Increased broadband uptake drives Jazztel back to full-year profit

24 Feb 2011

Spanish alternative telecoms operator Jazz Telecom (Jazztel) has released its financial results for the three- and twelve-month periods ended 31 December 2010, revealing a return to profit in the full year period. With the operator having posted a net loss of EUR24.5 million (USD32.5 million) in 2009, for the twelve months ended 31 December 2010 Jazztel reported a net profit of EUR7.2 million, with the company having previously revealed a return to quarterly profit in the second quarter of the year; at that date the telco claimed 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’. For the last three months of 2010 meanwhile Jazztel reported a net profit of EUR4.8 million compared to a loss of EUR13.1 million in the same quarter a year earlier.

On the back of increased broadband subscribers the operator also revealed it had generated turnover of EUR171.9 million in 4Q 2010, up 32.3% year-on-year, while full-year revenues in 2010 were EUR615 million, up from EUR453.6 million in 2009. Earnings before interest, tax, depreciation and amortisation (EBITDA) meanwhile was EUR29.3 million in the last three months of 2010, compared to EUR15.5 million, while it stood at EUR93.6 million in FY2010, more than double the EUR40.5 million reported a year previously.

In terms of subscribers, at end-December 2010 Jazztel’s ADSL subscriber base was 847,813, up almost 65,000 quarter-on-quarter, and more than 265,000 more than at end-2009. Fixed line voice customer numbers meanwhile also continued to climb, standing at 969,421 at the end of the year, up by some 43%.

Spain, Jazztel