Fibre cable decisions; Etihad soars to new levels in Dublin; Fahey’s post-Dáil life to afford him more time for business; GAA closing in on sponsor deal and the English capital is all a Bitbuzz.
Etihad's flying success story
ONE OF the few airlines to grow in the Irish market in recent years is Abu Dhabi-based Etihad.
It has carried 520,000 on its Dublin route since its mid-2007 launch and recently opened a business lounge in Terminal 2 costing $2.5 million.
Etihad flies from Dublin 10 times a week and there has been chatter that it might move to a twice-a-day schedule next year.
But its Australian chief executive James Hogan told me in Abu Dhabi last Saturday that no increase is being planned.
“Let’s work through the tough times and when the economy perks up we will look at it again,” he said. “There’ll be nothing happening in the next 24 months.”
Etihad doesn’t publish its results, but Hogan says the Irish operation is profitable at an “Ebitda level”.
“We wouldn’t have opened up a lounge if they weren’t, frankly.”
Half or more of Etihad’s traffic is using Abu Dhabi as a stop-off to Australia or Asia. “Whether it’s people emigrating to Australia, I don’t know. There’s also more Irish trade coming through the region.” Hogan praised T2 as “world-class” and suggested that it could become an “Amsterdam-type hub” for airlines. “There’s a great opportunity to act as a hub between the US, Europe and southeast Asia,” he said.
Etihad last week signed a deal with Virgin Australia that Hogan said will open up connections to 45 cities in Australia and New Zealand for Irish travellers.
“It will offer fantastic connectivity opportunities for our Irish passengers.”
Bitbuzz WiFi goes after London hotels
STELLAR RESULTS this week from Irish WiFi provider Bitbuzz, which reported a 17 per cent rise in revenues to €1.1 million.
Not bad in the teeth of the worst recession in memory.
There’s only so much juice you can squeeze from the Irish hospitality market so Bitbuzz is shifting its focus to London.
Having successfully piloted its product in a handful of hotels in the south Kensington area of the city last year, Bitbuzz is now looking to recruit three staff to help widen the footprint in what is a hugely competitive market.
“There aren’t going to be any new hotels built in Ireland in the near future so, in 2010, we dipped our toes in the London market to see if our model would work and if we could compete with the existing players,” co-founder and shareholder Shane Deasy said.
“We’ve now decided to press ahead with plans to develop a niche in the market.”
Bitbuzz has signed up the Elegant English Hotels in London, the St George and StayCity serviced apartments.
Having passed the €1 million revenue mark, Deasy is now aiming for €5 million.
“That’s what we’re trying to build towards. 2011 and 2012 will be all about building the network and hopefully then the revenues will follow.”
If it meets this ambitious target, an offer from a larger player could well be in the offing.
GAA weighs up potential sponsors
WITH THE championship season coming into view, the GAA appears to be closing in on deals with Eircom and Abu Dhabi airline Etihad to sponsor its All-Ireland football and hurling championships respectively.
I’m told that contracts have been exchanged by Eircom and the GAA, and the telco is believed to be scouting for players to front its marketing campaign.
Eircom would join Ulster Bank and SuperValu as a football sponsor, paying an estimated €1.3 million a year for the gig and probably the same again activating the sponsorship.
Etihad, meanwhile, is weighing renewing its deal for the hurling championship. Chief executive James Hogan told me last week that a decision would be made in the “next 30 days”.
“The GAA allows us to invest in the community,” Hogan said. “I think people get us now.”
Etihad recently ended its deal with Formula One giant Ferrari but the smart money is on the airline renewing with the GAA.
Telco shifts focus after Garda ruling
IT’S BEEN a mixed start to this year for telecoms equipment group Shared Access, which is backed by JP Morgan and Goldman Sachs.
The US company has been in dispute with the OPW for the past 16 months over its contract to fit masts at 375 Garda stations that are leased to mobile operators.
Shared Access wanted to fit the sites with fibre cables to allow mobile operators to run 3G and data services on the masts.
The OPW resisted and the matter went to arbitration. After a four-day hearing in December, Shared Access has been told the operators’ licences don’t allow them to run fibre cabling across Garda premises. The ruling was binding.
“We’ve got to accept the ruling and move on,” chief executive Chris Jackman told me yesterday.
“But it’s very disappointing. We think that common sense could have prevailed.”
Shared Access’s contract with the OPW runs until the middle of next year. “We will honour the contract,” he said.
Jackman has turned his focus to building a new portfolio comprising sports clubs.
Shared Access is offering to build floodlights free of charge in return for being able to use those pylons to locate telecoms equipment that is rented to mobile operators.
It started with the FAI, with 500 clubs applying for the scheme. Seven are already up and running – Rock Celtic, Cobh Ramblers, Glebe North, Oscar Traynor, Tramore Association FC and Aisling Annacoty.
Jackman has signed deals with Tennis Ireland (140 clubs), the GAA in Dublin (166) and Munster Rugby (70).
It also has deals with convenience retailer Gala and fuel supplier Topaz to use their sites which will be equipped for fibre. Meteor and 3 have signed up while talks with O2 are in train. Jackman estimates half of the sites will be developed for €30 million-plus.
“We’re now able to talk to operators with confidence that we can offer sites that meet their needs. We’re pleased with that.”
Activity slumps in Fahey firm
HAVING FAILED to get re-elected in Galway West, Fianna Fáil’s Frank Fahey, who has a large property portfolio, should have more time to devote to his business affairs.
The latest accounts for Sage Construction, in which he has a 50 per cent shareholding, indicate little or no activity in the year to the end of March last.
The only notable figures are for the directors’ loans to the company, which went from €1.8 million to zero.
The directors are Ethelle Fahey and Seán Joyce. Ms Fahey was owed €940,813 by the company at the start of the financial year and the abridged accounts indicate this was repaid.
The company booked a loss for the period of €26,543, the exact amount of shareholders’ funds that were available at the year’s outset. So at the end of the year, the company had zero by way of shareholders’ funds.
There were no creditors and the company does not appear to have had any stock since 2007.
Little things
It should be standing room only at the Royal College of Physicians on Kildare Street next week when British investment guru Guy Monsoon of Sarasin Partners holds his annual seminar here.
His message will be clear: invest in the big blue chip companies for growth and to protect against inflation.
“The big global blue chips are in rude good health,” Monsoon told me yesterday, highlighting their strong balance sheet, good margins and high dividend yields.
Monsoon particularly likes the look of BMW, Nestle, Proctor Gamble and tractor maker John Deere.
Insurer RSA must have been chuffed wtih the Irish cricket team’s shock win over England in the World Cup.
It was payback for the group’s substantial sponsorship of the sport here in recent years.
But it might not have been amused by baker Johnston, Mooney O’Brien running an ad with a picture of a toaster popping bread and the tagline: “England get toasted by [Trent] Johnston, [John] Mooney [Kevin] O’Brien” yesterday.”
Howzat for clever ambush marketing?
