LONDON (Alliance News) - Zegona Communications PLC on Wednesday said trading in the first half met its expectations as its Telecable SA unit continued to perform well.
Spanish cable operator Telecable, which Zegona acquired for EUR640.0 million in August 2015, delivered revenue growth of 4.4% in the first half to EUR69.2 million, while earnings before interest, taxation, depreciation and amortisation increased 1.9% to EUR33.3 million.
Zegona said the results were in line with its guidance for 2016, with continued year-on-year growth in Telecable's business-facing segment.
Zegona added it will pay an interim dividend of 2.25 pence per share and will pay a total dividend for 2016 of 4.50p, with the balance to be paid after the year-end.
Zegona, floated in March 2015 with a view to making acquisitions in the European technology, media and telecommunications sector, also said it continues to see a number of potential further deals to make in the European sector.
This is despite the company in June having terminated talks to acquired Spanish mobile operator Yoigo, withdrawing from the bidding after another Spanish mobile firm, MASMOVIL Ibercom SA, agreed to buy Yoigo.
For Zegona itself, revenue in the first half totalled EUR70.5 million, predominately from Telecable. It did not make any revenue in the first half of 2015. Its pretax loss for the first half of 2016 was EUR4.5 million, mainly due increased financing costs which offset Telecable's profitability.
Zegona shares were up 4.0% to 102.40p on Wednesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Zegona Com (ZEG)