ONO reports first ever quarterly profit; plans MVNO

15 Mar 2007

Spanish cableco ONO has reported its first ever quarterly profit, generating a net profit of EUR8 million (USD10.56 million) in the three months ended 31 December 2006, compared with a loss of EUR427 million in the same period a year earlier. For the full year ONO reported a loss of EUR39 million, narrower than the net loss of EUR466 million reported in 2005. Earnings before interest, taxes, depreciation and amortization rose almost 22% in 2006 to EUR558 million. The company expects EBITDA to rise to between EUR650 million and EUR680 million in 2007.

ONO revealed it is planning to invest EUR500 million in 2007 in the launch of a new mobile virtual network operator (MVNO) operation. ONO Chairman Eugenio Galdon said the MVNO licence will be used to give clients access to mobile and fixed networks, depending on the location. ‘We don’t want to become mobile virtual operators,’ Galdon said at a meeting with reporters. ‘What we want is to give mobility to our voice service, giving subscribers access to fixed or mobile networks depending on the location. It will be a pure convergent product.’

Spain, Grupo Corporativo ONO