Telecable turns in solid results

Spanish regional cable operator Telecable has turned in solid growth in revenue and modest growth in EBITDA, with sales up 4.4% to €69.2 million and EBITDA up 1.9% to €69.2 million.

In a statement on its interim results, Telecable’s UK-based owner Zegona Communications said that the operator had continued to build momentum following a consumer price increase of €2 in January and a strong marketing push.

Zegona said “significant progress” was being made on strategic initiatives.

The UK-based investment group, led by former Virgin Media executive Eamonn O’Hare as chairman and CEO, said it was continuing to look at attractive investment opportunities across the European telecommunications and media business. Zegona earlier this year was outbid by local mobile player MásMovil in an attempt to acquire rival Spanish mobile operator Yoigo from Telia.

Zegona itself posted revenues of €70.5 million and EBITDA of €31.4 million.

“Last month we celebrated our first full year of Telecable ownership and it is pleasing to see such strong results in the first half of 2016 building on a robust finish to 2015. Telecable has a clear strategy that is delivering results with continued growth in revenue, EBITDA and cash flow. We are encouraged by the momentum in the business, underpinned by a consumer price rise and progress in growing the business and mobile segments. This performance, together with further evidence of price repair in the Spanish telecoms market and the improving economic environment, gives us confidence that Telecable will continue to deliver growth in 2016 in line with our full year guidance,” said O’Hare.

“As we look out across the European TMT landscape, we see many attractive investment opportunities. We will continue to evaluate those transactions which enhance shareholder returns and which satisfy our disciplined financial criteria. Driving shareholder value will always be our top priority, and as a result, we remain very disciplined as we evaluate these opportunities.”