• EBITDA (+100%), service revenue (+20%) and customers (+25%)
  • In 2018, will invest 385€M in the development of its FTTH network and in supporting its growth in customers.
  • It has renewed its agreement with Orange and significantly improves its competitive position in the market.
  • The Company expects to maintain its strong commercial momentum in 2018 and to reach an EBITDA of 330€M (+39%).
  • It presents its mid-term objectives which forecast that it will reach between 460€m and 480€m in EBITDA in 2020.

Madrid, 28 February 2018.- MASMOVIL Group presented its 2017 results today and the Company ended the year exceeding its latest guidance in every parameter, both in sales and in finance, which makes it one of the fastest growing European operators in 2017.

Additionally, in the last quarter of the year, the Company continued to accelerate its growth, both in net acquisition of fixed broadband and mobile postpaid customers, and in EBITDA and service revenue.

Excellent Annual Results

During 2017, the Group secured excellent results thanks to the strong organic growth and the continued generation of cost efficiency derived from the synergies of integration.

In 2017, MASMOVIL Group achieved an EBITDA of 283€M, +100% than the previous year. In the last quarter of the year, the Group continued to accelerate its profitability and increased its EBITDA by 143%, reaching 70€M.

Service revenue in 2017 was 1.007€M, +20% than the previous year. Over the final quarter of the year, service revenue hit 271€M, +23% than the previous year.

Total revenue in 2017 reached 1.301€M, +16% than the previous year. In the final quarter of the year, the Company obtained 352€M total revenue, +17% than in the same period the previous year.

In 2017, the Group achieved an adjusted net result of 97€M.

The recurring EBITDA margin in 2017 was 18.3% compared to 10.6% the previous year. During the last quarter of the year, the margin nearly hit 20%.

Over the last year, MASMOVIL Group invested 221€M, mostly dedicated to develop its FTTH network and it generated 210€M of cash flow from operations.

"We are very happy with the results that the Group obtained in 2017 and for having been capable to beat the latest forecasts that were presented to the market. In 2018, we expect to continue to grow both in revenue and in customers and profitability," said Meinrad Spenger, CEO of MASMOVIL Group. "And, this year we are going to invest 300M€ to keep developing our fiber and mobile networks in order to offer the best quality of service to our customers," he added.

Accelerated Customer-Base Growth Both in Postpaid Mobile (17+%) and in Broadband Customers (313+%)

In terms of sales results, MASMOVIL Group closed out 2017 with more than 5,5M customers, 25% more than last year, of which, 5M are mobile and 504.000 are broadband.

The Group has exceeded its expectations for customer acquisition and added 946.000 new customers between fixed broadband and mobile postpaid.

Of all the mobile telephone customers, 78% belong to the postpaid segment. In 2017, the Group added 564.000 new mobile postpaid customers, reaching 3,9M, 17% more than last year. In the final quarter of last year, the Company added 190.000 mobile postpaid.

In the mobile portability market, the Group added 400.000 new customers, leading this market throughout 2017.

Regarding the broadband business, MASMOVIL Group closed the year with 504.000 customers, multiplying x4 increase the previous year. During the year, the Company added 382.000 new customers, of which 134.000 were in the last quarter, increasing the rate of broadband customer acquisition during the last part of the year.

At the end of last year, the Group had 10,4M households with FTTH (2,1M with our own fiber), more than 10 times more than it had at the end of the previous year, and 19,4M homes with access to our broadband package. Thanks to its own mobile network and its agreements with other operators, the Group has 4G coverage for 98,5% of the Spanish population.

Renewal of the Agreement with Orange

Additionally, the Group has renewed its agreements with Orange which will allow it to improve on its competitive position in the market, handle its accelerated growth, and efficiently develop the rolling out of its own fiber and mobile networks.

This new agreement includes:

  • Expanded the existing joint FTTH agreement by a minimum of 2 million incremental Business Units ("BU's") which will allow cost efficient extension of MASMOVIL's own FTTH footprint from currently 2.1 million to 6.5 million BU's over the next 2 years.
  • Modifications and improvements to the existing wholesale bitstream contract for the usage of Orange's FTTH network covering more than 8 million BU's. o R
  • Revisions to the terms of the current Site Sharing agreement including access to approximately 5,600 incremental mobile sites, giving MASMOVIL the option to cost effectively double the size of its own mobile network.
  • Improvement of terms of the existing National Roaming agreement, which has been extended.
  • Amendments to the current national Data Transmission agreement with improved unitary pricing, and reasonable minimum commitments.

It will invest 385€M in 2018, mainly in the development of its FTTH network, maintenance on its fixed and mobile networks, and strategic projects

The MASMOVIL Group has announced today a strong commitment to investment and the development of its networks, especially, the rollout of its own fiber network.

In 2018, the Group will invest a total of 385€M, of which 305€M will be dedicated to growing the Company's infrastructure. Of this amount, 210€M will go to its own fiber network with the expectation to add 3M additional households this year, and 45M€ million will go to strategic network projects that will improve MASMOVIL's competitive position. Also, the Company will dedicate another 50€M to the maintenance of its fixed and mobile networks and to IT.

Lastly, it will invest 80€M to onboard the estimated number of new clients and includes capitalized equipment, installation, logistics, etc..

Forecast for 2018

Keeping the solid evolution of the Company during 2017 in mind, MASMOVIL Group expects to maintain its business growth this year, in spite of the implementation of IFRS15, and to reach the following objectives:

  • Customers: a combined total net increase of fixed broadband lines and postpaid mobile of more than 800.000.
  • Revenue: growth in service revenue of more than 10% (>15% pre-IFRS15).
  • EBITDA: reach 330€M of pre-IFRS15 recurring EBITDA, compared to the 238€M in 2017 (+39%). The impact of IFRS15 on EBITDA is calculated at 30€M.  The post-IFRS15 estimate is 300€M.
  • CAPEX: 305€M mostly dedicated to the efficient development of its fiber network -3M homes-, to the maintenance of its networks and to strategic projects.

Mid-range Objectives

MASMOVIL has also published its mid-range objectives (3 years), and they are:

  • Continued growth of double-digit revenue up until 2020. 
  • Recurring EBITDA in 2020 between 460M€ and 480M€, which means that MASMOVIL will x2 EBITDA of 2017. 
  • Recurring EBITDA margin above 25% in 2020.

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 10,5 million fiber households and reaches 18 million homes with ADSL. The companies' 4G mobile network covers 85% of the Spanish population. The Group had more than 5.5 million customers in Spain by the end of last year 2017.

MASMOVIL received the award for the best fixed broadband operator by ADSL Zone Group, and the award for best fiber operator by the website, Informática Group, 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.