Telecable boosts Zegona's first half

Zegona Communications posted its interim report for the six months to 30 June on Wednesday, with revenue at its primary operation - the recent Telecable acquisition - up 4.4% to €69.2m, on total group revenue of €70.5m.

It was the first full year of ownership of the northern Spain quad-play communications provider, supplying landline telephone, broadband, cable television and mobile phone services.

The AIM-traded firm said Telecable EBITDA grew 1.9% to €33.3m, with group EBITDA of €31.4m.

Telecable cash flow growth was 10.6% to €20.4m, with total group cash flow of €18.5m during the period.

Zegona’s board confirmed a 4.5p per share dividend for 2016, with 2.25p to be paid in October and the balance to be paid in March 2017.

“Last month we celebrated our first full year of Telecable ownership and it is pleasing to see such strong results in the first half of 2016 building on a robust finish to 2015,” said Zegona chairman Eamonn O’Hare.

“Telecable has a clear strategy that is delivering results with continued growth in revenue, EBITDA and cash flow.

“We are encouraged by the momentum in the business, underpinned by a consumer price rise and progress in growing the business and mobile segments,” he explained.

O’Hare said the performance, together with further evidence of price repair in the Spanish telecoms market and the improving economic environment, gives the board confidence that Telecable will continue to deliver growth in 2016 in line with full year guidance.

“As we look out across the European TMT landscape, we see many attractive investment opportunities.

“We will continue to evaluate those transactions which enhance shareholder returns and which satisfy our disciplined financial criteria,” O’Hare commented.

“Driving shareholder value will always be our top priority, and as a result, we remain very disciplined as we evaluate these opportunities.”