Fastweb at full speed: does transparency pay off?

Fastweb in 2021 it acquired 692,000 new customers overall in fixed, mobile and wholesale access services (+ 14% compared to 31 December 2020). It’s easy to get used to the 34th consecutive quarter of growth “with positive performances in terms of customers, revenues and margins“, but the result is even more striking if we consider that in Italy the telecommunications sector lost € 16.3 billion between 2008 and 2020. In fact, as reported by the latest report on the Telecommunications Sector in Italy (2021) by Assotelecomunicazioni Asstel both operator revenues and average consumer spending collapsed. Among the few exceptions? Fastweb. On the other hand, one of the few important companies to share with Iliad a strategy based on tariff transparency and fairness.

At 31 December 2021 the operator recorded improvements on all fronts and revenues up 4%; specifically, a overall result of 2,392 million euros. Margins with EBITDA (gross operating margin) were also positive and increased by 5% compared to the end of 2020: overall they reached 826 million euros. On the other hand, EBITDA inclusive of rental costs (EBITDAaL) stood at 772 million euros, up by 5%. Cash generation was also positive. At the end of 2021, the FCF Proxy (calculated as EBITDAaL – Capex) recorded 171 million euros, an increase of 18% compared to 2020. Capex is the part of cash flow used to purchase, maintain or implement one’s own facilities, plants, equipment, etc.

Boom also in the mobile segment with a growth of 26%; and in this sense it must be recognized that the excellent convergent offer probably also contributes.

Also for 2021 Fastweb confirms its leadership in investments which amounted to 601 million euros, an amount equal to 25% of revenues, mainly aimed at the transition of the company into an infrastructured OTT operator through the development of fixed and mobile 5G and FWA networks , of advanced technologies and services for the Cloud and cybersecurity “, points out Fastweb.

As regards the penetration of ultra-broadband access services, Fastweb confirmed its success with 2,243,000 active customers. “About 82% of customers (+9 pp compared to the previous year) use a connection with performance from 100 Mbps up to 1 Gigabit. More than 300,000 customers currently surf at speeds of up to 2.5 Gigabits per second“, emphasizes the operator.

On the mobile front the number of active SIMs reached 2,472,000up 26% compared to 2020. The percentage of converging customers who adopt mobile services combined with landlines represent 38% (+4 pp compared to the previous year) of Fastweb’s customer base.

The Wholesale division (wholesale business) recorded revenues of € 271 million, an increase of + 3% compared to 2020. In twelve months the number of ultra-broadband lines supplied to the other national operators reached 336,000 units, recording a an increase of 113% over the previous year.

The Enterprise Business Unit achieved revenues of 979 million euros at the end of 2021 (+ 8% compared to 2020) thanks above all to infrastructures, advanced Cloud solutions and security dedicated to companies and PA. Fastweb’s positioning in the Enterprise segment has reached a market share of 35%.

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