NextGenTel reports revenue decline in 3Q17 as customer numbers fall

30 Oct 2017

Norway’s NextGenTel Holding has published its financial results for the quarter ending 30 September 2017, revealing a 6.3% year-on-year decline in revenues on the back of lower customer numbers. In the period under review the company generated turnover of NOK317.4 million (USD38.9 million), down from NOK338.9 million a year earlier. Revenues from broadband services accounted for the lion’s share of the total – 66.2% – with VoIP/fixed voice and mobile turnover representing 17.1% and 14.0%, respectively. EBITDA, however, slumped by more than 36% y-o-y to NOK35.9 million and gross profit reached NOK131.5 million, down from NOK158.1 million in the corresponding quarter of 2016; operating loss was NOK7.8 million. CAPEX in the three-month period totalled NOK18.5 million, compared to NOK29.6 million in 3Q16.

In operational terms, at the end of September 2017 NextGenTel had a total of 260,000 customers in Norway, down from 267,000 three months earlier, with losses in both the residential (down 5,800) and business (down 1,200) sectors. In the consumer market, fixed broadband accesses fell to 117,000 from 131,000 at end-September 2016, while VoIP and mobile subscriptions declined to 42,600 (3Q16: 56,000) and 38,100 (3Q16: 41,000), respectively.