Broadband uptake bolsters Jazztel’s first quarter financials

19 Apr 2012

Alternative Spanish telco Jazz Telecom (Jazztel) has released its financial results for the three months ended 31 March 2012, with the company recording a 71% year-on-year increase in net profit as it continued to grow its broadband subscriber base. For the telco’s first quarter of the 2012 fiscal year it posted a net profit of EUR11.8 million (USD15.5 million), up from EUR6.9 million in the corresponding period a year earlier, on revenues that rose by 24% to reach EUR216.5 million. Jazztel noted that revenue growth in the quarter had been driven mostly by its retail division, which it said accounted for EUR173.3 million of the total, representing a 25% y-o-y increase from the EUR138.3 million turnover generated by the division a year earlier. Retail internet and data revenues, which include line rental and ADSL fees, were cited as the key driver for retail turnover growth, bolstered by rises in the ADSL customer base growth; these revenues reached EUR141.0 million in 1Q12, up 28% against the year-ago period. Earnings before interest, tax, depreciation and amortisation (EBITDA), meanwhile, stood at EUR39.2 million in 1Q12, up from EUR32.3 million in 1Q11.

In operational terms, at the end of March 2012 Jazztel’s ADSL accesses numbered 1.18 million, up 30% compared to March 2011, with the telco saying that customer growth was predominantly due to: continued strong growth in full local loop unbundled (LLU) broadband services, which it said ‘already account for almost the total growth of the ADSL customer base’; the rise in numbers of those ADSL customers subscribing to its ‘Digital+’ television services; and a reduction in churn levels.

Spain, Jazztel