Spanish regional cable operator Euskaltel increased its subscriber base and grew revenue and profit in Q1, with CEO Francisco Arteche saying that the company’s bundling strategy was paying dividends.
Euskaltel’s revenue rose 26.6% to €176.6 million for the quarter, while EBITDA grew by 23.8% to €84.2 million. Operating cash flow was up 12.3% to €50.3 million, and Euskaltel posted a net profit of €14.6 million, up 10.9%.
The company, which combines Basque Country operator Euskaltel, Asturias-based Telecable and Galician operator R, added 25,000 new contract sales in Q1, taking its revenue-generating untie base to 2.3 million.
Euskaltel said that triple- and quad-play customers now account for 68.6% of the overall base, with an average of 3.6 products per customer.
Euskaltel added 6,000 pay TV customers in the qurter, taking its base to 400,000, which was attributed to the success of its new 4K Android-based set0top box and the addition of a Netflix button to its remote control.
The company added 3,000 broadband subscribers, taking its base to 492,000, and 18,000 mobile lines, taking its overall base of mobile lines to 933,000.
Euskaltel said that its growth had been boosted by its expansion into the Navarre region, where it is selling its products over Orange’s network, although it did not break out numbers.
“We have honoured our market announcement: a net rise in new customers and growth in revenue, EBITDA and profits,” said Arteche.
Euskaltel’s management came under criticism in March from shareholder Zegona Communications, the former majority owner of Telecable. Zegona said that it was “disappointed” Euskaltel’s performance, which it claimed had resulted in a €41.5 million decline in the value of its investment.