Fastweb net loss narrows, revenues reach EUR 1.07 bln (Italy)Swisscom subsidiary and Italian broadband network operator Fastweb saw its revenues for first nine months of this year grow by 19 percent to EUR 1.068 billion, compare with the same period in 2006. Business revenues amount to 58 percent of the total, while consumer revenues amounted to 42 percent. The third-quarter revenues were EUR 353.8 million, up 11 percent from EUR 319.1 million in the third quarter of 2006. Consolidated EBITDA in the first nine months was grew by 48 percent year-on-year to EUR 317.4 million, while excluding the positive net impact of the extraordinary items booked in the second quarter of this year (EUR 43.5 million), organic EBITDA was EUR 273.9 million, 28 percent more than in the same period last year. The consolidated EBIT profit amounted to EUR 37.6 million compared with an EBIT loss of EUR 72.6 million in the first nine months of 2006. For the first nine months, Fastweb reports a consolidated net loss of EUR 33 million, a 49 percent improvement compared with EUR 64.2 million during the same period last year.
Fastweb’s customer base grew by 55,800 during the third quarter to reach 1.25 million on 30 September. The growth was high in September, due to Fastweb’s re-shaped offer, simplifying and updating its tariffs and making Fastweb TV available also on a stand-alone basis. Fastweb residential ARPU decreased 2 percent quarter on quarter to EUR 733.
In light of the company’s decision to focus on higher-margin core activities and to limit the contribution of low-margin wholesales business, 2007 full year revenue guidance is set at approximately EUR 1.45 billion, 15 percent more than in 2006 and the full year EBITDA guidance is approximately EUR 480 million (+59% on 2006). This includes EUR 43.5 million extraordinary items booked in the second quarter and is based on the same assumptions regarding termination rates that were incorporated in the previous guidance.
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