MASMOVIL Group obtains a net profit of 57M€ in the first 9 months of the year and adds a total of 1,4M of new clients

The Group continues leading the Spanish telecommunications market and exceeds 1M customer acquisition combined fixed broadband and mobile postpaid in the first 9 months of the year

MASMOVIL Group obtains a net income of 57M€ in the first 9 months of the year and adds a total of 1,4M new customers

  • The Group continues improving its profitability and EBITDA in the first 9 months of the year increases by 42% to 240M€. EBITDA for the third quarter reached 85M€ (+32%), 5M€ more than in Q2.
  • Revenue services increased by 17% to 859M€ and total revenues grew by 9% to 1.038M€.
  • The Company leads mobile and fixed portability during 2017 and 2018 and had 6.9M customers by the end of September.
  • Its fiber network exceeds 14,4M households, 4,8M with own fiber.
  • The Group upgraded its guidance for 2018 and expects to reach a recurring EBITDA of 330M€.

Madrid, October 29th, 2018.- MASMOVIL Group today presented its results for the first nine months of the year in which the Company increased profitability and continued leading the growth of the telecommunications market in Spain.

In this period, MASMOVIL Group reached a net income of 57€ and an adjusted net income of 106M€.

In addition, considering the evolution of the Company during the first nine months of the year, MASMOVIL has updated and increased its guidance to reach an EBITDA by the end of FY18 of 330M€, compared to 300M€ of the initial guidance.

MASMOVIL continue increasing the profitability of the Group in the first nine months of the year reaching 240M€ EBITDA (+42), more than 80% of full year guidance.  EBITDA margin reached 23%.

In the third quarter, EBITDA reached a new record of 85M€, 5M€ more than the previous quarter (+6%), and 32% more than the same period of the last year. EBITDA margin in the quarter has reached 23% vs 19% of the same period of the last year.

In 9M18, the Company delivered Service Revenues of 859M€ (+17% yoy). During the third quarter, service revenues reached 305M€, +16% vs the same period of the previous year.

Total revenues during the first 9 months of the year grew to 1.038M€ (+9%). During the third quarter, total revenues reached a total of 362M€, +6% vs last year.

During 2018, MASMOVIL continues making great investment efforts, and by the end of the first nine months of the year, the Company invested 312M€ mainly dedicated to the development of its own infrastructures, especially its own fiber network with an investment in this period of 179M€.

By the end of the third quarter of the year, the Company had 14,4M households covered with its fiber offer -including the agreement with Orange and the 39 provinces available with the NEBA offer-, of which 4,8M are accessible with its own FTTH network.

Considering the agreement with Vodafone that will add close to 1M households before the end of the year, MASMOVIL Group's FTTH own network reaches 5,8M households (40% of its current total footprint).

"As demonstrated by our results for the first nine months of the year, MASMOVIL continues leading the growth of the telecommunications market in Spain", said Meinrad Spenger, CEO of MASMOVIL Group.

Commercial results: leader in customer acquisition and satisfaction

In terms of commercial results, MASMOVIL Group continues leading the telecommunications market in Spain. In addition, and according to different internal studies, the Group has the most satisfied customers in Spain.

MASMOVIL Group ended the third quarter of the year with c. to 6.9M customers, 36% more than last year, of which, more than 6M are mobile (+28% vs the same period of the previous year) and 857.000 fixed broadband. 4,6M of the total mobile base are postpaid, +17% vs the end of last year.

During the first nine months of the year, MASMOVIL has grown in all segments and has added 1,4M lines, of which more than 1M combined mobile postpaid (652.000) and fixed broadband (354.000), exceeding the objective for the whole year.

During the third quarter of the year, the Group has added more 291.000 lines between mobile postpaid (190.000) and fixed broadband (101.000). In the portability market, MASMOVIL led the mobile market in the last 7 quarters and the fixed market throughout 2017 and 2018.

Upgrade 2018 guidance

Given the performance of the Company in the first nine months of the year, MASMOVIL updates and increases its 2018 guidance:             

  • Growth in Service Revenues vs FY17 from a previous guidance of more than +10% to +17% yoy (+70% increase vs previous guidance).
  • Recurrent EBITDA of 330M€ vs. previous guidance of 300M€ (30M€ increase vs previous guidance).
  • Total combined net increase in fixed broadband lines and mobile post-paid lines from previous guidance of 800k lines to 1,250k lines (+56% vs previous guidance).
  • Net Infrastructure Capex investment of 405M€ vs previous guidance of 305M€, given the increase in c1M BUs resulting from the agreement with Vodafone and the investments accounted for in FY18 on 5G spectrum.

 

About MASMOVIL Group

MASMOVIL Group is the fourth largest converging telecommunications operator in Spain that provides fixed, mobile and broadband Internet services for residential, business and Wholesale, through its main brands: Yoigo, Pepephone, MÁSMÓVIL and Llamaya.

The group relies on a fiber/ADSL network for broadband and 3G and 4G network for mobile telephony. At present, it has more than 14,4 million fiber households and reaches 18 million homes with ADSL. The companies’ 4G mobile network covers 98,5% of the Spanish population. The Group had 6,9 million customers in Spain by the end of the September 2018.

MASMOVIL received the award for the best fixed broadband operator by Grupo ADSL Zone, and the award for best fiber operator by the website, Grupo Informático, in 2017.

Additionally, it is the operator with the fastest fiber network in Spain according to a study by the company, nPerf, and the operator with the fastest 3G+4G aggregated mobile network in Spain, according to a study by the company, Tutela.

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