Business
EUSKALTEL RETURNS TO GROWTH
EUSKALTEL RETURNS TO GROWTH.
About this update from Zegona Communications Plc
[{"type":"text","content":"\n \n \n RNS Number : 1163E\n Zegona Communications PLC\n 26 February 2020\n \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\n 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 \n \n \n \n \n \n ZEGONA COMMUNICATIONS PLC (\"Zegona\")\n \n \n \n \n \n LEI: 213800ASI1VZL2ED4S65\n \n \n 26 FEBRUARY 2020\n \n \n \n \n \n EUSKALTEL RETURNS TO GROWTH\n \n \n \n \n Significantly Improved Operating KPIs\n Euskaltel yesterday reported its Q4 2019 and FY 2019 results, with significantly improved operating KPIs for the year. In 2019, Euskaltel grew its fixed subscribers by 9k, with 18k broadband net additions and 47k postpaid mobile net additions. This is the first year of customer growth after two years of losses. The number of products and services also grew with more convergent customers, reaching an average of almost 3.7 services per subscriber. In the B2B market, Euskaltel similarly increased its customer base materially during 2019, reaching a record high of 15.3k customers.\n \n Strong Financial Results\n Euskaltel's financial results were also strong, with revenues returning to growth in Q4 2019. Actions taken to create a single unified operational platform serving Euskaltel's multiple regional brands have already resulted in material cost savings, with SG&A expenses 11% lower. These savings, along with improvements in Euskaltel's main wholesale agreements with Orange and Telefonica, resulted in EBITDA for Q4 2019 reaching a record level of €92m, an increase of almost 8%1. This represents the second consecutive quarter of EBITDA growth. For FY 2019, EBITDA grew 2.4% to €344m and operating cash flow increased by 4% to €190m.\n \n National Expansion on Track\n Euskaltel also reported that it has increased its addressable market significantly with further roll-out of its own HFC and FTTH network (which now passes almost 2.5m homes, an increase of 7% during 2019) and through recent new wholesale network access agreements. These wholesale agreements enable Euskaltel to serve over 3m additio...