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Digiweb unit swings to €11.2m loss in 2018

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A UNIT of the Digiweb telecoms group swung to an €11.2m loss last year as it took a non-cash impairment against its subsidiaries, newly filed accounts for the business show.

The accounts for Digiweb, which is part of the bigger Digiweb Holdings Group, show that it generated turnover of €10.6m in 2018, up slightly on the €10.4m it reported a year earlier.

It recorded a €608,000 operating loss last year compared to a €674,000 loss in the previous 12 months.

But the accounts show it incurred a €10.6m impairment in the carrying value of subsidiaries last year, pushing it to the €11.2m loss for the period.

Digiweb provides voice and broadband services, and the group has acquired a number of businesses over the past number of years.

They included the purchase in 2013 of the retail assets of Belgian internet service provider Mondial Telecom.

It noted that as part of a 2018 restructuring, Digiweb bought a minority stake in Viatel companies and DHL Investments. It said the minority investments in these subsidiaries are impaired.

Digiweb acquired Viatel in 2013, subsequently expanding the business into a network of 8,400km of fibre across 12 European cities.

Digiweb sold the non-Irish infrastructure and enterprise businesses to the US-based Zayo Group in 2015 for €95m.

The broader Digiweb Group, which was founded by Colm Piercy, generated turnover of €33.7m in 2017, the latest year for which accounts are publicly available.

It made a loss of €3.8m that year.

Irish Independent