14
2013
Annual Report
Euskaltel business performance in 2013
Customers and Products
With regard to landline telecommunications, Euskaltel Direct
Access lines at 2013 year end stood at 385,608, which meant,
on one hand, growth of 0.2% on amarket that steadily dropped
over the last five years (-1.5% in 2013) and, on the other hand,
improved product portfolios, with the Direct Access lines
accounting for 98.5% of the total landlines, compared to 98%
at the end of the previous year. As far as the broadband lines
contracted with Euskaltel at the end of 2013 was concerned,
they stood at 259,987, which meant year-on-year growth of
4.1%. Thirdly, with regard to Euskaltel Digital Television, as
of 31 December 2013, it posted a balance of 62,274 value
products, with a growth of 13% and the direct access customer
penetration remained at over 40%.
Therefore, Euskaltel continues to be the leading operator by
market share in landline telecommunications customers in
the Basque Country, with penetration levels in the different
businesses that are clearly higher than the first alternative
operator with its own network in Spain as a whole. Thus, in
landline telecommunications, Euskaltel co-leads the market
with a 47% market share in the Basque Country, where
Euskaltel has its own netwok, and in broadband, Euskaltel is
the leader on the Basque market with 43% of market share
and in Digital Television, Euskaltel leads the market with a
share of nearly 60%.
On the other hand, with regard to mobile telephones,
Euskaltel, ended 2013 with 362,292 active mobile telephone
lines, with a net increase of 32% in value customers (contract
customers), in a year where, yet again, and in terms of Spain
as a whole, the established operators have continued to
reduce the number of active lines in favour of the MVNOs.
Euskaltel, however, has managed to make a significant
advance increasing its market share by over 3 percentage
point and reaching 18% of the contract lines.
Revenue, results and cash flow
In 2013, the revenue market, again, continued to drop.
With respect to the previous year, it has evolved quarter on
quarter in the segments in which Euskaltel compete, with
the following variations year-on-year by quarters: -4.3% in
the first quarter,-6.3% in the second quarter and -9.2% in the
third quarter. However, Euskaltel posted operating revenue
of 324 million euros, which is a variation of only -2.8%. In
addition, Euskaltel maintained, as another of the differential
aspects in relation to other alternative operators, its high
penetration in the business segment, with its revenue
accounting for 31.3% of its total revenue.
As regards the EBITDA, Euskaltel ended 2013 with an
EBITDA of 155.1 million euros, 15,1% higher than the one
for 2012, while the other main operators posted drops
Euskaltel serves around 400,000 Basque
customers, to whom it provides 1.2
million services every day.
