Zegona Communications (ZEG) H1 2025 earnings summary

Executive summary

• Customer base expanded in both broadband and mobile segments, with broadband lines reaching 2,587k and contract mobile lines 10,150k at the end of September 2025, marking positive net adds for the third consecutive quarter.

• Business transformation and cost reduction initiatives drove margin expansion and strong cash flow generation.

• Advanced strategic initiatives, including the creation of PremiumFiber and Fiberpass joint ventures, positioning for a 100% FTTH national network and significant cost savings.

• Successfully refinanced debt, reducing interest costs and streamlining covenants, and prepared for significant shareholder returns following major asset transactions.

• FibreCo transactions advanced, including a 12% stake sale in PremiumFiber for €1.4bn upfront proceeds.

Financial highlights

• Revenue for the six months ended 30 September 2025 was €1.79bn, up from €1.2bn in the prior year period.

• Q2 26 EBITDA reached €474mn, up 11% year-over-year; H1 26 EBITDA at €916mn, up 9% year-over-year.

• Q2 26 EBITDAAL was €349mn (+10% yoy); H1 26 EBITDAAL at €664mn (+8% yoy).

• Q2 26 cash flow (EBITDAAL - Capex) was €210mn (+20% yoy); H1 26 cash flow at €411mn (+30% yoy).

• Loss for the period reduced to €28m from €307m in the prior year period, reflecting improved performance and lower non-recurring costs.

Outlook and guidance

• Focus remains on customer growth, margin expansion, and further cost efficiencies.

• PremiumFiber transaction expected to close in the final quarter of 2025, enabling further capital returns and a simplified capital structure.

• FibreCo monetisation and capital structure optimisation expected to drive further shareholder returns.