Doubts raised on Perlico worth

Trade

26 November 2007

Gotcha! But is the price too high? Vodafone Ireland CEO Charles Butterworth, left, with Perlico CEO Iain MacDonald
Industry pundits say the EUR*80m valuation put on Perlico in its acquisition by Vodafone Ireland may be too high. But Vodafone says it believes the smaller provider and the fixed-line market have sufficient potential to justify the asking price.

Perlico has about 62,000 customers, of whom 25,000 are broadband users.

After signing the Vodafone deal, Perlico terminated a deal signed in July to re-sell Three mobile packages. Instead, Vodafone and Perlico customers are likely to be offered combined mobile-fixed line bundles within a few months.
Perlico retains its name and will operate as an independent Vodafone subsidiary. CEO Iain McDonald keeps his post, and Vodafone Ireland CEO Charles Butterworth becomes chairman of the Perlico board.

 

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Butterworth told a press conference: “Over half of all voice minutes are currently carried on fixed lines, and we see a phenomenal opportunity there.”

McDonald noted that Perlico’s ambition had changed from becoming the number one challenger to Eircom to being a part of the leading telecommunications company in Ireland.

Since its 2004 launch, Perlico has seen annual revenue grow forty-fold to over EUR*40m. A net loss for this year was attributed to EUR*7m spent on boosting customer numbers.

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