Jazztel 2Q revenues up 40%, returns to profit

28 Jul 2010

Spanish alternative broadband provider Jazz Telecom (Jazztel) has posted a 40% year-on-year increase in consolidated revenue driven, it said, by continued growth in turnover from retails services. In the three months ended 30 June 2010 Jazztel recorded consolidated revenues of EUR149.5 million (USD194 million), up from EUR106.6 million in the same period a year earlier, while revenues from retail services climbed 51% y-o-y to EUR75 million, of which internet and data accounted for the lion’s share of EUR55.5 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) meanwhile stood at EUR21.1 million, up from EUR7.2 million in 2Q 2009. More notable perhaps was that Jazztel reported it had returned to profitability, reversing a EUR16.1 million loss in 2Q 2009 to record a net profit of EUR800,000; the company said that it had reached break-even point due to the ‘positive evolution of the business and the reduction of financial interests as a result of the debt restructuring in 2009’.

At end-June 2010 Jazztel’s broadband subscriber base stood at 756,858, with the operator adding 76,054 new customers during the second quarter, and representing a 59% year-on-year increase.

Spain, Jazztel