Neuf Cegetel Reports Q3

Third-quarter revenues up 20%

November 7, 2007

2 Min Read

PARIS -- Neuf Cegetel reports third-quarter 2007 revenues of €859 million. Growth accelerated to 20.4% compared to Q3 2006. Excluding Club Internet, which was acquired on 29 June 2007, third-quarter growth would have been 12.1%, vs 10.9% in H1 2007.

Table 1: Revenues

IFRS, euro millions

Q3 2006

Q3 2007

% change

9-mth 2006

9-mth 2007

% change

Revenues

713.3

859.1

+20%

2,136.8

2,437.2

+14%

- Mass Market division

202.4

399.8

+98%

611.3

1,009.8

+65%

- Enterprises division

232.8

250.7

+8%

720.1

769.3

+7%

- Wholesale division

278.1

208.5

-25%

805.5

658.0

-18%





Table 2: Changes on Previous Year

Change on previous year

Q1 2006

Q2 2006

Q3 2006

Q4 2006

Q1 2007

Q2 2007

Q3 2007

Revenues

+2.4%

+4.5%

+6.2%

+8.0%

+10.3%

+11.4%

+20.4%



Mass Market division

The Mass Market division generated revenues of €400 million in the third quarter, up 98% compared to the year-earlier period. Excluding Club Internet, revenue growth would have been 64%, vs 49% in H1 2007.

The group's broadband offer, marketed under the 'Neuf' brand, continues to fuel strong division growth. In the third quarter, the 'Neuf' brand reported a net increase of 135,000 new clients1 (i.e. after churn and before migrations from other group brands). This marks an increase of more than 30% compared to Q3 2006, and supports the group's ambition for the ‘Neuf’ brand to capture between 20% and 25% of growth in the broadband market.

At 30 September, the group had 3,123,000 broadband clients. The net increase of 91,000 clients since 30 June is similar to the Q3 2006 performance. The accelerated growth of the 'Neuf' brand offset the slowdown in overall market growth, as well as the contraction in the group’s other brands, which are no longer recruiting new customers.

The 'Neuf' brand accounted for 61% of clients at 30 September 2007. The Group’s target is to increase this proportion to more than 90% at the end of 2008. AOL and Cegetel clients continue to migrate to 'Neuf' according to schedule, and most of the transition should be finished by year-end 2007. The migration of Club Internet clients will occur primarily in 2008.

Neuf Cegetel Group (Euronext: NEUF)

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like