Digiweb sees return to profitability

The Irish-owned telecommunications group Digiweb returned to profitability last year despite a dip in revenues.

New accounts show the Louth-based group recorded pre-tax profits of €11.2m in 2011 after recording a pre-tax loss of €2m the previous year. The return to profit comes despite revenues declining 7% to €38.9m. The chief factor behind last year’s profit was the exceptional item of Digiweb reducing its debt by €13.3m.

In its latest accounts, Digiweb’s directors state: “The strong improvements in profitability, scale and balance sheet now positions Digiweb optimally for the next phase of organic growth and a pipeline of acquisitions are being contemplated.”

Yesterday, a company spokesman said: “Revenues, Ebitda [earnings before interest, taxes, depreciation, and amortisation], and operating profits are all double or more over 2009. Debt reduction over the two years, and further since year-end has been material.

“With the integrations completed and debt reduced we’re well positioned for the next growth and acquisition phase, and have some prospective acquisitions under review,” he added.

Digiweb has made several strategic acquisitions, such as the purchases of TalkTalk, Smart Telecom, Internet Ireland, and Novara. Job numbers have risen from 101 in 2009 to 154 today.

Established in 1997 by chief executive Colm Piercy, the company was initially focused on the area of web hosting, but has developed into a major independent telecoms player operating in Ireland, Britain, and Belgium. Digiweb supports nearly 100,000 enterprise, home, wholesale, and public sector clients.

The group’s services include broadband and data networks; cloud, virtualisation and managed services; data centre, web hosting and domain registration; telephony and voiceover IP services; and corporate and enterprise ICT solutions.

Clients include the likes of Boyle Sports, Coca Cola, Dublin City Council, Argos, the HSE, and Eircom.

On future developments, the directors state: “The group will continue to be cash generative, which will drive improved revenues and Ebitda growth.”