Mobile and broadband subscriber growth boost Jazztel’s revenue, net profit in 1Q14

30 Apr 2014

Alternative Spanish multi-service operator Jazztel has reported solid revenue and net profit growth in the quarter ended 31 March 2014, as the number of customers signing up for its mobile virtual network operator (MVNO) and copper- and fibre-based broadband services climbed. In the first three months of 2014 Jazztel generated a total turnover of EUR282.7 million (USD387 million), representing a 17% increase from the EUR241.7 million it recorded in 1Q13. In the fixed sector revenues were up by 1% year-on-year overall at EUR177.3 million, with a 4% increase in data revenues to EUR154.8 million in 1Q14 helping offset a drop in fixed voice turnover, which declined by 12% year-on-year to EUR22.5 million; the drop, Jazztel said, was mainly due to ‘the progressive inclusion of free fixed-to-mobile minutes in the ADSL packages’. Mobile service revenues surged, meanwhile, rising by 186% against 1Q 2013 to reach EUR60.2 million, while wholesale revenues totalled EUR45.2 million in the first quarter of 2014, stable compared to the year earlier period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at EUR50.5 million in 1Q 2014, up by 23% against EUR41.1 million in the corresponding quarter of 2013. Net profit meanwhile increased by 30% to total EUR15.8 million. Capital expenditures in the period under review were double those of the previous year – EUR81.6 million compared to EUR40.8 million – with the increase attributed to the ‘continuous acceleration of investments in the deployment of [Jazztel’s] FTTH network in recent quarters’. Nonetheless, the telco was keen to stress that investments remained below projected levels due to savings in the FTTH deployment cost, highlighting the fact that the actual cost per home passed was around 20% lower than the budgeted costs in its business plan.

As at end-March 2014 Jazztel’s total broadband subscriber base stood at 1.467 million, up from 1.356 million a year earlier, of which 25,136 were signed up to a FTTH tariff, up from 6,468 just three months earlier. Mobile subscriber growth was also notable, with such accesses rising by 144% year-on-year to 1.350 million, and surpassing the company’s target set out in its 2013-2017 business plan.

Spain, Jazztel