The future of the rural broadband provider Imagine “remains uncertain” as it faces “serious” and “persistent challenges” in a difficult and uncompetitive market, the company has said.
Imagine currently has approximately 47,000 customers across mostly rural Ireland which includes small businesses, community centres and schools. The company has been under sustained pressure over the last 18 months as the rollout of the National Broadband Plan gathered pace.
The Irish Examiner understands that the company has been struggling to keep itself afloat and if something isn’t done soon 120 jobs could be lost if the company is forced to wind down operations.
When Imagine was approached for comment, a spokesperson for the company said the business is “facing serious, persistent challenges and despite a strategic review and consequent cost reductions, the situation remains uncertain”.
“The company has been proactively engaging with the Government to determine the potential for feasible solutions in order to protect customers’ broadband service. Imagine will continue to use its best endeavours to maintain customer connectivity,” the spokesperson said.
The company is understood to be having difficulty competing with the subsidised National Broadband Plan which is limiting their growth prospects and impacting the viability of the business.
Of the company’s 47,000 customers, 7,000 are in Cork with 15,500 spread across Munster.
In 2018, the Canadian investment firm Brookfield took a controlling stake in the company in a deal which valued Imagine at €200m. In the same year, the company said it would be investing €120m from Brookfield’s investment into broadband infrastructure in rural and regional areas.
However, in the last few years, the company has been struggling with the firm announcing a strategic review earlier this year.
According to its most recent financial statements, in the financial year ending December 31, 2022, the company posted a loss of €12.2m which was down from a loss of €19.9m reported in 2021.
Revenue at the company in 2022 stood at €33.8m – a slight increase from the €32.2m reported in 2021.
In February, Imagine also announced that it had sold its subsidiary Coolwave Communications – which it bought in 2007 for €18m – to the UK-based Gamma Communications.