Scarlet completes the acquisition of Tiscali N.V. in Belgium
Scarlet has completed the acquisition of Tiscali Belgium after receiving the full approval from the Belgian Competition Authority. This new addition to the acquisitive Belgian operation of Scarlet enhances the possibilities for Scarlet to operate as a full service 'Triple Play' Telecommunications company and since Scarlet already operates a substantial business in Belgium this also improves its market share substantially. As a result Scarlet will be positioned as the number two in the Belgium ADSL market, with 135,000 users.
The existing clients of the acquired operation will be offered to join the full service concept, Scarlet One, which offers the client high quality free telephony in combination with ADSL and mobile, with the aim of providing them not only better service but also a broader range of products at very competitive prices. The Board of Scarlet has expressed its view, by using the obvious synergies (Scarlet operates its own network) and applying costs savings, gross earnings of the new combination could at least double over the next 24 months.
Scarlet is confident that both operational EBITDA and net profit have developed this year according to the Board's satisfaction. 2004 has been a succesful year, in terms of growth in number of clients as well as in market share. Scarlet will continue to look for successful extensions that could enhance the speed and profitability of the recently introduced Scarlet One strategy. Scarlet is currently investigating various alternatives to further finance its expansion strategy.
