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EXATEL has summed up its financial results for 2019.
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The main indices, such as EBITDA or the direct cost margin increased for another year in a row. This has resulted in the net result being better than expected by PLN 0.4 million.
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The continuing upward trend can also be seen in the presented financial results for the first quarter of 2020.
EXATEL’s Management Board has summed up company’s financial results for 2019. Last year, the EBITDA of the Polish telecommunications operator amounted to PLN 56.3 million and had improved by 24% relative to 2018. The direct cost margin also increased, by 9% year-on-year, and amounted to PLN 176.4 million at the end of 2019. This is a consequence of our long-term strategy, the objective of which is to become a profitable provider of unique, secure ICT solutions based on our own fibre-optic network, for business, the public sector and other operators.
Closer to company profitability
The increase in EBITDA continuing since 2017 and the direct margin were positively reflected in the net result. Last year, the Company significantly reduced its net loss by PLN 8.5 million and ended the accounting year with a result of PLN -12.1 million. This result was better than planned by PLN 0.4 million.
“The foundation of our development is the fibre-optic network of over 20 500 km and the continuous enhancement of our offer, both domestically and abroad. Last year, we launched yet another POP for our services – this time in Prague. We also secured a transit connection between Frankfurt and Warsaw, which is important to us, hence, providing our clients with even better service standards. This, in turn, has translated into a 45% increase of invoiced data transmission services to Frankfurt” – said Nikodem Bończa Tomaszewski, President of the Management Board at EXATEL.
The better-than-assumed financial results were also owed to the development of products and services offered by the national telecommunications operator. The most important services include satellite communication, new products in the telecommunications portfolio, such as Wavelength (private, high-speed point-to-point connection based on DWDM infrastructure within the EXATEL network) or cybersecurity solutions such as Security Operations Centre, audits and other IT security measures.
73% of EXATEL’s revenues come from the commercial market
Imperturbably, the main source of Company revenues remains the commercial market. The amount of all sales revenues decreased by 4% relative to 2018 and amounted to PLN 366.9 million, with a simultaneous increase in sales profitability.
“This decrease is the consequence of optimizing our sales activities – mainly in the voice wholesale sector. In 2019, we recorded an increase in the margin by PLN 15.1 MM, which means sales profitability was higher by 6%. As a company striving to achieve positive net result, we are closely monitoring every project we implement. We compete primarily through the quality of the services we provide and by following strict availability standards, while maintaining a reasonable price. These are the factors that have made us a trusted partner for, among others, the largest global operators, the financial sector and international corporations. Owing to this, we have increased our client base by 7% in 2019” – added Nikodem Bończa Tomaszewski.
The high cost-efficiency of the Polish telecommunications operator is also demonstrated by the EBITDA per EXATEL employee index. This amounted to PLN 140.99 thousand in 2019 and topped the previous year by 24%.
Upward trend maintained in Q1 2020
The first 3 months of this year confirm the trend observed since 2017. According to the National Accounting Standard, at the end of March 2020, the EBITDA of the Company amounted to PLN 15.2 million and was higher by 7% than planned. On the other hand, the direct cost margin amounted to PLN 45.7 million and exceeded the then planned value by 0.17%. This led to a net result of PLN -1.8 million – better than planned by PLN 0.8 million. The total sales revenues amounted to PLN 86.3 million.
“Since the beginning of this year, we have been working intensively on the further development of our company. In March, we have opened a new IP traffic exchange point in Paris, followed by one in Prague a little later. Owing to the modernization of the Frankfurt – Warsaw line, we currently have the lowest latency on the market along this route. This service has been extremely important to data transit along the Western – Eastern Europe route, for financial institutions in particular. We also offer new data transmission services for the APAC (Asia and Pacific) region and are strengthening our presence on South American markets“ – emphasized Rafał Magryś, Vice-President of the Board at EXATEL.
Moreover, the Polish telecommunications operator is enhancing its current activities, for example, in the field of international business communication or its offered satellite solutions. The company is also constantly introducing new services, like SOC Assistance, videoconferences based on own infrastructure or packet services addressed to local government units.
“This year will also be the first with a completely proprietary solution at our disposal. I mean our proprietary TAMA anti-DDoS. We completed this research and development project at the end of 2019. TAMA has been operating within our network since the beginning of this year. This enables us to gain new experience and constantly develop it. I hope that this solution will have its significant share in our good results at the end of 2020″ – stressed Rafał Magryś.
ABOUT EXATEL
EXATEL is a Polish telecommunications operator, as well as an ICT, cybersecurity and satellite connectivity service provider. It was founded in 2004 as a result of a merger between Telbank and Tel-Energo. It has constructed and now manages one of the largest fibre-optic networks in Poland – one that is over 20 500 km long. It has been busy developing cyber solutions for business, other operators and the public sector. EXATEL provides data transmission for all Polish commercial banks and for 78 companies of the energy sector. It has also designed and built the OST (Nationwide ICT Network) for government administration communication. The entity manages connections with 307 domestic and 134 foreign operators and is present at international traffic exchange points in London, Frankfurt, Amsterdam, Moscow, Kiev, Prague and Paris. As part of on-going research and development projects, the company has developed proprietary ICT and cybersecurity solutions, such as the Polish TAMA anti-DDoS, SDNbox or SDNcore. In addition, it originated the #Polskie5G project –a single wholesale operator for a nationwide wireless 5G mobile communication network in the 700 MHz band. Since 2017, it has been fully state-owned and has been supervised by the Minister of State Assets.
