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Lebara revenues grow to EUR 653 million, reports operational loss

Thursday 23 June 2016 | 09:34 CET | Background
Update: 23 June 2016 | 11:38 CET

Global MVNO Lebara Group reports revenues of EUR 652.6 million for 2015, 1 percent more than in 2014 driven by a 0.4 percent increase in MVNO revenues and the launch of 2 OTT services: Lebara Talk for voice and Lebara Play for television, according to its annual report for 2015 recently filed with the Dutch Chamber of Commerce. Lebara’s MVNO customer base was stable during 2015 at 3.6 million customers (30 days active) in seven countries and the new OTT voice app Lebara Talk, which was launched in February 2015, had 225,000 customers (30 day active) at the end of 2015. Lebara’s OTT TV service Lebary Play, which was launched in June 2015, ended 2015 with 15,000 customers. For 2015, Lebara Group reported an operational loss of EUR 59.8 million compared with an operational profit of EUR 25.8 million for 2014, due higher costs relating to the launch of Talk and Play and thus expanding its geographical reach from 7 countries to 19 countries.

The company ended 2015 with an average of 1,203 FTEs, growing from 945 in 2014. Of those FTEs, 94 were working in the Netherlands compared to 85 in 2014. During 2015, Lebara closed down its MVNO operations in Poland and acquired 100 percent of internet travel company Zap Travel for EUR 100,000, 95 percent of Sun TV Network Europe, which is the sole distributor of India’s six Sun TV channels in Europe, the Middle East and Australia for EUR 2.9 million, as well as 80 percent of Mind Sky Designs Lab, an India-based developer of interactive storybook apps, for EUR 600,000. Due to the acquisitions and new services, Lebara has changed its company structure to reflect the new situation including 4 new incorporations of which two own Lebara’s mobile activities (Lebara Mobile Group) and digital subsidiaries and investments (Lebara Digital Group).

The annual report offers three different revenues divisions, on service basis, on geographical basis and division in service revenues, revenues from goods sold and other revenues (including Zap Travel, Lebara’s Money activities). The largest segment is service revenues with EUR 647.5 million or 99.2 percent of all revenues, growing 0.7 percent year-on-year. Revenues from goods sold (including handset, STBs and Sim cards) dropped by 32% year-on-year to less than EUR 1 million, while other revenues increased by 74% to EUR 4.2 million, or 0.6% of all revenues.

Lebara’s MVNO business is the largest segment with regards to services with EUR 648.7 million, which leads to a monthly ARPU, based on the aforementioned 30 days active customers’ development of slightly more than EUR 15 per customer. Lebara Talk generated EUR 3.6 million in revenues during 2015 and revenues from Lebaray Play amounted to EUR 374,000.

With regards to revenues per country, five countries have a double digit share of the revenues: the United Kingdom, Germany, the Netherlands, France and Spain. Both remaining countries with MVNO operations, Australia and Denmark, are number six and seven with EUR 31.6 million (up 16% y-o-y) and EUR 13.4 million (down 12% y-o-y) respectively. Australia has almost 5 percent of all Lebara’s revenues and Denmark’s share amounts to slightly more than 2 percent. Of the countries without MVNO operations, Italy had the most revenues with EUR 1.7 million, followed by Malaysia and Canada with EUR 341,000 and EUR 344,000 respectively.

Lebara’s revenues from the UK grew by 8.5 percent during 2015 to EUR 175.7 million and Germany saw its revenues grow by 2 percent to EUR 136.7 million. The Netherlands reported a revenue decrease of 16 percent to EUR 107.5 million and the fourth largest contributor, France, grew its revenues by 16 percent to EUR 99.3 million. Spain lost 11 percent to end 2015 with EUR 84.8 million.



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