CABLE AND MMDS television operator Chorus Communications recorded a pretax loss of €13.9 million in 2006, its last full financial year before it was merged with NTL to form UPC Ireland, writes John Collins.

Losses at the company were up from €8.8 million in 2005, largely due to a €4.3 provision against an amount owed by a subsidiary undertaking, according to accounts just filed at the Companies Office.

Revenues at Chorus grew 1.3 per cent on an annual basis to €58.3 million but operating costs ballooned 24 per cent to €74.7 million.

Ewan Dunbar, financial controller of UPC Ireland, said the accounts are for the first year following its acquisition of Chorus but before it merged the group with NTL.

"2007 was the first year when the changes and improvements in processes fully began to be implemented," said Mr Dunbar. "As per the rest of the business, there have been improvements since then."

As part of a group reorganisation in October 2007, UPC absorbed the business and assets, including employees of Chorus. Both NTL - which operates cable networks in Dublin, Waterford and Galway - and Chorus have subsequently been rebranded as UPC Ireland. Their ultimate parent is the US cable operator Liberty Global.

The 2006 accounts state that working capital "continued to be a focus for management" and the net liability position at the end of December was €25.9 million.

Cash at bank decreased by 119 per cent, with the television and telecoms provider ending the year with an overdraft of €237,308.

Chorus had 201,847 subscribers to its TV, telephone and broadband services.

Total retained losses at Chorus amounted to €60.7 million at the end of 2006. The deficit in shareholder funds at the end of the year was €45 million.

Chorus also owed €91.2 million to its immediate parent UPC Broadband Ireland, a Dutch-registered entity. The loan amount was up from €81.8 million at the end of 2005. UPC said the increase related to the beginning of a major investment in its Irish infrastructure.

Chorus had an average of 503 employees during 2006, up from 490 the year before. Wages, social welfare and pension costs came in at €17.8 million.

Chorus, and its then parent Princes Holdings, went through a period of examinership in 2004, prior to Liberty Global acquiring the 50 per cent of the company it did not own from Independent News Media.