Record in the first half of the year: 715.000 combined mobile postpaid and broadband lines net adds, 90% of the full year guidance
MASMOVIL Group achieved 38M€ net income
in the first semester and keeps the leadership in client acquisition of the spanish market
- EBITDA reached 155M€ (+49%) and EBITDA margin increased to 23%. 80M€ EBITDA for second quarter (+36% vs 2Q17).
- Service revenues increased +17% and total revenues +11%.
- 6,5 million customers (+34%), 5.7M mobile and 760.000 fixed broadband.
- +500.000 net adds in the second quarter, new net add record.
- 13M FTTH households with an important increase in own fiber network.
- MASMOVIL reiterates its FY18 guidance and will provide an updated 2018 outlook prior to or concurrently with the release of the 3Q18 results.
Madrid, July 26th, 2018.- MASMOVIL Group has presented today its results for the first half of the year -the best in its history- where the Company continue leading the client acquisition in the spanish market and expanding its own fiber and mobile networks.
As a result of the first half performance, the Company 1H18 net income was positive at 38M€ and the adjusted net income reached 71M€.
Sustained organic growth
MASMOVIL continue increasing the profitabilty of the Group and reached 155M€ EBITDA (+49%) in the first semester of the year, more than half of full year guidance. EBITDA margin reached 23%.
In the second quarter, EBITDA reached 80M€ (+36% vs 2Q17). EBITDA margin achieved 24%, from 22% of the previous quarter and 19% of 2Q17.
In 1H18, the company delivered service revenues of 554M€ (+17% yoy). Service revenues increased from 245M€ in 2Q17 to 289M€ in 2Q18 (+18% yoy).
Total Revenues grew to 676M€ in the first semester (+11% yoy). Total Revenues grew to 339M€ (+8% yoy) in the second quarter.
"We continue to maintain an excellent growth dynamic of our business. Our commitment is to continue leading customer satisfaction in Spain and continue to develop our own infrastructure of fiber and mobile network" said Meinrad Spenger, CEO of MASMOVIL.
Own FTTH network important increased (+22% vs 1Q18)
During 2018, MASMOVIL continued investing in an accelerated way in the development of its own networks, mainly in the fiber optic network, and by the end of the first half of the year it had invested a total of € 247M, of which, c. 67%, were dedicated to FTTH.
MASMOVIL grew its FTTH footprint to 13M BU’s as of 1H18, of which 4,5M correspond to own FTTH network by the end of June (+22% vs 1Q18). An additional 8.4 million BU’s are accessible through the bitstream agreement with third parties (mainly Orange), as well as BU´s available for commercialization through Telefonica NEBA.
Best quality FTTH network.
According to nPerf, MASMOVIL led a survey of Spanish FTTH networks, beating its peers in download/upload speeds, as well as in latency.
Acquisition of 5G spectrum in the 3.5GHz band to total 80MHz
During the second quarter the Company acquired 40MHz with national coverage in the 3.5GHz band by purchasing Neutra Nework Services.
Additionally, MASMOVIL has signed in 3Q18 an agreement with Eurona Wireless Telecom, for the acquisition of another 40MHz with national coverage in the 3.5 band.
As a result of these two transactions, MASMOVIL has acquired a total of 80MHz spectrum in the 3.5GHz band, at less than 30% of auction price. MASMOVIL has double 5G spectrum capacity/client vs. competition.
Ongoing client growth: 715k combined mobile postpaid and broandband lines net adds, 90% of FY18 net adds target already achieved.
MASMOVIL Group continues its strong growth trajectory and closed first half of the year with 715k combined mobile postpaid and broandband lines net adds, 90% of FY18 net adds target already achieved.
In 2Q18, the Company added +315k combined mobile post-paid (+205k) and BB (+110k) lines. MASMOVIL set a new record with 500k net adds -including prepaid- in this quarter.
By the end of 1H18, the Group had 6.46M total lines (+34% vs 1H17), 5,7M mobile customers and 760k fixed broadband.
Confident in achieving 2018 guidance
After the strong performance during the second quarter, MASMOVIL continues to be confident in achieving or exceeding its 2018 guidance:
- Achieved c.90% of the target of >800k total combined net increase in fixed broadband and mobile post-paid lines.
- 1H18 Service Revenue growth of 17% compares to the guidance of >10%.
- With 155M€ 1H18 Recurrent EBITDA, the Company achieved >50% of the guidance of 300M€ Recurrent EBITDA for the full year 2018.
- Net capex of 194M€ in 1H18 compares to the guidance of c.305M€ of Net Capex infrastructure investment related to the current FTTH network deployment plan, maintenance capex and capex devoted to strategic projects. Already delivered 80% of the incremental BU’s targeted for 2018.
MASMOVIL will provide an updated 2018 outlook prior to or concurrently with the release of the 3Q18 results.
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 13 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 6,5 million customers in Spain by the end of june.
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.
For more information:
Fernando Castro +34.656.160.378
fernando.castro@masmovil.com