neuf Cegetel looks to mobile as losses hit EUR129 million in 2005

26 Apr 2006

French alternative telecoms operator neuf Cegetel has announced a plan to launch mobile calling services for residential users as it reported a full year net loss of EUR129 million (USD159.9 million). The company said its 2005 results were hit by goodwill write-downs and restructuring costs relating to the merger of Vivendi’s Cegetel unit with neuf Telecom. Without these, the group would have posted a net profit of EUR9 million. Revenues reached EUR 1.82 billion in 2005, and the operator signed up more than 500,000 new customers, to lift its subscriber base to 1.172 million at the year end. A further 157,000 clients were won in the first quarter of this year, it said.

neuf Cegetel plans to introduce mobile calling for residential customers, in addition to its fixed line services. It already provides both mobile and fixed line services to businesses. It will launch the new service as a mobile virtual network operator (MVNO), renting capacity from Vivendi’s SFR mobile network. It is also targeting reaching over two million ADSL broadband subscribers by the end of the year, at which date it hopes to become cash flow positive.

France, neuf Cegetel