Jazztel revenues rise in 2Q14 as mobile subscriber surpass 1.5m

29 Jul 2014

Alternative Spanish telecoms provider Jazz Telecom (Jazztel) has revealed that it now has more mobile voice subscribers than broadband accesses, having recorded a 93% year-on-year growth in the former in the year to end-June 2014.

In publishing its financial results for the quarter ended 30 June 2014 Jazztel confirmed that its mobile subscriber base stood at 1.543 million at that date, up from 797,889 a year earlier, a figure which the operator said significantly exceeded the year-end target set as part of its 2013-2017 business plan. It said the continued growth in mobile subscribers was ‘due to the continued effort to migrate customers to convergent services, which increases customer loyalty and reduces the churn rate of the customer base’. Meanwhile, in regard to its fixed line operations, at end-June 2014 Jazztel had a total of 1.483 million broadband subscribers, representing a 7% year-on-year increase, while of that total it noted that 60,697 were signed up to a fibre-to-the-home (FTTH) service, up by 35,561 in the quarter. The acceleration in FTTH service growth was, the telco said, in line with the increased network coverage and it expects to see a continued increase in uptake as the network deployment expands. According to Jazztel, the number of deployed FTTH homes (horizontal and vertical deployment completed) was 2.207 million homes at the end of the reporting period, in line with its FTTH deployment projections in its business plan.

In financial terms, in the second quarter of 2014 Jazztel generated a total turnover of EUR295.0 million (USD405 million), up from EUR256.7 million, driven by the retail division, which grew by 21% to EUR253.2 million. Earnings before interest, tax, depreciation and amortisation (EBTIDA) stood at EUR53.8 million in the quarter, representing a 20% year-on-year increase, while net profit totalled EUR25.0 million, up from EUR19.9 million. Capital expenditures in the period under review were EUR87.5 million, 15% more than in 2Q13, as a result of ‘the continuous acceleration of investments in the deployment of the FTTH network’; Jazztel did note, however, that investments continued to be below its projections, with cost savings meaning the actual cost per home passed is approximately 20% below the budgeted cost in its business plan.

Spain, Jazztel