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MásMóvil shoots up its income by 39% due to the integration of Euskaltel | Economy

MasMovil headquarters in Madrid.
MasMovil headquarters in Madrid.Eduardo Parra (Europa Press)

MásMóvil has shot up its service revenues by 42% in the first quarter of the year, to 670 million euros, driven by organic growth of 7% and the integration of its Euskaltel accounts. The purchase of the Basque operator has also caused net losses of 40 million euros, compared to profits of 10.4 million obtained in the same period of the previous year.

Total turnover between January and March reached 733 million euros, 39% more than in the same period of the previous year, with a gross operating profit (Ebitda) of 277 million euros, which represents an increase of 51%. . The margin on income grew by three percentage points, reaching 38%.

The company, which is yet to close its merger with Orange Spain, explains that the quarterly losses are due to a series of extraordinary items such as the deferred payment of investments for almost 90 million euros, expenses associated with the integration of Euskaltel and a negative note of 16 million euros whose reason is not specified in the results report. The firm has highlighted that it expects the impact of these factors on cash flow to disappear in coming quarters.

The operator that markets brands such as Yoigo, PepePhone, Euskaltel or MásMóvil itself, has invested 124 million euros in the first quarter and its fiber optic coverage reaches 27.2 million marketable homes between its own network and wholesale agreements, while its 5G coverage reaches nearly 900 towns. “We are very happy with the results obtained during the first quarter of the year, which makes us optimistic about reaching the objectives set for 2022”, highlighted the CEO of MásMóvil, Meinrad Spenger.

MásMóvil ended the quarter with 14.7 million customers, adding 200,000 in three months, despite the boom in offers ultra-low-cost”, of which 11.6 million are mobile lines and 3.1 million fixed broadband customers, reporting 70,000 registrations in three months, leading the national operators.

The company hopes that the exclusive negotiation process for the union with Orange Spain will end between June and July. Likewise, it is finalizing an operation to find a partner for Euskaltel’s fixed network, as well as its strategic plan for Portugal.

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