Zon Optimus SGPS SA, created by combining Portuguese cable-television provider Zon Multimedia with mobile-phone business Optimus, said it’s on course to achieve savings targets and expand as it focuses on consolidating operations, rather than acquisitions.
“We just joined Zon with Optimus and that is the great opportunity,” Chief Financial Officer Jose Pedro Pereira da Costa said in a phone interview. Zon Optimus’s goal is to “materialize the benefits of that integration.”
The merger of the country’s biggest cable-TV provider and its smallest mobile-phone operator was completed in the third quarter. Pereira da Costa predicted earnings will improve after the Lisbon-based company introduced an offer last month combining Internet, television, fixed and mobile-phone services, helping it compete against rivals including Portugal Telecom SGPS SA and Vodafone Group Plc.
The new company has “excellent opportunities for growth,” Pereira da Costa said. It’s on the right path to reach the target of 45 million euros ($60.7 million) to 50 million euros in annual cost savings in the next three years, he said.
“We are confident we are on the right trajectory to achieve that target,” said Pereira da Costa. It’s too early to discuss Zon Optimus’s future dividend policy as the company is working on a strategic plan that will define, among other things, shareholder remuneration, he said.
Third-quarter revenue, including the contribution from Angolan cable-TV venture ZAP, fell 1.3 percent from a year earlier to 377.3 million euros, Zon Optimus said yesterday. Excluding ZAP, revenue fell 2.1 percent to 365.8 million euros.
The stock rose 7 percent to 5.15 euros in Lisbon trading, the biggest one-day gain since Sept. 2012.
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