Zegona Communications (ZEG) H1 2026 earnings summary

Executive summary

• Achieved continued customer growth in both broadband and mobile lines, with broadband lines reaching 2,587k and contract mobile lines 10,150k at the end of September 2025, reflecting ongoing investment in customer propositions and churn reduction.

• Expanded profit margins and improved operational cash flow, with EBITDAaL margin up 3pts to 37% and cash flow margin up over 5pts to 23% compared to FY25.

• 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.

Financial highlights

• Revenue for the six months ended 30 September 2025 was €1.79bn, up from €1.2bn in the prior year period (which included only 4 months of post-acquisition results).

• EBITDAaL for the period was €664m, with EBITDAaL less Capex at €411m.

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

• Cash and cash equivalents increased to €303m as of 30 September 2025, up from €208m at 31 March 2025.

• Net cash flows from operating activities were €680m, up from €583m in the prior year period.

Outlook and guidance

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

• Management remains focused on value creation, cost reduction, and leveraging the FTTH network for future growth.