Fastweb reports revenues of Euro 440 million for the first three months of the year (+3% on the previous year) and an EBITDA of Euro 131 million (+9%). Customer numbers up 6%. Investments of Euro 154 million amount to 35% of revenues. New four-year plan to bring speeds of 200 Mbps to 50% of the Italian population announced.
Milan, May 3, 2016 -In the first quarter of 2016, Fastweb consolidated its position in the Italian broadband market, boosting revenues, margins and customer numbers.
In the first quarter of 2016, Fastweb total revenues reached Euro 440 million, up Euro 11 million on Euro 429 million in Q1 2015 (+3%). Amid heightened price competition, Fastweb performed positively across all market segments: residential customers (+3% to Euro 223 million), Enterprise customers (+2% to Euro 171 million) and wholesale. The performance on the Large Business and Public Administration “VAS/ICT” market (value added services/Information Communication Technology) was highly satisfying. In particular, revenues from these services (Cloud Computing, Security and Housing/Co-location, Managed services, Unified communication) grew 26% on the first quarter of 2015.
EBITDA (earning before interest depreciation and amortisation) in the first quarter of 2016 totalled Euro 131 million, up 9% on Euro 120 million in the previous year, due to the combined effect of increased recurring margins and lower customer acquisition costs. The EBITDA margin increased two percentage points to 30%.
Fastweb also confirmed in the quarter the continued rise in the number of new broadband customers acquired, adding 40 thousand customers to reach 2.241 million total customers. Customer numbers have increased 117,000 in the past year (+6%). The expansion of customer base was driven by the success of the ultra-broadband products (up to 100 Mbps) and increased customer loyalty due to improved satisfaction levels on the basis of the speeds offered by the new network.
At the end of March 2016, 6,9 million Italian households and businesses had been connected to Fastweb’s fiber optic network (fiber to the home and fiber to the cabinet technology) in 85 cities. Fastweb fiber optic customers with connections of up to 100 Mbps numbered 680 thousand, confirming the company’s Italian leadership of the ultra-broadband market.
Since the beginning of the year, Fastweb has invested Euro 154 million - Euro 7 million more than the first quarter in 2015 (+5%) and equal to 35% of total revenues. The company announced the new four-year plan involving the investment of Euro 500 million for the extension and development of the ultra-broadband network and the increase of speeds from 100 to 200 Mbps thanks to the use of enhanced Vdsl technology, to reach by 2020 13 million households and businesses - 50% of the population. This represents the largest enhanced Vdsl development in Europe and the largest ultra-broadband European network built by an alternative operator in Europe.