Euskatel’s ‘opada’ revenue rose 1.5% to 174.3 million in the second quarter




While the future of Euskaltel is being decided, pending the outcome of the opa launched by Másmovil on 100% of the company at 11 euros per share and whose acceptance period ends next Thursday, the Basque operator has reported that its revenues have grown by 1.5% in the second quarter of the year to 174.3 million euros driven by Virgin Telco and strength in its traditional markets (Basque Country, Asturias and Galicia). Immersed in the process of updating its fiber optic network to the home (FTTH), the company closed the first semester with an adjusted net profit of 13.4 million of euros.

For its part, the Ebitda of the teleco has returned to show positive results with growth of 1.2% to 73.9 million euros, driven by the good performance of the traditional business.

About Virgin Telco, with which Euskatel launched its national expansion in the middle of last year, the risky bet of making convergent packages more flexible does not seem to be going badly for the Basque operator: the brand has barely been a year old and already more than 122,000 customers – 98,000 in landline and 24,000 in mobile- and has contributed to the group a turnover of 15.2 million euros.

The telco run by José Miguel García (former CEO of Jazztel) has also surpassed its own brand of 863,000 customers, with more than 80,000 new registrations in the year. Which is 10.3% more than those registered a year ago. Growth based on both fixed and mobile network customers.

If analyzed by segment, the operator has had its highest growth in the mobile telecommunications in the second quarter of the year, with 171,000 new services contracted compared to the same period last year. It has also performed well when it comes to ultra-fast broadband, with 82,000 more services than in June 2020. Regarding television, it has added 7,000 new services and fixed telephony is back accumulating its second quarter of growth.

For its part, the subsector of Companies has registered the highest revenue growth in the history of Euskatel with an increase in turnover for this concept of 6% compared to the first half of last year and reaching 61.2 million euros. For its part, fiber optic network of the Basque operator It has already reached coverage of 24.5 million households nationwide – more than 6 million households added in the last year – driven by the growth of its new Virgin Telco brand.

From Euskatel, whose
board of directors
showed its unanimous support for the takeover bid launched in March by Másmovil and the result of which will be announced in the coming days, they have valued that the Basque company has achieved “Maintain strong growth in both customer base and revenue” and referred to the “success” of Virgin TElco as well as the upgrade of its cable network to FTTH (fiber optic to the home) started in the first quarter of the year, which has resulted in an accelerated depreciation of 13 million euros of these assets in the quarter.

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