7
January 2013 saw the 15th anniversary of Euskaltel’s launch
on the market. Looking back, it is no exaggeration to claim
that Euskaltel has become a driver of the Basque Project
over that time that has proven to be successful and it enjoys
a sound market and financial-economic position.
Furthermore, in the fifteen years that the project has been
up and running from 1998 to 2013, Euskaltel has continued
to strengthen its position on the market. During its first
decade of existence, that was a time of economic prosperity
(1998-2007), Euskaltel managed to position itself as the
leader on the Basque market. The total revenue from the
market shrank by 25% during the six following years of the
crisis (2008-2013). Despite that, Euskaltel has managed to
keep its 2013 revenue at a similar level as in 2007, thanks
to an increase in the subscriber services provided to the
customers, an increase that has offset the drop in prices and
consumption. Furthermore, Euskaltel has steadily improved
its net economic results over that six-year period.
In fact, Euskaltel, which competes with the main world
operators, is the leader in the Basque Country in terms
of market share in three out of its four value earning
businesses (fixed lines telephones, broadband and pay TV),
and in third place (second in the residential segment) in the
others (mobile telephones). Covering 84% of the territory
with the fibre optic network and an annual 9% return on
investment in R
&
D
&
i, Euskaltel provides 2,500 direct and
indirect jobs in the Basque Country, has contributed nearly
800 million euros to the Basque Treasury in terms of taxes
over the years, has invested nearly 1,900 million euros, made
purchases to the tune of over 2,400 million euros from 600
Alberto García Erauzkin
2013
Annual Report
Basque companies, and has sponsored over 200 sport,
social and cultural initiatives. Euskaltel is today a company
that serves nearly 400,000 Basque customers, to whom
it provides 1.2 million services a day, with the following
economic parameters for 2013: customer revenue of 321
million euros, an EBITDA of 155 million euros, investment
of 41 million euros (which will be 50 million in 2014), a net
profit of 50 million euros, and a debt ratio of 2.1 times the
EBITDA (which indicates financial soundness and additional
leverage capacity).
At the end of 2012, Euskaltel underwent a significant
shareholder restructuring, but which can be summarised as
a new configuration where all the partners have opted for
the strong continuity of the Euskaltel project.
Euskaltel’s future challenge involves continuing to grow
and consolidating its competitive position. Therefore, in
an environment of quickly changing technologies and
habits, Euskaltel needs to consolidate its technological
competitiveness and its adaptation speed to the market, by
entering into technology alliances with suppliers, local and
international leaders, which enable this goal to be met.
In that context, and with a sector immersed in “consolidation
trends”, Euskaltel aspires to play an active role within the
movements that occur in the sector.
The future lies there, and Euskaltel seeks to continue playing
a leadership role while seeking the best for its stakeholders:
its partners, its customers, its human team and Basque
society overall.
LETTER FROM THE CHAIRMAN
Alberto García Erauzkin
Chairman of Euskaltel
