Virgin Media buying Arqiva hotspot business
August 30, 2016
By Chris Forrester
Virgin Media is reportedly about to close a deal to buy UK-based Arqiva’s WiFi distribution business. Arqiva, according to the FT, has some 27,000 hotspots covering hotel rooms, airline lounges and airports in Britain.
Virgin Media is also building its WiFi distribution business and, for example, operates the WiFi system on London’s Underground metro system. Arqiva itself moved into WiFi when it bought Spectrum Interactive back in 2012 for £23.4 million (€27.4m). It has since expanded the business to include banks, local authorities, pubs & restaurants and retail locations.
Arqiva has for some time been looking to dispose of non-essential business divisions.
Arqiva WiFi Ltd reported 2015 (12 months to June 30) revenues of £21.06 million, which after costs and expenses turned into a loss for the year of £8.4 million). The previous year had seen revenues of £15.5 million and a reported loss of £3.8 million.