Forthnet’s unbundling costs drive losses upwards

16 Nov 2007

Greek alternative fixed line and broadband provider Forthnet has posted its financial and operational figures for the first nine months of 2007. Revenues reached EUR86 million (USD126 million), up from EUR73 million in 9M06, although EBITDA losses rose to EUR18 million (EUR700,000) and net losses reached EUR25 million (EUR9.4 million). Subscriber acquisition costs in the first three quarters of the year increased from EUR9.7 million in 2006 to EUR15.2 million in 2007, and nine-month CAPEX more than doubled to EUR33.9 million (EUR16.4 million). In a ‘seasonally weak’ third quarter, Forthnet added 26,427 new broadband subscribers, reaching a total of 189,267 as of end-September 2007, up from 74,672 a year earlier. The operator claimed to capture a 42% market share of Greece’s 3Q07 unbundled local loop (ULL) activations. At the beginning of June, its active ULL customer base stood at 15,280 while at the end of September that number had risen to 42,580. By the end of October the telco’s broadband subscriber base reached 200,000 with 56,560 using ULLs. Forthnet also reported that it has extended its national ULL footprint to 60% of total local loops.

Greece, Nova (formerly Forthnet)