Rule 424 (b)(3)
Registration No. 333-41126
Registration No. 333-41126-01
Prospectus Supplement dated July 27, 2000
(To Prospectus Dated July 24, 2000)
CompleTel Europe N.V.
14% Series B Senior Notes due 2010
On July 27, 2000, CompleTel Europe N.V. (the "Company") announced its
second quarter financial results for 2000. The Company reported revenue for the
quarter ended June 30, 2000 of Euro 5.5 million compared to Euro 3.3 million in
the first quarter. Net loss for the quarter ended June 30, 2000 amounted to Euro
27.1 million, or Euro 0.17 per diluted share, compared with a loss of Euro 97.3
million for the previous quarter, or Euro 0.77 per diluted share. The
substantial change primarily resulted from a non-cash compensation gain of Euro
7.5 million at June 30, 2000 compared with a non-cash compensation charge of
Euro 69.7 million at March 31, 2000. Adjusted EBITDA for the quarter, defined as
Earnings Before Taxes, Depreciation and Amortization and other non-cash gains or
losses, totaled a negative Euro 21.3 million for the quarter ended June 30, 2000
compared with a negative Euro 15.3 million for the first quarter.
Financial details
Revenue for the second quarter of 1999 was Euro 0.3 million, with a net
loss of Euro 9.7 million or Euro 0.09 per ordinary share on a pro-forma basis,
since the Company's shares were not publicly traded in 1999. Adjusted EBITDA
amounted to a negative Euro 7.2 million. Switched revenue increased during the
second quarter to Euro 1.0 million from Euro 0.7 million in the first quarter,
while a non-switched Internet and data revenues grew to Euro 2.3 million from
Euro 1.6 million in the previous quarter. Carrier revenue rose to Euro 1.1
million in the second quarter from Euro 0.6 million in the first quarter.
Internet dial-up collection services and other indirect services revenues grew
to Euro 1.1 million during the second quarter from Euro 0.1 million in the first
quarter. For the second quarter, the Company reported revenues of Euro 3.6
million in France, and Euro 0.5 million in Germany, with the remaining Euro 1.4
million generated by its Internet related services business in London. Cash and
cash equivalents including restricted cash at June 30, 2000 amounted to Euro 629
million. Capital expenditures for the second quarter totaled Euro 60.7 million
compared with Euro 34.5 million in the first quarter.
The Company noted that direct sales margins for the second quarter totaled
about 50 percent and gross margins were flat, as expected, due to the rapid
expansion of the Company's network and local inter-connections and the related
fixed operating costs which will be absorbed with increased sales. The Company
also noted that with the completion of its Euro 200 million bond offering in the
second quarter, it believes it has the financial resources to fully fund its
current plan of establishing metropolitan networks in 17 cities in France and
Germany and Internet data related services in 18 cities, including London.
Operational achievements
With operating commencing in Nice in the second quarter, the Company now
has 11 markets operational, including Paris, Lyon, Marseille, Toulouse,
Grenoble, Munich, Nuremberg, Berlin and Essen. During the second quarter, the
Company's network utilization increased to 23 million on-net minutes from
approximately 6 million in the first quarter. In addition, new on-net signed
customers increased by 251 from 286 in the first quarter, reaching an aggregate
number of 537 on-net customers at the end of the second quarter. Total connected
on-net customers increased to 287. The Company's employee count increased to 564
at the end of the second quarter, up from 465 in the first quarter. An
additional 201 kilometers of fiber network were deployed during the second
quarter of 2000 bringing cumulative orders for the services increased to 924 and
the local loop network to 726 kilometers.
