Alternative Spanish broadband provider Jazztel has reported growth in turnover, EBITDA and net profit for the first three months of 2015 as the number of customers signed up to its mobile virtual network operator (MVNO) services continued to climb.
In the first quarter of 2015 Jazztel generated total revenues of EUR297.5 million (USD336 million), representing a year-on-year increase of 5%, with the operator saying that growth had been mainly driven by the success of its converged service offerings, with its retail division reporting turnover of EUR266.0 million, up from EUR237.5 million in 1Q14. By comparison, wholesale revenues totalled EUR30.8 million in the three months to end-March 2015, down 32% year-on-year, with this decline said to be due to ‘the focus of the business unit in profitability, as the division is decreasing its presence in less profitable businesses and focusing on higher margin businesses’.
EBITDA in the first quarter of 2015 meanwhile stood at EUR58.5 million, up 16% against the corresponding period in 2014, while net profit for the three months under review was EUR16.1 million, a 2% annual increase. Capital investments in 1Q15 amounted to EUR108.8 million, up 33% y-o-y, with the increased expenditure attributed to the continued acceleration of the company’s fibre-to-the-home (FTTH) network deployment.
In operational terms, Jazztel reported 1.569 million active broadband (including both ADSL and fibre) subscribers at the end of March 2015, up by 9% y-o-y; the company highlighted the fact that its contracted FTTH subscriber base totalled 211,410, representing more than 13% of its broadband accesses. In the wireless voice arena meanwhile, as at end-March 2015 Jazztel had signed up some 1.963 million subscribers, a figure representing a 45% annual increase, while also meaning the company has already surpassed its target for full-year 2015 as set out in its 2013-2017 Business Plan.