Jazztel reports nice set of results; cuts EBITDA loss

15 Aug 2006

Spanish telco Jazz Telecom (Jazztel) posted a narrowing of its second quarter EBITDA loss to EUR38.3 million (USD48.8 million), compared to EUR45.4 million in the previous quarter, due to an improvement in operational efficiency and a climb in revenue. Revenue increased by 24% year-on-year, up to EUR77.2 million from EUR62.4 million, primarily on the back of strong broadband subscriber take-up. Jazztel ended June 2006 with 211,328 active ADSL customers, up 27% in three months, though its total number of contracted broadband users fell 1.5% to 247,816. Net loss increased to EUR58.9 million, from EUR38.6 million in 2Q2005, but the telco insisted it is beginning a trend towards profitability. Earlier this year Jazztel said it expects to see full year revenues of EUR410 million in 2006, rising to EUR690 million the following year and EUR920 in 2008, by which time it hopes to have turned its first profit.

Spain, Jazztel