Alternative Spanish broadband provider Jazz Telecom (Jazztel) has published its financial results for the three months ended 30 June 2013, posting a 15% year-on-year increase in revenues as customer numbers for its mobile virtual network operator (MVNO) services surged. For the quarter under review Jazztel generated a turnover of EUR256.7 million (USD335 million), up from the EUR223.8 million it recorded in 2Q 2012. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the three-month period stood at EUR44.9 million, representing a 1% year-on-year increase, while net profit totalled EUR19.9 million, up 4% against EUR19.1 million in 2Q12.
Capital expenditures in the quarter, meanwhile, more than doubled to EUR76.3 million, up from EUR28.1 million a year earlier, with Jazztel noting that the rise was the result of increased investment in the rollout of its fibre-to-the-home (FTTH) network. Jazztel is currently deploying fibre infrastructure in several cities simultaneously, including Madrid, Barcelona, Valencia, Malaga and Seville. Noting that the project was progressing ‘in a satisfactory manner in line with the estimates in the business plan’, Jazztel has said that once the network deployment has ‘achieved a certain size’, it will issue an update on the status of the rollout and forecast for the end of the year at the release of its next quarterly results.
Active broadband customer numbers increased to 1.359 million at 30 June 2013, representing an 11% increase against the 1.228 million reported a year earlier. More notable though was the rise in mobile customers, which more than tripled from 189,846 at end-June 2012 to 797,989 at the end of the latest reporting period.