MASMOVIL Group increases its service revenue by 23% to 1,058M€, its EBITDA by 40% to 337M€ and adds more than 1M of fixed broadband and postpaid mobile customers in the first 9 months of the year

Wednesday, 30. October 2019 11:28

Closes its best quarter of the year in terms of fixed broadband and mobile postpaid with 373,000 new adds

             
MASMOVIL Group increases its service revenue by 23% to 1,058M€, its EBITDA by 40% to 337M€ and adds more than 1M of fixed broadband and postpaid mobile customers in the first 9 months of the year

  • Total revenues increased by 17% to 1,219M€.
  • 8.6M customers (+ 24%), of which more than 7.2M are mobile and 1.4M fixed broadband.
  • Reaches 22M of available households with its fiber optic offer.

Madrid, October 30th, 2019.- Grupo MASMOVIL has presented its results corresponding to the first 9 months of the year in which the Company shows that continues at record levels both in growth of its service revenues and profitability. In addition, the Group has accelerated its commercial performance, being the third quarter the best of the year in terms of attracting new broadband and mobile postpaid additions.

During the first 9 months of the year, MASMOVIL continues to increase the Group's profitability and has obtained a record EBITDA of 337M€ (+ 40%). In the first 9 months of the year, The EBITDA margin has increased from 23% in 9M2018 to 28% in 9M2019.

In the third quarter, EBITDA reached 120M€, 41% more than the same period last year, also setting a new quarterly record. The quarterly EBITDA margin has reached 28% vs. 23% in the same period of last year.

Service revenues increased 23% in the first 9 months of the year, compared to the same period of last year, reaching 1,058M€. During the third quarter, these revenues reached 370M€, an increase of 21% vs. the same period last year.

Total revenues during the first 9 months of the year were 1,219M€, 17% more than the same period of last year. During the third quarter, revenues have accelerated and reached a total of 427M€, 18% more than last year.

In the first 9 months of the year, the Company obtained an adjusted net profit of 84M€ and a net result of -21M€, due to the impact on the Group's accounting of the purchase of Providence convertible bond that does not imply cash outflow. This negative result will become a positive net result once the sale of about 1M fiber homes to an infrastructure fund for 217.5M€, which is already announced and planned to close before year end.

“We continue to maintain the excellent growth rate of recent years in both commercial and financial terms which will allow us to reach the updated guidance that we have recently communicated to the market," said Meinrad Spenger, CEO of MASMOVIL.

Significant increase in its fiber optic footprint (+52% compared to 9M2018), already reaching 22M homes

During the first 9 months of the year, MASMOVIL has continued to invest in a relevant way in the development of its own network - mainly in the fiber optic network - and in the growth of its customer base. By the end of this period, it had invested a total of 390M€, of which 195M€ has been allocated to its FTTH network.

MASMOVIL had at the end of the third quarter 22M of marketable homes with its fiber offer -13M, 60% of the total, correspond to own fiber and rights of use-, 52% more than the homes available in the same period of the past year. The rest (8.9M) are accessible thanks, mainly, to Bitstream agreements with other operators.

The MASMOVIL fiber network continues to be the fastest in Spain according to the recent report by the prestigious French consultancy nPerf, “Barometer of fixed Internet connections in Spain”, in which, after more than 800,000 tests carried out in the first half , MASMOVIL for the second consecutive year, has offered on average the best speed in Spain of downloading, uploading and latency to its fixed broadband customers.

In addition, its own mobile network and agreements with other operators allows the Group to have a 4G coverage of 98.5% of the Spanish population, the largest in Spain.

On the other hand, the Company already has 80MHz in the 3.5GHz band to offer 5G services acquired at a price close to 4 times lower than the average auction price. MASMOVIL is the operator with the largest amount of spectrum per customer in Spain, doubling the spectrum per customer of the competitors.

Commercial results: more than 1M of new fixed broadband and mobile postpaid customers obtained in the first 9 months of the year to reach 8.6M of total customers

Regarding commercial results, MASMOVIL Group continues with its excellent dynamics growing in all market segments, closing the first 9 months of the year with more than 1 million net adds brought in the period between mobile postpaid and fixed broadband.

During the third quarter, the Group reached 373,000 new adds in these segments, a record figure for the whole year. This data demonstrate that the Group's multi-brand strategy continues to offer very positive results.

Of these clients, 131,000 are fixed broadband, exceeding the number of 100,000 adds per quarter for two consecutive years, and 242,000 mobile postpaid, being the ninth quarter with a attraction level above 190,000 adds.

At the close of the first 9 months of the year, MASMOVIL had 8.6M of lines, 24% more than last year, of which 7.2M are mobile (5.4M belong to the postpaid segment, a 19 % more than last year) and 1.4M of fixed broadband, 60% more than the previous year (81% of total broadband customers are fiber optic).

The Group confirm its guidance for 2019

Taking into account the good results obtained by the Company in the first 9 months of the year, MASMOVIL confirms its guidance for the period 2019-2021:

  • 2019 Service Revenues of 1,465M€; Adjusted EBITDA of 465M€; and Capex 457M€.
  •  2020 Adjusted EBITDA of 570-600M€; Margin of 30-32%; and Capex of 295M€.
  • 2021 Adjusted EBITDA of € 670-700M; Margin of 32-34%; and Capex  of 255M€.

About MASMOVIL Group

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

The group relies on a fiber/ADSL network for broadband and 3G and 4G network for mobile telephony. At present covers 22 million fiber households and reaches 18 million homes with ADSL. The companies’ 4G mobile network covers 98,5% of the Spanish population. The Group has more than 8.6 million customers in Spain at the end of september 2019.

MASMOVIL Group has been awarded with the prize “Best fiber operator” by ADSLZone 2018  and the  “Best fiber operator by the website El Grupo Informático. In addition, it has been named  “Revelation Company” in the Business Awards of the Vocento Group.

Additionally, it is the operator with the fastest fiber network in Spain according to a study during 2019 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. Finally, it has obtained the highest score as the Spanish mobile operator best valued by customers, according to the "Customer Experience Index 2017", prepared by the consultancy Stiga.

 

Further information:

Fernando Castro +34.656.160.378
fernando.castro@masmovil.com

Closes its best quarter of the year in terms of fixed broadband and mobile postpaid with 373,000 new adds

MASMOVIL Group increases its service revenue by 23% to 1,058M€, its EBITDA by 40% to 337M€ and adds more than 1M of fixed broadband and postpaid mobile customers in the first 9 months of the year

  • Total revenues increased by 17% to 1,219M€.
  • 8.6M customers (+ 24%), of which more than 7.2M are mobile and 1.4M fixed broadband.
  • Reaches 22M of available households with its fiber optic offer.

Madrid, October 30th, 2019.- Grupo MASMOVIL has presented its results corresponding to the first 9 months of the year in which the Company shows that continues at record levels both in growth of its service revenues and profitability. In addition, the Group has accelerated its commercial performance, being the third quarter the best of the year in terms of attracting new broadband and mobile postpaid additions.

During the first 9 months of the year, MASMOVIL continues to increase the Group's profitability and has obtained a record EBITDA of 337M€ (+ 40%). In the first 9 months of the year, The EBITDA margin has increased from 23% in 9M2018 to 28% in 9M2019.

In the third quarter, EBITDA reached 120M€, 41% more than the same period last year, also setting a new quarterly record. The quarterly EBITDA margin has reached 28% vs. 23% in the same period of last year.

Service revenues increased 23% in the first 9 months of the year, compared to the same period of last year, reaching 1,058M€. During the third quarter, these revenues reached 370M€, an increase of 21% vs. the same period last year.

Total revenues during the first 9 months of the year were 1,219M€, 17% more than the same period of last year. During the third quarter, revenues have accelerated and reached a total of 427M€, 18% more than last year.

In the first 9 months of the year, the Company obtained an adjusted net profit of 84M€ and a net result of -21M€, due to the impact on the Group's accounting of the purchase of Providence convertible bond that does not imply cash outflow. This negative result will become a positive net result once the sale of about 1M fiber homes to an infrastructure fund for 217.5M€, which is already announced and planned to close before year end.

“We continue to maintain the excellent growth rate of recent years in both commercial and financial terms which will allow us to reach the updated guidance that we have recently communicated to the market," said Meinrad Spenger, CEO of MASMOVIL.

Significant increase in its fiber optic footprint (+52% compared to 9M2018), already reaching 22M homes

During the first 9 months of the year, MASMOVIL has continued to invest in a relevant way in the development of its own network - mainly in the fiber optic network - and in the growth of its customer base. By the end of this period, it had invested a total of 390M€, of which 195M€ has been allocated to its FTTH network.

MASMOVIL had at the end of the third quarter 22M of marketable homes with its fiber offer -13M, 60% of the total, correspond to own fiber and rights of use-, 52% more than the homes available in the same period of the past year. The rest (8.9M) are accessible thanks, mainly, to Bitstream agreements with other operators.

The MASMOVIL fiber network continues to be the fastest in Spain according to the recent report by the prestigious French consultancy nPerf, “Barometer of fixed Internet connections in Spain”, in which, after more than 800,000 tests carried out in the first half , MASMOVIL for the second consecutive year, has offered on average the best speed in Spain of downloading, uploading and latency to its fixed broadband customers.

In addition, its own mobile network and agreements with other operators allows the Group to have a 4G coverage of 98.5% of the Spanish population, the largest in Spain.

On the other hand, the Company already has 80MHz in the 3.5GHz band to offer 5G services acquired at a price close to 4 times lower than the average auction price. MASMOVIL is the operator with the largest amount of spectrum per customer in Spain, doubling the spectrum per customer of the competitors.

Commercial results: more than 1M of new fixed broadband and mobile postpaid customers obtained in the first 9 months of the year to reach 8.6M of total customers

Regarding commercial results, MASMOVIL Group continues with its excellent dynamics growing in all market segments, closing the first 9 months of the year with more than 1 million net adds brought in the period between mobile postpaid and fixed broadband.

During the third quarter, the Group reached 373,000 new adds in these segments, a record figure for the whole year. This data demonstrate that the Group's multi-brand strategy continues to offer very positive results.

Of these clients, 131,000 are fixed broadband, exceeding the number of 100,000 adds per quarter for two consecutive years, and 242,000 mobile postpaid, being the ninth quarter with a attraction level above 190,000 adds.

At the close of the first 9 months of the year, MASMOVIL had 8.6M of lines, 24% more than last year, of which 7.2M are mobile (5.4M belong to the postpaid segment, a 19 % more than last year) and 1.4M of fixed broadband, 60% more than the previous year (81% of total broadband customers are fiber optic).

The Group confirm its guidance for 2019

Taking into account the good results obtained by the Company in the first 9 months of the year, MASMOVIL confirms its guidance for the period 2019-2021:

    • 2019 Service Revenues of 1,465M€; Adjusted EBITDA of 465M€; and Capex 457M€.
    •  2020 Adjusted EBITDA of 570-600M€; Margin of 30-32%; and Capex of 295M€.
    • 2021 Adjusted EBITDA of € 670-700M; Margin of 32-34%; and Capex  of 255M€.

About MASMOVIL Group

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

The group relies on a fiber/ADSL network for broadband and 3G and 4G network for mobile telephony. At present covers 22 million fiber households and reaches 18 million homes with ADSL. The companies’ 4G mobile network covers 98,5% of the Spanish population. The Group has more than 8.6 million customers in Spain at the end of september 2019.

MASMOVIL Group has been awarded with the prize “Best fiber operator” by ADSLZone 2018  and the  “Best fiber operator by the website El Grupo Informático. In addition, it has been named  “Revelation Company” in the Business Awards of the Vocento Group.

Additionally, it is the operator with the fastest fiber network in Spain according to a study during 2019 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. Finally, it has obtained the highest score as the Spanish mobile operator best valued by customers, according to the "Customer Experience Index 2017", prepared by the consultancy Stiga.

 

Further information:

Fernando Castro +34.656.160.378
fernando.castro@masmovil.com

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