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CCV - Churchill Capital V News Story

$9.98 0.0  0.1%

Last Trade - 16/04/21

Sector
Financials
Size
Mid Cap
Market Cap £496.1m
Enterprise Value £495.0m
Revenue £n/a
Position in Universe 3200th / 6850

UPDATE 1-Sky's concerns about O2-Virgin Media merger in UK addressed, says O2 CEO

Thu 25th February, 2021 10:42am
(Adds details on performance, additional quotes)
    By Paul Sandle
    LONDON, Feb 25 (Reuters) - Sky's concerns about a planned
merger between British mobile operator O2 and Virgin Media
 LBTYA.O  have been addressed, the chief executive of Telefonica
UK's O2 unit said, clearing one objection to the $38 billion
deal expected to close mid-year.
    Sky  CMCSA.O  said in a submission to the Competition and
Markets Authority (CMA) made in February it was concerned the
merger could have a significant adverse impact on competition by
harming Sky Mobile. The submission was published on Wednesday.
    "Since that time I can confirm that both organisations have
reached an agreement which addresses their concerns in full, and
the CMA is fully aware of that situation," O2 CEO Mark Evans
said in an interview after Telefonica  TEF.MC  published
full-year results.  urn:newsml:reuters.com:*:nL8N2KV1W9 
    Virgin Media is a direct competitor to Sky's pay-TV and
broadband business, while Sky uses O2's network to provide
mobile services to its customers.
    O2 expanded its customer base by 4.8% in 2020 to 36.2
million connections and added 80,000 new contract customers in
the final quarter, Telefonica's results showed.  urn:newsml:reuters.com:*:nL8N2KV1W9
    Full-year operating income before depreciation and
amortisation (OIBDA) fell 1.1% year on year to 1.834 billion
pounds, it said, reflecting the drop in revenue caused by the
COVID-19 pandemic.
    But cost control and an increase in direct sales helped
increase the margin by 1 percentage point to 30.8%, beating
analysts' expectations. 
    Evans said he was confident the merger would be cleared. "It
is a pro-competitive move, that will benefit customers and the
UK economy alike," he said.
    Evens said Telefonica and Liberty would wait until the
regulatory process had advanced further before announcing
details such as the leadership.
    Asked if he and finance director Patricia Cobian wanted to
lead the new company, he said: "There's a real appetite to play
whatever role we can in forming that organisation and taking it
to the next level."
    

 (Reporting by Paul Sandle; Editing by Estelle Shirbon and
Edmund Blair)
 ((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters
Messaging: paul.sandle.thomsonreuters.com@reuters.net))
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