(Alliance News) - Investment firm Zegona Communications PLC on Wednesday said Spanish telecommunications provider Euskaltel SA returned to customer growth for the first time in two years in 2019.
Zegona, Euskaltel's largest shareholder, said the company grew its fixed subscribers by 9,000, with 18,000 broadband net additions and 47,000 postpaid mobile net additions.
"This is the first year of customer growth after two years of losses. The number of products and services also grew with more convergent customers, reaching an average of almost 3.7 services per subscriber. In the business-to-business market, Euskaltel similarly increased its customer base materially during 2019, reaching a record high of 15,300 customers," Zegona added.
Euskaltel's fourth quarter earnings before interest, tax, depreciation and amortisation rose roughly 8% year-on-year to EUR92 million, Zegona reported, helped by wholesale agreements with Orange SA and Telefonica SA.
For the full year, Ebitda rose 2.4% to EUR344 million.
Zegona Chair and Chief Executive Officer Eamonn O'Hare said: "Euskaltel's recent results demonstrate the positive progress being made by the new management team with its sharpened focus on strengthening the existing business, driving efficiencies through creating a unified business structure and expanding the business outside of its traditional core regions.
"We are excited by the prospects for the business as it takes the next major steps forward to expand as a national operator, using the Virgin brand to provide a market leading service to customers across Spain."
Zegona shares were untraded at 104.70 pence each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Zegona Com (ZEG)