Revenue From Telstra-PCCW Joint Venture Expected to Reach $4.5 Billion by 2007
quicken.com
Wednesday, December 6, 2000 08:57 PM ET
HONG KONG -- A joint venture between Pacific Century CyberWorks Ltd. and Australia's Telstra Corp. that puts together the two firms' undersea-cable assets will generate revenue of US$4.5 billion by 2007, the South China Morning Post reported Thursday.
The report also said the venture's earnings before interest, tax, depreciation and amortization, or EBITDA, will grow to US$505 million next year, and will jump to 1.44 billion Hong Kong dollars (US, news, msgs$184.6 million) in 2007.
The article cited documents that were presented to bankers who are putting together a US$2 billion syndicated loan for the joint venture.
CyberWorks spokeswoman Joan Wagner declined to comment on the figures. She only stressed that the company hasn't released any financial figures about the joint venture publicly.
The 50-50 joint venture, which becomes operational early next year, reported a pro-forma revenue and EBITDA of US$1.93 billion and US$493 million respectively, for the year ended June 30, 2000, according to previous documents issued by PCCW.
CyberWorks so far hasn't given any specific forecast on the financials of the venture, only that annual revenue will be around US$2 billion, while EBITDA will be around US$500 million.
A group of banks led by Barclays Bank and Chase Manhattan Bank have underwritten a US$2 billion loan for the joint venture.
Of the US$2 billion loan, US$1.125 billion to will go to CyberWorks and US$375 million will go to Telstra in return for their assets.
The remainder will be used to finance the venture's business, which is to manage an extensive network of submarine cables and voice and data traffic that they carry. |
