Loss making Enet subsidiary paid €10m to Granahan McCourt last year

Telecoms company reported a rise in turnover in 2018 to €17.5m from €16.9 m in 2017

The State-backed Irish Infrastructure Fund now owns Enet

The State-backed Irish Infrastructure Fund now owns Enet

 

A subsidiary of the State-backed telco Enet incurred a one-off €4.75 million charge to Granahan McCourt, the Government’s preferred bidder for the National Broadband Plan (NBP), for ITS release from a management services agreement, latest accounts show.

This played a part in pushing Enet Telecommunications Networks into the red in 2018, with the business recording a loss of €5.96 milllion. The company had made a €1.4 million pre-tax profit in the previous year.

Enet Telecommunications Network was also charged €5.2 million by Granahan McCourt for advisory services in 2018, according to the accounts.

US telecoms magnate David McCourt, founder of Granahan McCourt, sold a controlling stake in Enet to the State-backed Irish Infrastructure Fund in August 2017 in a deal that valued the company at up to €200 million. The infrastructure fund acquired the remaining 22 per cent of the business held by Granahan McCourt last October.

Enet Telecommunications Network, whose parent E-nasc Éireann Teoranta operates the State’s Metropolitan Area Networks, reported a rise in turnover to €17.5 million last year from €16.9 million in 2017.

The company, which has no employees, was recharged just under €2 million last year by its parent for using the services of its staff. Enet Telecommunications Network owed €30.1 million to the same company at the end of last year.

Enet is reportedly one of three remaining bidders to acquire BT Ireland, which was put up for sale earlier this year.