NextGenTel swings to a net loss in 4Q17

7 Mar 2018

Norway-based NextGenTel Holding has published its financial results for the last quarter of 2017, revealing a net loss for the three-month period, as revenues and subscriber numbers also declined. In the quarter ended 31 December 2017, NextGenTel Holding recorded a total turnover of NOK316.2 million (USD40.6 million), representing a year-on-year drop of 4.2% from the NOK330.0 million it generated in 4Q16. EBITDA was said to have been negatively affected by restructuring costs in the period under review, after the company moved to de-merge NextGenTel AS in November 2017, and to establish Proximo Norge AS as a separate legal entity to focus on end-user corporate segment. As a result, EBITDA stood at NOK34.4 million in 4Q17, down from NOK53.9 million a year earlier, while NextGenTel Holding reported an operating loss of NOK15.4 million, compared to an operating profit of NOK10.0 million in 4Q16. Meanwhile, the company swung to a net loss of NOK45.3 million in the closing three months of 2017, from a net profit of NOK6.7 million in the corresponding period of 2016.

In terms of subscriber numbers, NextGenTel Holding reported a total of 108,000 consumer broadband accesses for end-2017, down from 123,000 a year earlier, while both consumer mobile and VoIP connections were also down at 36,500 (end-2016: 40,200) and 39,100 (53,100), respectively.