Euskaltel sets aside EUR240 million for investment over next five years

19 Dec 2011

Spanish cableco Euskaltel will spend more than EUR240 million (USD312 million) over the next five years, Telecompaper reports citing Spanish news agency EFE. The bulk of the investment is expected to be directed towards expanding the company’s own mobile infrastructure, while funds will also be used for technology upgrades and enhancing the capacity of the operator’s cable network.

As noted in TeleGeography’s GlobalComms Database, in August 2011 the Ministerio de Industria, Turismo y Comercio (MITYC) confirmed Euskaltel as one of the winners in its large-scale spectrum auction, with the operator successfully bidding EUR2.42 million for 20MHz in the 2600MHz band in Pais Vasco, with the spectrum available for immediate use. The following month then saw the regulator launch a fresh auction for unsold frequencies, in which Euskaltel again emerged with new spectrum, this time paying EUR231,634 for a 10MHz block of TDD spectrum in the 2600MHz band, again for Pais Vasco only.

As well as outlining its investment plans, Euskaltel has also revealed that it expects to e¬nd 2011 with a net profit of EUR38.4 million, representing a year-on-year increase of 17.4% percent, while it hopes to see an annual turnover of EUR333 million, up around 1%. Earnings before interest, tax, depreciation and amrotisation (EBITDA) meanwhile is forecast to reach EUR130 million for FY2011, representing an approximate 3% y-o-y rise.

Spain, Euskaltel Group (incl. R Cable and Telecable)