Versatel 9M revenue drops 5.7%

12 Nov 2009

German fixed line operator Versatel Communications has reported a 5.7% fall in group revenue for the nine months ended 30 September 2009, to EUR543.7 million (USD815.5 million), due to the one-off signing of a long-term contract with a carrier in Germany in the second quarter of 2009 worth EUR29.7 million. Third quarter 2009 revenue amounted to EUR181.1 million, up 0.3% on the same period in 2008. The company’s residential segment accounted for the largest share of revenue in the third quarter of 2009, at 44%, while the business and wholesale segments each generated 28% of the total. Meanwhile, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose from EUR49.1 million in the third quarter of 2008 to EUR50.9 million a year later, while adjusted EBITDA for the first nine months of 2009 decreased by EUR19.9 million year-on-year to EUR141.6 million. Versatel generated a consolidated loss of EUR7.5 million in the third quarter of 2009, an improvement against a loss of EUR10.3 million a year earlier

In the residential segment, the number of broadband contracts dropped from 702,200 at 30 September 2008 to 694,400 a year later. The company attributed the fall to a change in strategy placing its primary focus on generating positive free cash flow, coupled with the removal of around 9,000 defaulting subscribers from the customer base in the third quarter of 2009. Versatel does not release broadband figures for its business and wholesale customers.

Germany, 1&1 Versatel