Zon may miss targets, no merger with Sonaecom

1 Jul 2008

The Portuguese cable operator Zon Multimedia, which was spun off from Portugal Telecom last November, has ruled out a merger with rival telco Sonaecom. Zon’s chairman, Rodrigo Costa, told local newspaper Diario Economico: ‘We are fine on our own,’, Thomson Financial reports.

Separately, Zon says it will miss its targets for operating profit and revenues this year and that it has upped spending to win new customers. The operator, which is pushing triple-play packages of phone, internet and TV services on its cable networks, has lowered its annual EBITDA growth forecast for the three years to 2010 from 12%-15% to 10%-12%. It says it expects financial growth to be stronger in 2009 and 2010 as it moves to wring higher revenues from the new customer won this year. Zon says it now has over 200,000 fixed telephone customers and it expects to win a third of all new broadband internet subscriptions in Portugal in the second quarter, in line with the first three months of the year.

Portugal, Nos, Optimus (Clix)