Fastweb announces Q3 2020 results: 29th consecutive quarter of growth for broadband customers, revenues and margins.

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Press release 29/10/2020
For the first nine months of the year Fastweb reports 2.704 thousand customers – up 4% on the same period of 2019 – and revenues at 1.674 million Euro, (+ 6% on previous year). Margins grow too with EBITDA-aL at 529 million Euro (+5% compared to third quarter 2019). Mobile segment continues its double digits growth: 1.889 thousand customers at the end of Q3, up 14% compared to previous year.

In the third quarter of the year Fastweb keeps growing in terms of wireline and mobile customers, revenues and margins. Despite the Covid emergency, Fastweb reaches the milestone of its twenty-ninth consecutive quarter of growth, an outstanding achievement in stark contrast with the sector trends, as certified by the latest Mediobanca report according to which Fastweb "is the only operator growing in terms of revenues (+27,8%) in the 2015-2019 period, with a level of investments well above the Italian average".

From Q3 2019 Fastweb added 94 thousand new wireline broadband customers, thus bringing the customer base to 2,704 million (+4% on previous year). Revenues in the period totaled 1.674 million Euro, up 6% on 3Q 2019.

Reported EBITDA at September 30 reached 568 million Euro (+5% compared to previous year) whereas EBITDA after lease costs (EBITDAaL) reached 529 million Euro, marking a 5% increase compared to the same period of 2019.

In the third quarter of the year Fastweb confirms its commitment in technological and infrastructural investments, which totaled 410 million Euro, equal to 25% of revenues, a figure that remains stable despite the persistence of the health emergency. Fastweb participation in FiberCop, the co-investment agreement signed in August and jointly controlled by TIM, KKR and Fastweb, ensures the company a leading role in the deployment of a nation-wide FTTH network that will cover 76% of the black and grey areas of the country. At the same time, the roll out of the 5G mobile and Fixed Wireless Access networks is proceeding with the launch of the new generation services expected by the end of the year.

Fastweb keeps consolidating its leadership position also in terms of penetration of ultra-broadband connectivity services. By September 30th 1.914.000 wireline customers opted for a service with download speed up to 1 Gbs, up 18% compared to the same period of 2019, a trend supported by the strong demand of Italian families for ultra-performing wireline connections during the first months of the emergency. As of September 30th, 71% of the customer base (+9 p.p. compared to 3Q 2019), enjoys a UBB connection with download speed up to 1 Gb/s.

The Enterprise segment performed well, with revenues totalling 661 million Euro in the first nine months (+5% compared to previous year). A result that confirms Fastweb role as first alternative operator in the market of UBB services to enterprises and public administrations with a 30% share in terms of revenues.

Also, the wholesale segment did well with revenues totalling 169 million Euro in the 3Q, +22% compared to the same period of 2019 and the number of wholesale UBB lines provided to other operators growing of 34% in one year.

The mobile segment grew very well too, continuing its double-digit growth. At September 30th Fastweb had 1.889 thousand active SIMs, up 14% compared to the same period 2019 (+226 thousand SIMs in total, +59 thousand SIMs in the last quarter).

Relevant facts occurred after the closing of the quarter

On 1st of October Fastweb announced the acquisition of 70% of 7Layers, a leading society in IT security services. In line with the recent acquisition of Cutaway, a company specialized in Cloud services, the agreement reached with 7Layers is part of a wider strategy aimed at strengthening its position in the enterprise market. Alongside the supply of infrastructures for ultra-broadband connectivity Fastweb aims at progressively expanding its portfolio of services to support the digital transformation of companies and public administration.

In October an innovative agreement has been signed between Fastweb and the National Trade Unions for Telecommunications. Overcoming the traditional working model, the agreement – currently undergoing a trial phase - allows all the employees, including the customer care operators, complete flexibility and autonomy in choosing – in agreement with their supervisors - whether to work remotely or from the office any day of the week.