Versatel swings to loss in Q209

13 Aug 2009

German cableco Versatel Communications has posted a net loss of EUR16.7 million (USD23.6 million) in the second quarter of 2009, down from a net profit of EUR7.9 million in the same period a year earlier. Revenues for the quarter fell by 14.5% year-on-year, down from EUR211 million in Q208 to EUR180.5 million in the three months ended 30 June 2009. This decline can largely be attributed to a 35.1% drop in wholesale revenues for the quarter, down to EUR48.9 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell to EUR48.9 million, a 30.7% drop from the EUR75.3 million posted in the second quarter of 2008. The company reaffirmed its forecast of a positive free cash flow of at least EUR40 million for the full-year 2009, as free cash flow jumped 75.4% year-on-year to negative EUR3 million for Q209, up from a deficit of EUR12.2 million a year earlier. The firm ended the quarter with 709,700 broadband subscribers, adding 18,100 net new customers to the previous year’s total of 691,600.

Germany, 1&1 Versatel