Zegona Communications (ZEG) H2 2025 earnings summary

Executive summary

• Completed the transformational acquisition of Vodafone Spain in May 2024, aligning the accounting period and currency to the new business.

• Rapid execution of a transformation plan focused on customer growth, cost reduction, and organizational restructuring.

• Created two major FibreCos to monetize underutilized infrastructure and enhance broadband offerings.

• Significant improvement in operational KPIs and shareholder value, with share price increasing over 5x since September 2023.

Financial highlights

• Group revenue for the 15 months to 31 March 2025 was €3,015m, with EBITDAAL of €1,249m and EBITDAAL less Capex of €625m.

• Net loss for the period was €438.8m, impacted by non-recurring restructuring, acquisition, and debt refinancing costs.

• Vodafone Spain delivered a 55% year-on-year increase in operational cash flow, with margins expanding to over 17%.

• Net debt at period end was €3,715m.

Outlook and guidance

• Management anticipates continued improvement in financial results, driven by ongoing transformation and customer investment.

• FibreCo monetization expected to further strengthen the balance sheet.

• Three-year viability assessment confirms reasonable expectation to meet liabilities through March 2028.