Versatel revenues rise in Q2, but EBITDA falls on restructuring charges

9 Aug 2006

Alternative telecoms operator Versatel, which provides services in the Netherlands and Belgium, posted a 12% year-on-year rise in revenues to EUR104.5 million (USD134.1 million) for the three months 30 June 2006, although EBITDA dipped to EUR6.6 million from EUR17.5 million, as a result of a EUR6 million restructuring charge relating to marketing and development costs for its new TV service. Net losses reached EUR34.8 million, up from EUR0.5 million a year earlier. The latest results do not include Versatel’s operations in Germany, which were sold last year as part of Tele2’s takeover of the company.

Versatel’s Dutch operation reported 96,300 residential triple-play subscribers at the end of the period under review, including 84,600 over ADSL2+ and 11,700 over satellite. Meanwhile, residential DSL subscribers rose by 12,200 to 193,000, helping drive revenues to EUR79.4 million, up from EUR74.6 million a year ago. The group’s Belgian subsidiary posted a 35% rise in turnover to EUR25.1 million, but EBITDA losses of EUR1.5 million, as a result of higher marketing costs, reversed a profit of EUR2.6 million in 2005. Residential DSL users rose by 8,000 in the quarter to 78,000.

Belgium, Netherlands, Tele2 (a brand of T-Mobile Netherlands)