Spain’s Euskaltel Group, which includes the Euskaltel, R, Telecable and Virgin telco brands, saw record customer growth in the third quarter.
In its latest set of results, the group says that Virgin telco’s entry onto the market has exceeded all expectations. In Q3, the first full quarter since it was launched, the new national expansion brand has grown by around 30,000 customers -21,000 fixed-line and almost 9,000 mobile c- and is about to exceed the growth targets set for the end of the year.
In total, since its launch on May 20 up to September 30, Virgin telco has already achieved 27,000 fixed-network customers, when the business plan target for 2020 is to hit 35,000 users. Adding fixed-line and mobile customers together, Virgin telco now has a total 38,000 customers, which it has achieved in just four months on the market.
Through a policy of flexible products and services allowing customers to decide how they combine them, Virgin telco has grown week by week since its launch. In total, the Euskaltel Group already has over 800,000 mass market customers. The majority (695,000) of these are fixed network and 106,000 are customers with mobile contracts only.
This solid growth in Virgin telco’s customer base, as well as continued positive growth in the traditional business, led to a sharp increase in revenue, hitting €174.2 million, up 1.8% on the €171.1 million recorded in Q3 2019. This is the fourth consecutive quarter of revenue growth compared to the prior year and the company’s biggest growth in revenue in recent years.
Virgin telco’s revenue grew to €3 million in the quarter, in line with its strong customer base growth which is expected to continue this upward trend over the coming months. Furthermore, revenue from the company’s traditional business also saw positive growth of 0.1% .
In the first nine months of 2020, EBITDA rose 3.2% compared to the same period last year, up to €260.2 million at 30 September.
Euskaltel Group’s net result for the year as of 30 September was over €52 million, 24.5% more than the €41.9 million recorded on the same date last year.
Meanwhile, Euskaltel’s fibre-optic network now covers over 20 million homes.
