Business
EUSKALTEL ANNOUNCES SECOND QUARTER RESULTS
EUSKALTEL ANNOUNCES SECOND QUARTER RESULTS.
About this update from Zegona Communications Plc
[{"type":"text","content":"\n \n \n RNS Number : 0240U\n Zegona Communications PLC\n 24 July 2020\n \n \n \n NOT FOR DISTRIBUTION, PUBLICATION OR RELEASE, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OR TO ANY US PERSON, CANADA, AUSTRALIA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA (OTHER THAN SPAIN) OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION, PUBLICATION OR RELEASE WOULD BE UNLAWFUL.\n \n \n ZEGONA COMMUNICATIONS PLC (\"Zegona\")\n \n LEI: 213800ASI1VZL2ED4S65\n 24 JULY 2020\n \n \n \n Euskaltel Reports Record Profitability and Growth\n \n Euskaltel yesterday published its results for the second quarter of 2020 and associated investor presentation. Highlights for the quarter communicated by Euskaltel included the following:\n \n Strategic Roadmap Targets Exceeded\n \n · Single efficient organisation in place - €40m annual run-rate efficiencies implemented\n \n · Record profitability - Q2 EBITDA within the traditional business of €91.8 million\n \n · Successful launch of National Expansion under the Virgin telco brand - Addressable households increased eightfold to nearly 19 million and record customer additions\n Record Customer Growth\n Euskaltel's mass market fixed customers increased by 11.3k in the quarter to 782k, with net additions of 4.8k within the traditional business and 6.5k for Virgin, the highest net additions since the company was publicly listed. The number of services delivered to customers also grew by a record amount.\n Strong Financial Results and Cash Generation\n The impact of Covid-19 on the business was limited, with growth achieved in the main financial metrics. Revenues increased year-on-year for the third consecutive quarter to €171.6m. EBITDA from the traditional business grew by 8.8% to €91.8m, driven by the cost efficiencies which have been delivered. Even after Virgin launch costs, EBITDA grew 3.7% to €87.5m. Euskaltel's operating cash flow grew over 10% to €50.9m, including the investment of €7.4m in the quarter to launch Virgin nationally, representing 29.6% of revenues.\n \n Eamonn O'Hare, Zegona's Chairman and CEO commented: \"These results demonstrate the excellent progress being made by the new management team at Euskaltel, combining a f...