07, meaning the company’s value has fallen by 65 per cent this year.

Investors appeared to be unmoved by the chairman Adam Crozier’s attempt to support the business by buying £100,000 worth of shares.

Asos said that its pre-tax profit will now be about £30 million to £35 million this year, £20 million less than analysts expected. Total sales grew 12 per cent to £919.8 million in the four months to June 30, far below its typical growth rate of 25 per cent.

The company blamed a disastrous IT upgrade at its Berlin warehouse which meant its automated software couldn’t cope with the volume of returned clothes. This resulted in stock clogging up its supply chain, a shortage of goods and customers not being able to buy what they wanted from its website. Nick Beighton, the chief executive, said: “The European customer experience has not been as good as it once was or should be”.

He said the problems should be fixed by September, although analysts at Investec warned that if they remained by November’s peak trading during Black Friday the company would face “calls for management changes and further severe downgrades”.

Asos’s US ambitions have been hampered as its Atlanta warehouse has only been able to stock half the fashion ranges the retailer sells in the UK after third-party brands ran into border control difficulties.

US customs require extra details about the chemical composition of clothes and manufacturer documentation, which a clutch of smaller brands did not have the resources to handle.

Mr Beighton, 50, said there wasn’t an issue with customer demand and highlighted that the number of visits to the website had grown by almost a fifth, but order volumes lagged at 11 per cent.

“In any business of scale there is complexity, it’s unavoidable,” he added. “We are turning from a UK-centric seller into a local international operator and that requires proper muscle and infrastructure to deliver.”

The collapse in the share price means that Asos is worth £1.7 billion, significantly less than its smaller rival Boohoo’s £2.4 billion market value. Boohoo made sales of £856.9 million compared with its rival’s £2.4 billion revenue.