Chorus losses halved in 2004

LOSSES at cable television firm Chorus nearly halved in 2004, the year the company emerged from examinership.

Accounts just filed at the Companies Registration Office (CRO) show Chorus made an operating loss of €8.6 million down from €16.1m in 2003.

Chorus was forced to seek the protection of the High Court in early 2004 after incurring heavy trading losses from its investment in building out a digital network to offer television, internet and telephone services.

A successful restructuring saw the Limerick-based company, which has 206,000 customers, emerge from examinership in May of 2004.

The rescue package agreed between Chorus and its lenders has significantly strengthened the company’s balance sheet. Creditors falling due within one year dropped to €27.3m from €259m in 2003, while long-term debt declined to €82m from €141m.

Sole ownership of the company last year passed into the hands of American businessman business John Malone, through his Liberty Global which bought the 50% stake in Chorus owned by Independent News & Media.

“The directors are confident that following examinership the group is now positioned to deliver on its long range plan,” the company said.

Turnover in 2004 increased to €66.7m from €64.2m.

The accounts show turnover generated from the company’s telephone business halved to €1.5m with a near €4m rise in revenues from its cable television arm making up for the drop.

The decline in operating losses was helped by a fall in both administrative and operating expenses.

The financial position of Chorus should be fully secure in the coming years following the €325m takeover of NTL, which runs cable services in Dublin. That deal was cleared last week by the Competition Authority.