Finetwork Open to Offers but Not Actively Seeking Sale

Finetwork is not in an "active sales process," but it would be open to being acquired if an attractive offer comes along or to participate in a major "consolidation operation" in the sector, as stated on Monday by the company's CEO, Óscar Vilda, during a press conference.

During the presentation of the company's financial and commercial results, the head of the Alicante-based telecom indicated that the company is evolving very positively in both commercial and financial aspects. The shareholders believe in its "viability" and "enormous growth potential," and it is not "seeking" a buyer. However, Vilda clarified that if an investment fund or a large telecom company wants to buy them or consolidate to "bring together all companies of our size," "we are open to discussing it."

Vilda highlighted that the value Finetwork would bring to such integration would be 1.3 million customers, and he recalled that in recent transactions in the sector, the value per customer has been between 250 and 300 euros.

For now, Vilda only acknowledged on Monday having received informal approaches from some funds interested in acquiring the company, although the executive did not disclose the name of any firm and insisted that the company is not for sale.

Finetwork expects to close 2024 with a proforma net profit, excluding recent sales of real estate units and other operations, of 6 million euros, compared to 2.7 million in 2023. Including these extraordinary items, profits will be around 38 million.

Revenue will end the year at around 157 million euros, a 24% year-on-year increase, proforma EBITDA will be six million (triple that of 2023), and net equity will approach 26.6 million (compared to 6.6 million the previous year). In terms of the commercial chapter, the operator based in Elda ended October with 1,306,000 customers and expects to finish 2024 with 1,330,000, a 29% increase from the 1,032,000 at the end of 2023.

Of the 1.3 million accesses, 1,050,000 will be mobile (27% more than a year ago) and 280,000 fixed (+34%). Businesses already represent 15% of the business. In terms of net portability, Finetwork will close the year with 161,000 new registrations, a 500% increase.

Vilda announced that in the first ten days of December, they expect to have completed the migration to their own network of customers who were using the Vodafone network prefix. The telecom will launch its new app this week.