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LONDON (Alliance News) - Zegona Communications PLC Tuesday said its acquisition Telecable had performed in line with its pre-acquisition expectations, seeing a strong finish to 2015, and it expects accelerating growth in the year ahead.
Zegona listed last March with the objective of buying a business in the European telecommunications, media and technology sector with a 'buy-fix-sell' strategy. It completed its first acquisition, buying Spain's Telecable for EUR640 million, last August.
The company reported a pretax loss of EUR16,437 for the period from its incorporation on January 19 to the end of December, on revenue of EUR53.0 million. The results include Telecable from its acquisition on August 14.
Zegona said that Telecable saw earnings before interest, tax, depreciation and amortisation rise 3.3% to EUR65.0 million in 2015 from EUR62.9 million in 2014, on revenue of EUR134.4 million, up from EUR130.9 million. This included particularly strong revenue growth in the company's fourth quarter, up 5% to EUR34.4 million from EUR32.8 million.
Segona said that, beyond Telecable, it continues to see "many attractive investment opportunities" in the sector.
The company plans to pay a dividend of 4.5 pence for 2016 as it expects Telecable to generate "significant excess cash" in the year.
"Telecable is our first acquisition and has made a great start under Zegona ownership. We are particularly pleased that the business delivered its 2015 financial targets fully in line with our pre-acquisition expectations," said Chairman and Chief Executive Officer Eamonn O'Hare in a statement.
"Telecable's growth has outperformed other players in the Spanish market in recent years, and it is encouraging to see that track record being maintained," O'Hare added.
Shares in Zegona were up 0.9% at 113.50 pence Tuesday.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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