TIDMZEG
RNS Number : 5925Q
Zegona Communications PLC
01 March 2021
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ZEGONA COMMUNICATIONS PLC ("Zegona")
LEI: 213800ASI1VZL2ED4S65
1 March 2021
Euskaltel Reports Accelerating Growth
Euskaltel last week published its results for the fourth quarter
and full year 2020 and associated investor presentation. Highlights
communicated by Euskaltel included the following:
Record Customer Growth
-- Euskaltel's mass market fixed customers increased by 47k in
2020 to 716k, the highest annual customer growth since the business
was listed in 2015
-- Virgin telco growth was more than 50% ahead of plan, reaching
a total customer base (fixed and mobile) of 71k at year-end
2020
-- Net gain in B2B customers in 2020, despite the impact from Covid-19
Accelerating Revenue Growth
-- Virgin telco customer gains are driving accelerating revenue
growth, with fourth quarter revenue up 4.6% to EUR179.5m and full
year 2020 revenue up 1.7% to EUR697.1m
-- B2B is also contributing with 3.3% revenue growth in 2020 to EUR114.5m
-- Addressable footprint further expanded in the fourth quarter
to over 23m households, a four-fold increase since the start of
2020
-- Guidance provided for 2021 with mass market fixed customers
expected to grow up to 20% to 840-860k, delivering total revenue
growth up to 8% to EUR740-750m, making Euskaltel one of the fastest
growing telecoms companies in Europe
Strong Profitability
-- 2020 EBITDA target met, with EBITDA growth in 2020 of 2.3%
(before Virgin telco launch/early growth costs)
-- Euskaltel continues on a clear deleveraging path with net debt down 2.1% in 2020
-- 2020 financial and customer growth targets fulfilled
Network Upgrade and Monetisation
-- Euskaltel announced that it is well advanced in setting up
FibreCo and bringing in an investor for a minority stake - a formal
announcement is expected in the coming weeks
-- As part of FibreCo, Euskaltel will upgrade its network to the
latest FTTH standard, enabling new wholesale revenue streams, cost
savings of EUR20m per year and access to additional growth
opportunities including 5G
-- Euskaltel expects to gain a material net cash receipt from
the FibreCo process which can be used to help fund further
growth
Eamonn O'Hare, Zegona's Chairman and CEO commented: "Euskaltel
has delivered strong results for 2020 with accelerating growth
driven in particular by the outstanding success of Virgin telco.
These results demonstrate the team's achievement in overcoming the
challenges created by Covid-19 and in setting the business up for
continued and accelerating growth in 2021. The FibreCo initiative
offers the opportunity to provide customers with the very latest
technology under a structure which delivers great value to
shareholders as well".
Further details on Euskaltel's fourth quarter and full year 2020
results can be found on the Euskaltel website at
https://www.euskaltel.com/CanalOnline/investors
Enquiries
Tavistock (Public Relations adviser - UK)
Tel: +44 (0)20 7920 3150
Lulu Bridges - lulu.bridges@tavistock.co.uk
Jos Simson - jos.simson@tavistock.co.uk
About Zegona
Zegona was established in 2015 with the objective of investing
in businesses in the European Telecommunications, Media and
Technology sector and improving their performance to deliver
attractive shareholder returns. Zegona is led by former Virgin
Media executives Eamonn O'Hare and Robert Samuelson.
About Euskaltel
Euskaltel S.A. ("Euskaltel") is the leading converged
telecommunications provider in the North of Spain and has recently
expanded to offer services nationally. It provides high speed
broadband, data rich mobile, advanced TV and fixed communications
services to residential and business customers under the Euskaltel,
R Cable, Telecable and Virgin telco brands. Euskaltel is a public
company traded on the stock markets of Bilbao, Madrid, Barcelona
and Valencia.
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March 01, 2021 02:00 ET (07:00 GMT)
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