JazzTel losses widen

1 Mar 2004

Spanish telco JazzTel has reported a EUR201 million loss in 2003, up from a loss of EUR141 million in 2002, despite a near 5% rise in sales to EUR230 million. EBITDA fell by 83% to EUR6.8 million during the same period, which the company blamed on the provision of financial cover for its underperforming Portuguese subsidiary. JazzTel Portugal was sold in January 2004 to Jadinca, the telecoms subsidiary of SGC, an industrial holding company controlled by Portuguese entrepreneur Joao Pereira Coutinho. Under the terms of the deal, which was valued at EUR10 million, the new owner can use the JazzTel brand until the start of 2007.