Exatel – improvement of profitability and agreement with the National Cloud

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Exatel plans to further increase its EBITDA in 2019 and achieve net profitability in two to three years. During a press conference, the company’s management board summarized the results for 2018. The operator pointed out that despite the erosion of revenues by 8% to PLN 380 million, it was able to improve its EBITDA, which increased to PLN 45.3 million from PLN 39.5 million in 2017. Lower sales resulted from the company’s handling of a lower volume of wholesale voice transmission.

Exatel’s CEO, Nikodem Bończa-Tomaszewski, pointed out that the company’s results are positively influenced by ICT services and cyber security. Their scale is not high, but the margins generated are clearly above the average for the whole activity of the operator. In the context of profitability, the provision of services based on own fiber optics also pays off. Last year alone, the company built 800 km of new lines.

Exatel also reported results for the first quarter of 2019 – revenues amounted to PLN 89 million and were 12% lower than in the previous year, while EBITDA reached PLN 15.5 million and was 47% higher than in the first quarter of 2018. The net loss amounted to PLN 1.5 million, as compared to PLN 5.2 million in the previous year.

In the area of cyber security, in 2018 Exatel dynamically increased its revenues by 67%. The operator reports that it has 72 customers for cybersec services, three of whom offer full Security Operations Center (SOC) services. Last year, the Act on the National Cybersecurity System came into force, which imposes key obligations on service providers in this area and this gives good prospects for further growth of Exatel’s revenues. Additionally, at the end of this year the operator intends to offer commercially a proprietary system of protection against DDoS attacks of the operator class (Dam). The value of the investment, co-financed from EU funds, amounts to nearly PLN 6 million.

In the near future, Exatel wants to develop services of the “intelligent city”, which allow the city authorities to communicate with the inhabitants. The company has completed an audit in Przemyśl and is also conducting advanced talks with seven other cities.

The operator is also strongly involved in the cooperation with the so-called “National Cloud”. The National Cloud Operator (OCK) has announced that it will use colocation services in the data centre of Exatel and the National Clearing House to provide services in Mazovia. Exatel also sees the possibility of providing OCCK with other, more advanced services.

Exatel is a telecommunications operator and a provider of cyber security services, managing a fibre-optic network of about 20,000 km in length. It offers data transmission services, leased lines, voice and Internet services, as well as hosting and collocation. The Company provides services to approximately 300 domestic telecommunications operators and 135 foreign entities. In March 2017, the Polish Energy Group sold Exatel to the State Treasury for PLN 368 million.

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