Jazztel Plc (JAZ), a Spanish phone company that’s winning market share from Telefonica SA (TEF), said first-quarter profit climbed as it continued to grab broadband customers and market share from competitors.
Net income in the first three months jumped 71 percent from a year earlier to 11.8 million euros ($15.5 million), the company said in a statement today. Earnings before interest, tax, depreciation and amortization rose 21 percent to 39.2 million euros as sales gained 24 percent to 216.5 million euros.
Jazztel, one of the best stock performers this year, is winning business as Spain faces its worst economic crisis in decades and the country’s unemployment rate is the highest in the European Union. The company won 85,141 broadband clients in the period, boosting its total to 1.21 million.
Jazztel said Feb. 29 that 2012 net income will climb to 55 million euros to 65 million euros this year, making assumptions about taxes and tax credits. Ebitda this year will be 170 million euros to 180 million euros, it said.
The company is “in line to meet its operational and financial targets for 2012,” Jazztel said in a presentation filed to regulators today.
Jazztel shares gained 2 percent to 5.16 euros in Madrid today, valuing the company at 1.27 billion euros. The shares have climbed 38 percent this year, compared with the benchmark IBEX 35 Index’s 17 percent decline.
To contact the reporter on this story: Manuel Baigorri in Madrid at email@example.com