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MASMOVIL begins trading on the Main Stock Exchanges of Spain and announces first quarter results(July 14, 2017)
- MASMOVIL becomes the first company to move from Spain's junior market (MAB) to the main stock exchange.
- The Company was founded 11 years ago and has evolved to become the 4th largest telecommunications operator in Spain.
- In the first quarter of 2017, the Company achieved exceptional commercial and financial results with Service Revenues growing 17% and Adjusted EBITDA growing 128% versus Q1 2016, respectively.
Madrid, July 14th, 2017.- MASMOVIL (MAS.MC) announced today that it will begin trading on the Official Stock Exchanges (Main Market) of Madrid, Barcelona, Bilbao and Valencia. This is a new milestone in the Company's history.
MASMOVIL is the first Spanish company to migrate from Spain's junior market (MAB) to the Main Market. This transition is occurring just 5 years since its listing on the MAB in 2012. While listed on the junior market, the share price of MASMOVIL has grown dramatically and the Company's market capitalization is now in excess of 1.2 billion euros. The Company also completed two capital increases of approximately 180 million euros, the largest in the history of the MAB.
MASMOVIL was co-founded by CEO Meinrad Spenger in 2006. It began operations as a mobile virtual network operator two years later. Since then, it has evolved to become the 4th largest telecommunications operator in Spain with nationwide mobile and fixed telephony networks and services more than 4.6 million customers as of Q1 2017.
The own mobile network covers 85% of the Spanish population with 4G and the fixed broadband network reaches 18 million homes of which 7 million based on fiber technology. The company continues to invest in expanding its fiber footprint and is targeting 10 million households by the end of 2017, an increase of 33%.
Mr. Spenger noted that "The migration from the MAB to Spain's Main Market is the natural next step for MASMOVIL given the increase in the scale of our business and the growth in our market capitalization. Our objective now is to continue to create value for our customers, shareholders and the telecommunications market in general in Spain".
Expected benefits from listing on the Main Market
The main expected benefits from listing on the Main Market for MASMOVIL are:
- Expanded interest in the Company from national and international institutional investors due to increased secondary market liquidity. Over time this should provide greater access to capital for MASMOVIL when and if needed.
- An expanded base of independent equity research coverage from leading global investment banks and research houses, thereby providing additional insights and information to the Company's shareholders.
- Expanded and more frequent presentations regarding the Group's financial results than normally provided by companies listed on the junior market.
First quarter results
MASMOVIL released its financial results for the first quarter of 2017 yesterday evening. Service revenues grew by 17% to 228 million euros when compared to the prior year. Total revenues (including equipment sales and other items) reached 297 million euros, an increase of 8% versus Q1 2016. From a profitability perspective, the Company achieved recurring EBITDA of 45 million euros for the quarter, an increase of 128% over Q1 2016.
MÁSMÓVIL acquired 163,000 combined mobile postpaid and fixed broadband customers during Q1 2017. The net additions of fixed line subscribers in Q1 exceeded the level achieved for the entirety of 2017. The Company closed the first quarter with more than 4.6 million unique customers, 10% more than at the end 1Q16.
Guidance for 2017
Taking into account the positive results achieved by MASMOVIL in the first quarter of the year, the Company reiterates its confidence in meeting the financial guidance for calendar year 2017 previously communicated to the market, specifically:
- Customers: a combined net increase in fixed broadband lines and postpaid mobile lines of 500,000.
- Revenue: Service Revenue growth of more than 10% vs 2016 Proforma Service revenues of (838M).
- EBITDA: reaching more than 200M up from 119M (Proforma Recurring) in 2016.
About MÁSMÓVIL Group
MÁSMÓVIL Group is the fourth largest converging telecommunications operator in Spain that provides fixed, mobile and broadband Internet services for residential, business and Wholesale, through its main brands: Yoigo, Pepephone, MÁSMÓVIL and Llamaya.
The group relies on a fiber/ADSL network for broadband and 3G and 4G network for mobile telephony. At present, it has 7 million marketable fiber homes and reaches 18 million homes with ADSL. The companies' 4G mobile network covers 85% of the Spanish population. The Group had more than 4.6 million customers in Spain at the end of the first quarter 2017.
For more information
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/8172119c-39b5-4959-b5c7-53540b8360ca