Versatel sees 10% fall in Q1 residential revenue

11 May 2010

German fixed line operator Versatel Communications has reported revenue of EUR187 million (USD241 million) in the three months ended 31 March 2010, representing a 3% rise compared to the same period a year earlier. Revenue generated by the firm’s business segment rose 8.3% year-on-year to EUR53.6 million, while wholesale turnover jumped 19.1% to EUR57.9 million. However, revenue from Versatel’s residential segment fell 10.4% year-on-year to EUR75.3 million due to a fall in residential broadband subscribers from 712,000 at 31 March 2009 to 670,100 a year later. Adjusted earning before interest, taxes, depreciation and amortisation (EBITDA) totalled EUR44 million in the first quarter of 2010, down from EUR46 million in 1Q09, due to what the company called an expected fall in the residential business. Versatel’s consolidated loss widened to EUR9 million in the first three months of 2010, from EUR7 million a year earlier. ‘I am pleased with the strong performance of our B2B business in the past quarter,’ stated Versatel CEO, Alain D. Bandle, adding: ‘These results underscore Versatel’s transformation. Our proprietary network gives Versatel a unique infrastructural competitive advantage and allows us to meet demand for high bandwidths.’

Germany, 1&1 Versatel