Pipex mulls future despite lack of suitors

18 Apr 2007

UK broadband operator Pipex has insisted that a strategic review of its future is still on track, despite speculation that potential bidders have lost interest. According to UK broadsheet The Guardian, Chairman Peter Dubens said that the review, announced last month, will be completed this summer. One option being considered is a sale of Pipex, which now has nearly 1.4 million customers following an acquisition spree during 2006. ‘Pipex and UBS continue to explore the various options available to the company and a further announcement will be made in due course,’ he said. Dubens declined to comment, however, on reports that BT, Virgin Mobile and The Carphone Warehouse had walked away from a deal.

Pipex also announced its full-year results for 2006 revealing that turnover more than doubled to GBP294 million (USD588 million), following the purchases of the Homecall and Toucan telecoms operators, and the Bulldog broadband customer base. But it made an operating loss of GBP11.5 million, up from GBP5.9 million in 2005, and pre-tax profits were down at GBP4.9 million versus GBP5.1 million a year earlier.

United Kingdom, Pipex (part of Tiscali UK)