INTERNET
NTR seeks interest in Irish Broadband
04-09-2006
by Emmet Ryan
National Toll Roads (NTR) has reportedly approached several companies in an effort to sell off its broadband subsidiary Irish Broadband.
NTR is said to be looking for EUR60 million for its broadband subsidiary. The news is unsurprising with NTR announcing earlier this year that Irish Broadband was no longer a core part of the business.
Speaking with ENN, an industry insider suggests that the hefty price tag may put off potential suitors. "The price is one that many might see as being at the upper end of the scale," the source told ENN. "If they had voice services as well as broadband then maybe it would be a more interesting prospect."
A report in the Irish Independent on Monday morning said the technology platform in place at Irish Broadband may not be compatible with some of the companies that would consider making an offer. ENN's source said this could be a factor. "It depends on the strategy of the individual company and what direction they want to go in."
According to NTR, Irish Broadband has 25,000 subscribers making it the third-largest provider of broadband services in Ireland. ENN's source believes the reputation of the subsidiary would not improve NTR's chances of finding a buyer. "The customer doesn't care what the name of their provider is. All they are interested in is service."
NTR's broadband business recorded a loss of EUR4 million in the first six months 2005. The subsidiary had revenues of EUR8.2 million in the 15 months to March of this year, compared with EUR2.2 million in 2004. NTR, which has interests in waste, energy and communications as well as toll roads, saw pre-tax profits for the first six months of 2005 fall to EUR10.1 million.
The company's energy and road divisions fared far better over the same period, contributing to a 40 percent increase in operating profits. NTR is reportedly selling Irish Broadband to focus on these capital-intensive operations, which range from toll roads to alternative energy and waste management. The company will issue 28 million new shares later this month in an effort to raise EUR150 million in fresh equity, valuing the company at approximately EUR1 billion.
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