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OpEx synergies, cost savings boost Italian JV’s performance in first 9 months of 2017
Italian telco Wind Tre has posted solid results for the first 9 months of 2017, with EBITDA increasing by 2.9% year-on-year to €1.619 billion, thanks in part to €98 million of OpEx synergies.
Operating cash flow was up 8.9% to €877 million, compared with the same period last year.
The figures were boosted by strong performance in the joint venture’s Internet offerings. Revenue derived from the consumption of mobile data rose by 12.2% on a year-on-year basis, while the company saw an increase in its total number of mobile Internet customers of 1.2%. The number of consumers taking up broadband with Wind Tre also rose by 2.5%.
Jeffrey Hedberg, CEO of Wind Tre, said the company will continue to invest in its networks in order to boost its digital offerings.
"We are investing significant capital to modernise our network, systems and customer operations to reinforce our commitment to the customer and to develop our digital capabilities for the future. Growth in margin and free cash flow will be our key KPIs moving forward," he said.
Despite the strong figures, there were areas of concern for the Italian operator. Total revenue decreased by 2.1% to €4.626 billion, brought about by a decrease in service revenue. Mobile service revenue fell by 3.0% on a year-on-year basis to €3.165 billion. Despite the fall in revenue, Hedberg remained bullish about the company’s prospects in the near to mid-term.
"As pricing pressures continue across the industry, we are absolutely focused on achieving a leadership position at all customer touchpoints while accelerating growth in convergence opportunities," he said.
Average revenue per user (ARPU) remained static at €11.30. However, there was a big boost in the ARPU for data consumption, which rose by 6.2% to €5.90. Data now accounts for 52% of the company’s total ARPU.
Wind Tre now has 29.8 million mobile customers, giving it a 37% share of the Italian market. The company was formed when two of Italy’s key telecoms players, CK Hutchison’s 3 Italia and Veon (formerly VimpelCom)-owned Wind, formally established their 50:50 joint venture in December 2016.
