Netia has published its consolidated financial results for the last quarter and for the full year 2017. In Q4 2017, the Company generated revenue of PLN 361 million (1% more than in the preceding quarter) and PLN 99 million of adjusted EBITDA (-4% QoQ). For the full year 2017, revenue amounted to PLN 1.442 billion and adjusted EBITDA reached the level of PLN 396 million.
Throughout 2017, the Netia Group recorded revenue that was 5% lower than in 2016. The Company generated EBITDA of PLN 383 million, which was 10% lower than in the preceding year. The adjusted EBITDA profit (with non-recurring items removed) for the full year 2017 amounted in turn to PLN 396 million and was 13% lower than in the preceding year.
"Last year Netia achieved sound results despite a strong market pressure. Towards the end of the year we managed to dynamize our work on upgrading our network to the fiber optic standard. We also cope even better with the commercialisation of the new and upgraded network,” said Katarzyna Iwuć, President of the Management Board and CEO of Netia S.A. “In the B2C segment, we maintain the trend of systematically slowing down the decline in the number of services provided and revenue. In the B2B market, in turn, we are more effective in developing new sources of revenue from innovative ICT solutions, and thanks to our stronger presence in the wholesale market, we have achieved an increase in revenue while maintaining a satisfactory EBITDA margin,” added Katarzyna Iwuć.
B(2B)rilliant finish in 2017
Revenue of the B2B operating segment in Q4 2017 increased by ca. PLN 7 million (ca. 4% more than in the preceding quarter and ca. 3% more than in the preceding year) to the level of PLN 191 million, mainly due to increased wholesale traffic.
In the B2B segment, Netia Group has been following stable broadband trends and, despite strong competitive pressure, maintains a sound profitability at around 37% of adjusted EBITDA margin. Maintaining the EBITDA margin at such a level, despite the market’s widespread reduction in basic service prices, was possible thanks to maintaining financial discipline and effective optimisation of the use of the existing infrastructure.
Investments are gaining momentum
Last year, the Company continued the project of upgrading the network to the fiber optic standard called 21st century Network (21CN). In the full year 2017, investments under this project reached the amount of PLN 84 million. Total capital expenditure of the Netia Group in 2017 amounted to PLN 281 million (over 20% more than in 2016).
Due to higher capital expenditure, the adjusted OpFCF for the full year 2017 was 118 million (-50% YoY). Net debt as on 31 December 2017 amounted to PLN 283 million and was 39% higher than at the end of 2016, however, the Company has a comfortable leverage of 0.72 x adjusted EBITDA for 2017.