Grupo Corporativo ONO, the largest cable operator in Spain, has revealed plans to axe 785 jobs as part of a cost-cutting exercise designed to save the company EUR120 million over the next five years. According to Spanish broadcaster Telecinco, the restructuring will see ONO dispense with a number of non-core services as it looks to concentrate on the provision of triple-play voice, video and internet services.
The reorganisation is designed to shore up the company’s finances following a prolonged bout of acquisitions in preparation for an initial public offering (IPO) on the Madrid stock exchange in the first quarter of 2008. The company has invested heavily to establish itself as the country’s leading alternative operator. Most notably, in July 2005 it entered into a definitive agreement to purchase rival Auna Telecomunicaciones (Auna TLC), part of the Auna Group, for approximately EUR2.25 billion in cash and shares. The deal was completed in November 2005 and ONO immediately began integrating Auna TLC’s operations into its own. The acquisition near-doubled ONO’s telephony and broadband customer bases, and the consolidated company is now the country’s largest cable operator by far.