Lebara Group revenues drop 8% in 2016

Monday 10 April 2017 | 12:18 CET | Background

MVNO Lebara Group reports revenues of EUR 573 million from continuing operations for 2016, down by 8 percent compared with 2015, due to general economic difficulties and increasing competitive markets. At the same time, the total customer base was stable at 3.6 million, despite the sale of Lebara’s Australian operations during 2016, according to the annual report recently deposited at the Dutch Chamber of Commerce.

During the year, Lebara decided to focus on its core business providing MVNO services and scale back its investments in its OTT video and voice apps Lebara Play and Talk. This led to lower costs and a better operational result, as its operating loss decreased from EUR 59.8 million in 2015 to EUR 16.3 million in 2016. Lebara’s net loss also improved, from EUR 57.4 million in 2015 to a loss of EUR 10.1 million for 2016.

The majority of the revenues came from MVNO services in six countries, which fell 9 percent in 2016 to EUR 562.8 million. The OTT voice service Lebara Talk generated EUR 7.1 million in revenues, more than double in 2015, while its 30-day active customer base grew by 4,000 to 229,000 on 31 December 2016. The OTT video service Lebara Play generated EUR 3.2 million, eight times more than in 2015, and the customer base was stable at 15,000. The decision to invest less in these services means that Lebara Talk is only rolled-out in countries where Lebara is active as MVNO, while Lebara Play will focus on Tamil content.

Looking at the geographic division of Lebara’s revenues, the UK is the largest contributor with 25.9 percent, despite a 15.5 percent decrease in revenues during 2016. Germany is the second largest contributor with almost 25 percent of the revenues, after year-on-year growth of 1.5 percent. The Netherlands follows with 18.5 percent after seeing its revenues decrease by 1.6 percent, and France is the fourth largest contributor with 14.6 percent of Lebara’s revenues, despite a 15.9 percent drop. Number five Spain also reported a revenue decrease, of 14.1 percent, and ended 2016 with a share of 12.6 percent of Lebara revenues.

The figures in this article are based on Telecompaper’s Datasheet for Lebera Group.

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