Jazztel says 2005 results likely to disappoint

4 Oct 2005

Spanish alternative telecoms operator Jazztel says its full-year results for 2005 will be lower than expected, but added it was confident that its would be back on track and hitting its targets by 2007. The company’s chairman Leopoldo Fernandez Pujals told a news conference that: ‘Financially, this year’s figure will be less than I expected, but I feel very optimistic that the 2007 targets will be fulfilled.’ Fernandez Pujals has in part blamed the company’s performance on the country’s dominant operator Telefónica, which he says has been slow to allow it access to its network under local loop unbundling. Jazztel currently has 31 complaints pending against the former monopoly operator concerning such practises. Nonetheless, Fernandez Pujals says the company is on course to have 6% of the fixed line/internet market by 2007 and annual sales of close to EUR1 billion. Jazztel is pinning its hopes on the development of ultra high speed internet access services to meet its medium-term goals. It hopes to end 2005 with more than 300,000 internet access customers. Jazztel’s business plan for the current fiscal year forecast revenues of EUR292 million and losses before interest, tax, depreciation and amortisation (EBITDA) of EUR39 million.

Spain, Jazztel