We have an opportunity to expand our FTTH (fibre to home) project, adding to our current 47,000 lines
The opportunity is to purchase an additional 37,000 lines that were previously purchased at $110 per line in 2015. The 37,000 lines were shared between 2 partners, one of the partners would like to sell his 60% share of the business. The total payment at the time for 37,000 lines was $4,070,000 which was paid in 2015. 60% of this amount equates to $2,442,000. We are expecting him to sell this 60% share for $3,500,00.
They have been in business for 4 years and have managed to activate 23,000 lines. Of this, 20,000 lines are continuous paying subscribers with a $9 profit for each subscriber, generating a monthly revenue of $180,000. Monthly operation costs are approximately $30,000 and Delta’s monthly management fees are $10,000. Leaving $140,000 net profit a month of which 60% is $84,000 monthly ($80,000 will be used in our figures). This will provide a projected annual net profit to the investor of $960,000.
