4th Quarter Results
April 27 2001 - 3:00AM
UK Regulatory
RNS Number:7199C
Atlantic Telecom Group PLC
27 April 2001
News Release
ATLANTIC TELECOM GROUP PLC
OPERATING STATISTICS FOR QUARTER ENDED 31 MARCH 2001
EUROPEAN DSL AGREEMENTS SIGNED
27 April 2001
Atlantic Telecom Group PLC ('Atlantic') today announces an encouraging set of
operating statistics for the fourth quarter ended 31 March 2001. These results
also comprise the first detailed operational information for Atlantic's DSL
services in Germany and Holland.
Highlights
* Atlantic has signed a framework agreement with Sonera to provide DSL
services in Holland. In Germany, the Group is finalising a similar
agreement with a major carrier to provide high-speed wholesale DSL
services. The Group has now signed framework agreements for wholesale DSL
access with ISPs and carriers for up to 8,650 DSL lines, nearly doubling
the Group's potential European DSL lines compared to 31 December.
* DSL build in Germany is essentially complete, with 558 installed
co-locations, of which 239 are fully ready for service. The Group now has
29 partner ISPs to support its wholesale services in Germany.
* Network build in Holland has accelerated, with 54 installed
co-locations, of which 6 are ready for service. The balance of the build
is expected to be completed during the next quarter, taking the total to
105 co-locations covering a potential market of 225,000 SMEs.
* Early indications of revenue streams from "always-on" DSL are highly
encouraging: the majority of retail SME customers are opting for the
highest service package, generating revenues per line around ten times
greater than directly connected business lines in the UK.
* Continuing growth in the core directly connected SME market, with an
increase of over 13% to 11,066 lines in the UK, Germany and Holland.
* Total installed and pending installation DSL lines at 31 March totalled
389, of which 107 lines are retail SME customers.
* Both indirect business and indirect residential lines show declines in
the quarter. These declines are largely due to the sale of Atlantic's
interests in France, which was concluded on 29 March and are therefore
excluded from the quarter end figures
* Directly connected residential customer lines have declined to 20,545
and are in line with expectations. This decline reflects Atlantic's
strategy of focusing on SMEs, rather than the residential market, and its
active policy of disconnecting, and not selling, residential services to
lower spending customers
Commenting on the statistics for the quarter, Atlantic's Executive Chairman
Graham J Duncan said:
"We are very pleased at the early sales results from DSL in both Germany and
Holland with the majority of our retail SME customers signing for our higher
speed data services which yield the highest revenues.
"It is also encouraging that larger carriers are seeking to offer wholesale
DSL services through Atlantic. As many carriers abandon their own plans to
build out DSL networks the number of potential competitors in our markets have
fallen substantially. With the opportunity and customer demand in markets such
as Germany as great as ever, this reduction in competition can only be to
Atlantic's advantage.
"Across the Group, we are now seeing the benefit of our increased focus on the
directly connected business market, with an improving proportion of directly
connected business customers over the lower revenue residential and indirect
markets.
"Overall customer numbers are affected by the disposal of our assets and
customer base in France. However, this transaction relieved the Group of
significant capital expenditure going forwards, whilst still retaining the
opportunity to benefit from the rollout of future services in France, through
a carried interest.
"The network build in each of our operating countries has progressed as
planned and we are now focusing our energies on customer acquisition and
retention."
ENDS
For further information contact:
Graham J Duncan, Executive Chairman, Atlantic Telecom 01224 454000
Susy Atkinson, Director of Corporate Affairs, Atlantic Telecom 0141 403 4747
07808 397374
Patrick Toyne Sewell/Sara Batchelor, Citigate Dewe Rogerson 020 7638 9571
Certain Operating Data (9)
The following table sets forth certain data concerning the Group's
telecommunications operations as of and for the twelve-month period ended 31
March 2001, the nine-month period ended 31 December 2000, and for the
six-month period ended 30 September 2000.
As of and for the periods
ended
30 31 31
September, December, March,
2000 2000 2001
Direct Telecommunications
Business Customer Data (UK)
Estimated business premises passed(1)(7) 42,224 43,213 45,103
Business customers (2) 2,533 3,042 3,100
Business customer lines (2) 8,564 9,734 10,677
Penetration rate of estimated business 6.0% 7.0% 6.9%
premises passed (3)
Average lines per business customer (4) 3.38 3.20 3.44
Business customer churn (5) 18.95% 18.65% 14.56%
Business Customer Data (Germany and Holland)
Estimated business premises passed(1)(7) NR NR 301,800
Business DSL retail lines (2) NR NR 107
Business DSL wholesale lines (2) NR NR 282
Penetration rate of estimated business NR NR 0.13%
premises passed (3)
DSL wholesale customer lines (10) 4,300 4,500 8,650
Residential Customer Data (UK)
Estimated residential homes passed (1) 734,479 762,860 810,107
Residential customers (2) 29,013 24,686 20,545
Residential customer lines (2) 57,413 49,152 41,202
Penetration rate of estimated 4.0% 3.2% 2.5%
residential homes passed (3)
Average lines per residential customer (4) 1.98 1.99 2.01
Residential customer churn (5) (8) 15.08% 16.76% 15.92%
TOTAL DIRECTLY CONNECTED BUSINESS LINES 8,564 9,734 11,066
Network Data
Number of active base stations in UK 139 142 148
Installed co-locations in Germany 97 331 558
Ready-for- service co-locations in 26 141 239
Germany
Installed co-locations in Holland 0 17 54
Ready-for -service co-locations in 0 1 6
Holland
Indirect Telecommunications
Business customers (2) 12,307 14,259 11,823
Business customer lines (2) 85,606 90,485 77,575
Average lines per business customer (4) 6.96 6.35 6.56
Residential customers (2) 249,155 236,135 173,175
Residential customer lines (2) 249,374 237,480 173,255
Average lines per residential customer (4) 1.00 1.01 1.00
TOTAL BUSINESS LINES (DIRECT & INDIRECT) 95,340 100,219 88,641
Call by Call Telecommunications (Germany)
Active customers (6) 149,317 127,932 129,479
(1) 'Estimated homes passed' or 'estimated business premises passed' is the
Company's estimate of the residential homes or business premises seen by the
direct networks which are capable of connection to a base station or to a
fibre network. It excludes certain multiple dwelling units, which the Company
does not presently serve.
(2) Residential or business customers or residential or business customer
lines represent the number of customers or lines which are connected and in
service, the number of customers or lines for which customers, where
applicable, have contracted for service but are not yet connected and the
number of customers or lines where service has been suspended but the
customers or lines have not yet been disconnected. Suspended customers are
treated as disconnected after a maximum period of 6 months.
(3) The penetration rate of estimated homes or estimated business premises
passed is calculated by dividing the number of residential customers or
business customers on the given date by the estimated homes or estimated
business premises passed as of such date, expressed as a percentage.
(4) The average number of lines per customer is calculated by dividing the
number of lines on a given date by the number of customers on that date.
(5) Churn is calculated by dividing the net disconnections (total
disconnections less the number of disconnected accounts for which service is
later restored and disconnections for customers moving premises and
reconnecting at their new premises) in a period by the average number of
customers in the period (calculated as the simple average of the number of
customers at the end of each month during the period.) Churn is expressed on a
rolling twelve-month basis, meaning that the churn is calculated over the
twelve months ended on 30 September 2000, 31 December 2000 and 31 March 2001.
(6) Customers who use the service on an individual call basis at some point
during the quarter.
(7) The business premises passed figure has been recounted in the quarter to
31 December and the comparative figures have been adjusted to reflect the
re-evaluation.
(8) Excludes customers disconnected as a result of restructuring. Churn
figures therefore represent customers who have elected to discontinue service.
(9) The figures at 31 March 2001 exclude the operations in France, which were
disposed of on 29 March 2001
(10) DSL wholesale customer lines represents lines under framework agreements.
Framework agreements are carrier/ISP's estimates of the take-up by customers
over a given period.
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