Jazztel losses narrow on the back on rising revenues

8 May 2009

Spanish fixed line and broadband operator Jazz Telecom (Jazztel) has released its financial results for the three months ended 31 March 2009, reporting a 27% rise in revenues against the same period a year earlier. Jazztel posted revenues of EUR101.6 million (USD135.6) for the three-month period, up from EUR79.9 million at end-March 2008. The operator said that revenue growth had been driven by its retail operations, most notably its residential services, revealing that revenues from internet and data services has risen 50% year-on-year to EUR54.6 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) meanwhile surged to EUR5.9 million for the quarter, up from just EUR300,000 in 1Q 2008 and almost surpassing the company’s full year 2008 EBITDA of EUR6.2 million. As a result of the improved performance, Jazztel’s net losses narrowed to EUR16.2 million for the three-month period, compared to EUR24.2 million a year earlier.

The operator also reported that active subscribers to its broadband services increased by 41,510 during the quarter, taking the total to 416,120. Jazztel reiterated its target of between 470,000 and 510,000 broadband subscribers by end-2009.

In separate but related news Jazztel announced that has expanded its ADSL2+-based Anexo M pilot service to Zaragoza; the service allows subscribers to the operator’s 20Mbps downstream service to achieve upload speeds of up to 2.5Mbps. Customers are able to modify their upload and download speeds via Jazztel’s self-service portal. Beta trials of the service were launched in February this year, with 500 volunteers taking part, and Jazztel plans to launch the service commercially by the summer.

Spain, Jazztel