Versatel posts stable Q3 revenue

12 Nov 2010

German fixed line operator Versatel Communications has announced its results for the three months ended 30 September 2010, posting revenue of EUR182.1 million (USD250 million), an increase of 0.6% year-on-year. The slight rise was driven by a 26.9% jump in wholesale revenue during the period to EUR63.7 million, helping to offset a 15.7% drop in residential sales from EUR79.9 million in 3Q09 to EUR67.4 million a year later, which the company said was due to falling customers numbers in the segment and a declining ARPU. Versatel’s earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 14% from EUR50.9 million in the third quarter of 2009 to EUR43.8 million a year later, while gross profit fell 15.3% during the same period to EUR87.8 million. Operating profit in the third quarter of 2010 totalled EUR2.9 million, a fall of 35.3% compared to EUR4.5 million in the year-ago period. Versatel said its net loss for the three months ended 30 September 2010 was EUR6.2 million, an improvement of 17.2% from a loss of EUR7.5 million in 3Q09. The company ended September 2010 with 634,100 private broadband customers, down 8.7% from 694,400 a year earlier.

Germany, 1&1 Versatel