neuf Cegetel reports 5.4% revenue growth in line with forecasts

6 Feb 2007

French alternative telecoms operator neuf Cegetel reported full-year revenues of EUR2.89 billion (USD3.74 billion) in 2006, up 5.4% from EUR2.75 billion in 2005, and broadly in line with market expectations. The company, which floated in October, said the results were bolstered by the acquisition of AOL’s French access business which was integrated from 1 November. According to Reuters, neuf Cegetel’s EBITDA margin reached 20% in 2H-2006 (excluding the costs of the flotation), helping it beat its target of reaching that level before the end of the year. Neuf Cegetel is France’s second largest player in the residential broadband market, and a leading provider of corporate communications services. It is backed by the Louis Dreyfus group (29.6%), and French mobile operator SFR (40.7%).

neuf Cegetel ended 2006 with 2.172 million broadband internet access customers, registering 170,000 net additions in the fourth quarter. In 2007 it aims to boost the number of residential sales by more than 40% and increase revenues from corporate services by between 5% and 10%. Neuf added that its new mobile service had signed up 100,000 subscribers by January, 75% of whom were already signed up to one of its other services.

France, neuf Cegetel