Eircom sells home security unit
Irish incumbent Eircom Group sold its PhoneWatch subsidiary to Norway’s Sector Alarm as part of efforts to return to profitability.
The telco plans to use the proceeds of the sale to steady the ship of the parent company and aid in the goal of establishing Eircom as Ireland’s leading telecoms provider. PhoneWatch, a provider of monitored alarms, was no longer considered core to that strategy, chief executive Herb Hribar says.
“After careful consideration, the Board concluded that PhoneWatch was not a core business unit as we continue to focus on delivering superfast next generation technologies to our fixed and mobile customers. We are delighted that we have found a purchaser in the home security sector that is expanding into the Irish market and investing in Ireland,” Hribar says.
Eircom Group is currently battling falling EBITDA and revenues. In its fiscal second quarter, covering the period to end-December, EBITDA fell €10 million year-on-year to €119 million, and revenues dipped 6% to €361 million. The firm’s first quarter shows similar trends, however it did cut operating costs in both periods.