Spain: Euskaltel seeks to increase revenues by 30%
January 15, 2019
From David Del Valle in Madrid
Soon after UK’s Zegona had announced a capital enlargement of over €100 million to become the largest shareholder in the company, Basque Country-based telco operator Euskaltel has unveiled plans to increase revenue by 30 per cent to €800 million by 2022.
In its Business Plan 2022, the company forecasts that the EBITDA will reach €400 million, up 30.3 per cent on 2017. Euskaltel will break into other Spanish regions later this year aiming to capture 90,000 new customers over the next four years, representing 8 per cent of its revenues by 2022.
Euskaltel will enter Leon, Cantabria, Navarra, La Rioja and Catalonia reaching an additional 1 million homes. The company is entering into partnerships and alliances with Orange and other companies hoping to reach 10 million homes throughout Spain in the long-term.
In Navarra, Euskaltel will reach 150,000 households with a penetration rate of over 8 per cent with plans to reach 20 per cent by 2022. In Leon and Cantabria it will reach 200,000 homes thanks to an agreement with Orange. Through R, the company aims to have a 4 and 6 per cent penetration in both regions to extend up to 12 per cent by 2022. In La Rioja will reach 85,000 homes whereas in Catalonia up to 600,000 households.
Overall, Euskaltel estimates that the new territories will represent up to 8 percent of its revenues by 2022.
The CEO of the company, Francisco Arteche, said that for the company the expansion “is a natural move in our project to become one of the main telco operators” in the country.