Zegona Communications (ZEG) H2 2026 earnings summary

Executive summary

• Achieved all FY26 transformation priorities: customer growth, revenue stabilization, cost reduction, FiberCo execution, capital structure optimization, and significant shareholder returns.

• Six consecutive quarters of positive net adds in broadband and contract mobile; broadband lines up 29k to 2,591k, contract mobile up 128k to 10,185k, strongest growth in five years.

• Revenue stabilized at €3,628m (FY25: €3,629m); returned to growth in H2 with Q3 up 1.1% YoY and Q4 up 2.0%.

• EBITDAaL increased 7% to €1,341m (FY25: €1,249m); margin improved to 37% (FY25: 34%).

• Operational cash flow up 22% to €763m (FY25: €625m); cash flow margin rose from 10% in FY24 to 21% in FY26.

• Completed monetization of two FiberCos, generating €1.8b upfront proceeds and providing access to a 100% FTTH network covering ~16 million premises.

• Returned €1.6b to shareholders, including €1.4b special dividend and €200m share buyback; net debt reduced to €3.2b.

Financial highlights

• Group revenue: €3,628m (FY25: €3,629m).

• Group EBITDAaL: €1,341m (FY25: €1,249m).

• Operating profit: €220m (FY25: €86m loss).

• Net loss: €189m (FY25: €439m loss).

• Cash balance at year-end: €519m (FY25: €208m).

• Net debt reduced from 3.1x to 2.4x EBITDAaL.

Outlook and guidance

• Confident in continued customer growth and margin expansion in FY27.

• Focus remains on investing in customer experience, cost reduction, and leveraging future-proof network infrastructure.

• Longer-term capital allocation policy to be communicated later in the year.