Jazztel revenues climb as mobile subscriber numbers surge

6 Nov 2013

Alternative Spanish operator Jazz Telecom (Jazztel) has published its financial results for the three months ended 30 September 2013, with the company reporting a 14% year-on-year increase in revenues as customer numbers continued to rise.

In the quarter under review Jazztel generated a total turnover of EUR261.7 million (USD346.5 million), up from EUR228.8 million in the corresponding period of 2012, with the telco saying that revenue growth had been mainly driven by the retail division, which registered an annual 18% increase in revenue. Fixed line retail revenues in 3Q 2013 stood at EUR170.3 million, down marginally (0.6%) from a year earlier, with a 0.9% increase in data revenues failing to offset a 9% y-o-y drop in fixed voice turnover. In the retail mobile arena, meanwhile, total turnover surged by 290% to EUR46.5 million ‘in line with the commercial success of the convergent offers’. Wholesale revenues in the quarter were EUR44.8 million, representing a 1% decrease against 3Q12.

EBITDA in 3Q13 rose by 7% year-on-year to EUR47.9 million, up from EUR44.6 million, with the EBITDA margin being 18.3%. Net profit in the third quarter of 2013 totalled EUR17.0 million, meanwhile, up 1% against 3Q12. CAPEX in 3Q13 was significantly higher than the year earlier period, with Jazztel saying it had invested EUR83.5 million in the quarter, up 326% from EUR19.6 million in 3Q12, with it noting that the increases was due to the ‘acceleration of investments in the fibre-to-the-home (FTTH) network deployment’.

In operational terms, at the end of September 2013 Jazztel’s active ADSL customer base stood at 1.385 million, having increased by 9% against the same date a year earlier, while the contracted ADSL customer base (active subscribers plus subscribers in the provisioning process) rose to 1.415 million (up 9% y-o-y). Arguably of more note, however, was the 320% annual increase in mobile subscriber numbers, with the operator having signed up close to one million such customers (993,395) at end-September 2013, up from 236,345 a year earlier. Such growth, it said, was down to the ‘commercial success of [its] convergent offers … which [had] been improved during the quarter’.

Alongside reporting its financial results, Jazztel has also confirmed the extension of its mobile virtual network operator (MVNO) agreement with Orange Espana; as per the updated contract the partnership between the pair will now be in force until 31 January 2018. Further, the revised contract also includes new products and services, including 4G LTE, with Jazztel saying there was a commitment by both parties to carry out the launch of such services ‘as soon as possible’.

Spain, Jazztel, Orange Espana (incl. Jazztel)