Oireachtas Joint and Select Committees
Wednesday, 5 June 2019
Joint Oireachtas Committee on Communications, Climate Action and Environment
National Broadband Plan: Discussion
I will not make assumptions because I do not have the financial model in front of me. If the figure, hypothetically, is 12%, on the initial capital, the company would achieve a profit of €525 million over the 25 years, if my very simple business school accounting is correct. If retained earnings are ploughed back in and investment continues as a growing capital asset value, the company would make a profit of €2.975 billion from the venture, assuming a 12% return on investment. We do not know exactly how much of that will be retained earnings, but the profit that would accrue to the entity delivering this project would be between €500 million and €3 billion. That is a fair assumption.