Zegona posts ongoing growth at Telecable subsidiary

Zegona Communications posted quarterly results for its primary investment on Wednesday, the northern Spanish cable network operator Telecable, with solid growth in both revenue and earnings.

The AIM-traded firm said revenue grew 5.7% to €34.9m in the three months ending 31 March, which was the highest first quarter year-on-year growth in six years.

EBITDA rose 3.7% during the period to €16.6m, and cash flow grew 11.1% to €8.8m.

Zegona’s board said Telecable remained on track to deliver its full-year growth guidance, underpinned by a consumer price increase of €2 per month in January for its enhanced product offers.

It added that its business segment results were also being driven by growth in both customer numbers and ARPU, with the business on its way to full-year mid-single digit revenue growth and double digit cash flow growth.

“Telecable has a clear strategy that is delivering results and its first quarter performance reflects our focus on fundamentally improving cash flows,” said Zegona chairman and CEO Eamonn O’Hare.

He said the company was encouraged by the continuing growth in the business, underpinned by the consumer price rise and progress in growing the mobile and business divisions.

“This performance, together with further evidence of price repair in the Spanish telecoms market and the improving economic environment, gives us confidence that Telecable will continue to deliver strong growth across its key financial metrics in 2016,” O’Hare added.

Zegona affirmed its 4.5p per share dividend policy for 2016, and indicated there was the potential for incremental capital return through share buybacks or special distributions as well.