Additions to Virgin Telco and Euskaltel Q2 2020 Group results

Before that, let’s do a brief review of some financial figures. In this quarter, the Euskaltel Group has achieved a net profit of 16.4 million euros. If we compare it with the second quarter of the previous year, in which it obtained 11 million euros, the year-on-year growth is 50%. In relation to the net profit, this has been 35.5 million euros, compared to 22.9 million in the first half of last year, which represents 55% more.

He EBITDA it stood at 91.8 million euros in the quarter, which would mean an increase of 8.8% compared to the same period of the previous year. Other financial figures reviewed in the presentation of the results indicate a 10.4% growth in operating cash flow or a reduction in net debt of 25.8 million euros.

First results after launching Virgin Telco

And now yes, we go on to review the operator’s commercial figures. Without a doubt, customer growth is one of the highlights of the quarter. From March to June they have achieved 11,300 new clients. Of these, 4,800 have gone to Euskaltel, R Cable or Telecable and 6,500 have joined the ranks of Virgin Telco. This is a large figure for just over a month on the market.

virgin telco single fiber

The Euskaltel Group already has 681,000 landline customers. At this time, coverage reaches 19 million households in Spain. However, it is a figure that will grow over the months in the carrier’s original markets (Euskadi, Galicia and Asturias), in other territories such as Navarra, Catalonia, La Rioja, Cantabria and León, in addition to the rest of Spain under agreements with third parties.

If we talk about products specifically, broadband has provided 11,000 services, pay television 8,000 services and mobile telephony 20,000 services. This goes so far that they have even won 1,000 traditional landline telephone services. This has its counterpart in the business market where the B2B customer base has exceeded 16,000 customers.

Virgin Telco Future

The beginnings of an operator are always complicated, especially when we consider that Spain has a very mature broadband market. The experience of José Miguel García, new CEO of the Euskaltel Group, plays an important asset, and that is that Virgin has come to become a real alternative to the four operators that dominate the sector. We will see if in the future there is room for five big «telcos» competing or we are again witnessing a consolidation of the market.

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