Salt topline hit by MVNO migration

24 May 2019

Full-service provider Salt has reported total revenue of CHF238.8 million (USD237 million) for the first three months of 2019, down by 3.9% year-on-year, due in part to the end of two MVNO hosting contracts. Salt’s agreements with MVNOs UPC and Coop Mobile ended in January 2019, combining to impact the operator’s revenue and EBITDA by CHF7.1 million and CHF6.7 million, respectively. Nevertheless, EBITDA for the period was up 10.0% to CHF121.7 million from CHF110.6 million in Q1 2018. Free cash flow for the period was CHF50.6 million, up from CHF5.6 million twelve months earlier.

Salt recorded a 4.2% y-o-y dip in its mobile user base as it continued to shed pre-paid customers – down 12.4% to 596,000 – in favour of contract subscriptions, which grew by 0.4% to 1.228 million. The operator noted that the end of its MVNO deal with Coop accounted for around 17,000 net post-paid disconnections, offsetting quarterly net additions of 9,000 from its core brand. Salt is yet to report operational data for its fibre broadband services, but the operator noted that it had increased coverage by 100,000 households since the service was launched in March 2018.

Switzerland, Salt (Switzerland)