Euskaltel, R and Telecable make up the leading telecommunications group in the north of Spain
Bilbao, 26 July 2017. Euskaltel has today finalized its acquisition of 100% of Telecable's capital, completing the process to become the leading telecommunications group in the north of Spain. The transaction takes place following ratification at the Group's General Shareholders' Meeting held on 26 June and approval by Spain's competition authority (CNMC).
This transaction represents a significant milestone in the companies' history and the industry itself. It marks the creation of Spain's leading convergent, fibre optic, telecommunications operator in the north. The transaction provides the Euskaltel Group, and each of the brands that comprise it, greater strength, efficiency and growth capacity within the highly competitive telecommunications industry.
By approving the acquisition of Telecable, the main operator in Asturias, the objective set by Euskaltel following its flotation on the stock market to become the leading convergent operator in the north of Spain has been met. This acquisition is a completely strategic move, involving the integration of the three most important convergent operators in the north of Spain into the same Group.
A year and a half after the integration of Euskaltel and R, Telecable joins the leading telecommunications group in the north of Spain, which will now provide services to 6 million people, increasing the Group's market by 20%, offering 2.4 million services on a daily basis to over 800,000 customers, with a high penetration rate (67%) of 3 and 4 products among its customer base.
The three markets in which the Group operates - the Basque Country, Galicia and Asturias-, together represent 12.76% of the population and 13.34% of Spain's total GDP.
From a financial perspective, consolidating results increases the Group's income to €711 million (+24%), with Ebitda at €346 million (+23%) and cash flow of €224 million (+21%), maintaining one of Europe's highest cash generating ratios in the industry.
The resulting group will hold on to the local character of Euskaltel, R and Telecable in the Basque Country, Galicia and Asturias, respectively, allowing for the continuity and strengthening of their brands.
Following this transaction, the debt ratio will be 4.5 times Ebitda (including synergies), allowing the Group to continue its shareholder remuneration policy under the terms announced to the market. Furthermore, Euskaltel expects this ratio to drop to 4 times Ebitda (including synergies) at the end of 2018, as reported.
This transaction completes the key consolidation of cable services in the north of Spain. Euskaltel, R and Telecable are all leaders in their markets and the joining together of the three main operators in the north creates Spain's leading group. This move is undertaken with a commitment to hold on to the values of each company, such as their brands and human talent, as these elements are the key to their success.
This combination of operators will benefit customers, employees and suppliers, as the three companies share a strong and resolute commitment to customer care, quality and innovation in products and services.
Euskaltel - Komunikazioa
94-4011229
komunikazioa@euskaltel.com