A couple of days after the Board of Directors of the Euskaltel Group definitely approve the OPA of MásMóvil, the operator has made public its semi-annual results. Probably the last ones you register as an independent company. In fact, in the document the company acknowledges that the public offering process has caused the suspension of the FibreCo SPV concession and from the rnegotiation of certain wholesale agreements, which has had a significant impact on EBITDA and cash generation in the second quarter.
MásMóvil’s takeover bid has impacted the second quarter results
So things, Group revenues grew by 1.5% thanks to the “positive evolution of the national expansion plan, as well as the success of the customer loyalty programs implemented in 2020 in the traditional business. Said customer loyalty plans have allowed customer revenue to return to growth in the quarter, while at the same time bringing customer loyalty levels to levels prior to the pandemic, “say company sources.
EBITDA also increased 1.2% in the second quarter. This evolution has been achieved despite the suspension of the renegotiation of the wholesale agreements.
Euskaltel Group results for the first half of 2021.
The operator highlights that the cable-to-fiber network upgrade project has caused a accelerated depreciation of € 13 million of cable assets in the quarter. Without this effect, the company would have generated more than 6 million euros of net profit from April to June, which added to the 7 million euros in the first quarter, would result in an adjusted net profit of 13.4 million euros in the semester. As in EBITDA, said adjusted net profit would have been higher if the renegotiations of wholesale agreements had not been suspended.
Taking these aspects into account, the reality has been that in the first quarter the net profit was negative 2.1 million and in this second quarter with – 3.4 million. 5.5 million euros of losses in the semester.
Increase in customers
On the other hand, the Group has consolidated in the period analyzed the strong growth in its customer base, reaching a new record of 863,000 customers in the mass market, 10.3% more users than those registered in the second quarter of 2020. Of this figure, 752,000 correspond to fixed network customers, and 111,000 to users who contract only mobile telecommunications.
The success of penetration of the Group’s brand at the national level has especially contributed to this increase – Virgin telco -, in addition to the consolidation of its traditional brands – Euskaltel, R and Telecable – in their territories.
The high-value products and services contracted in the Euskaltel Group’s customer households now amount to more than 3.13 million. The services that have grown the most in the second quarter of 2021 over those of the previous year have been mobile telecommunications, with 171,000 new services contracted, and ultra-fast broadband, with 82,000 more services than in June 2020. TV grows with 7,000 new services. For its part, fixed telephony returned to the growth path in the last two quarters.
The Business market has experienced the highest revenue growth in its history, increasing significantly by 6% compared to the first half of the previous year, reaching 61.2 million euros.