Versatel Q3 revenue slips 15% y-o-y

11 Nov 2011

German fixed network operator Versatel Communications has reported its revenue for the three-month period ended 30 September 2011 dropped 15.4% year-on-year, mainly attributed to falling sales from its ‘mass market’ operating segment, the impact of lower mobile termination rates (MTRs), and the recognition of one-off wholesale revenues of EUR5.5 million in Q3 2010. Versatel said that its revenue fell to EUR154.2 million (USD209 million) in the three months ended September 2011 from EUR182.1 million in the year-ago quarter. Of that total, the majority – EUR57.4 million – was generated by the company’s ‘mass market’ segment (comprising the former retail segment and around 16,000 small business customers supplied with similar retail products), a decrease of 18% compared to EUR70.0 million the third quarter of 2010. Versatel said the fall was partly due to a drop in the number of mass market customers from 660,200 at the end of September 2010 to 582,200 twelve months later. The sale of Versatel’s cable business as of 31 July 2010, which contributed revenues of EUR8.3 million in the first half of 2010, also contributed to the decline in revenue from the mass market segment in Q3 2011. Revenue generated by Versatel’s business segment (which now excludes SoHo and SME customers) totalled EUR50.8 million in 3Q11 (up 4.9% year-on-year), while turnover from the wholesale business fell 27.8% year-on-year to EUR46.0 million, primarily attributable to voice revenues, which fell by EUR11.6 million or 28.9%. The company reported that adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 9.7% to EUR39.5 million, while the net loss widened from EUR6.2 million in Q3 2010 to EUR6.5 million twelve months later.

Germany, 1&1 Versatel