Jazztel’s net profit soars as revenues, EBITDA increase in 2011

1 Mar 2012

Alternative Spanish operator Jazz Telecom (Jazztel) has revealed that net income increased more than seven-fold in the twelve months to end-December 2011, in part on the back of a ‘significant’ increase in earnings before interest, tax, depreciation and amortisation (EBITDA). With net profit in the twelve-month period standing at EUR50.7 million (USD67.8 million), up from EUR7.2 million in the previous fiscal year, the telco did note that its bottom line had benefitted from ‘the accounting of corporate tax revenues arising from the utilisation of tax losses amounting to EUR12.8 million during the year’. EBITDA, meanwhile, totalled EUR139.5 million, up 49% year-on-year, with an EBITDA margin of 19%, ahead of previous forecasts. Revenues rose by 23% against the previous financial year to reach EUR753.9 million in 2011, with Jazztel noting that turnover growth had been driven by its retail division, which reported a 26% increase in revenues to EUR591.6 million.

Having released it business plans for the 2010-12 period in March 2010, including forward-looking financial guidance, in light of this year’s performance Jazztel has said it has decided to raise the forecasts for a number of its main financial indicators. Looking ahead, the telco now expects revenues of between EUR870 million and EUR900 million in 2012, up from the initial EUR850 million-EUR900 million guidance. EBITDA is forecast at EUR170 million-EUR180 million (up from EUR145 million to EUR160 million), with net profit of between EUR55 million and EUR65 million (previously EUR50 million-EUR65 million) targeted.

Operationally, Jazztel reported that its active ADSL customer base had grown by 81,663 in the last quarter of the year – its highest rate in 2011 and a significant acceleration against the previous three-month period. As a result, at end-2011 its broadband accesses totalled 1.102 million, up 30% year-on-year, with the telco claiming that growth was, in part, a result of the commercial success of its 30Mbps VDSL-based broadband service.

Spain, Jazztel