Exhibit 99.1
NEWS RELEASE
CompleTel Europe N.V. Contact Information: Carson Kuhn
Kruisweg 609 [email protected]
2132 NA Hoofddorp
The Netherlands in Europe:
+31 20 666 1701 Jacques Dalmas or Patrick de Borredon
Kuhn Partners
(ParisBourse: CTL) Tel: +33 (01) 53 43 00 00
(NASDAQ: CLTL) in the U.S.:
Sylvie Repeczky
FOR IMMEDIATE RELEASE The Carson Group
July 27, 2000 Tel: +1 (212) 707-0686
COMPLETEL EUROPE REPORTS 83% REVENUE GROWTH
OVER FIRST QUARTER
o Second quarter revenues increased 83 percent to ?5.5 million over 1Q00 o Total
on-net switched voice revenues exceeded ?1.0 million in 2Q00. o Total Internet
and data revenues grew to ?2.3M from ?1.6million
o Cumulative orders for services grew to 924 from 483 over 1Q00, an increase of
91 percent over 1Q00 o Additional 201 kilometers of fiber network deployed
bringing total local loop network to 726 kilometers.
PARIS, July 27, 2000 -- CompleTel Europe N.V. (ParisBourse: CTL; NASDAQ: CLTL),
a facilities-based provider of switched local telecommunications and Internet
services to business end-users and carriers in Western Europe, today reported
second quarter revenues of ?5.5 million compared with ?3.0 million for the
quarter ending March 31, 2000. Net loss for the quarter amounted to ?27.1
million, or ?0.17 per diluted share, compared with a loss of ?97.3 million for
the previous quarter, or ?0.77 per diluted share. The substantial change is
primarily a result of a non-cash compensation gain of ?7.5 million at June 30
2000, compared with a non-cash compensation charge of ?69.7 million at the end
of the previous quarter. Adjusted EBITDA for the quarter, defined as Earnings
Before Taxes, Depreciation and Amortization and other non-cash gains or losses,
totaled a negative ?21.3 million compared with a negative ?15.3 million for
1Q00.
Commenting on the quarterly results, William H. Pearson, President and Chief
Executive Officer, stated, "This quarter, we exceeded our revenue and network
growth targets, as well as our financial and operational goals. These results
confirm our focus on execution and represent an accomplishment of the entire
CompleTel team. We believe that over time the financial markets will continue to
validate our strategy as they look for sustainable long term business models,
strong execution and a clear route to profitability."
Financial details :
Revenue for the second quarter of 1999 was ?0.3 million, with net loss of ?9.7
million or ?0.09 per ordinary share on a pro-forma basis, since the shares were
not publicly traded in 1999. Adjusted EBITDA amounted to a negative ?7.2million.
Switched revenue increased during the quarter to ?1.0 million at June 30, 2000
from ?0.7 million in the first quarter, while non-switched Internet and data
revenues grew to ?2.3 million from ?1.6 million, a 44 percent gain over the
previous quarter. Carrier revenue rose 83 percent to ?1.1 million in 2Q00 from
?0.6 million in 1Q00. Internet dial-up collection services and other indirect
services revenues grew to ?1.1 million during 2Q00 from ?0.1 million in 1Q00.
For the quarter, CompleTel reported revenues of ?3.6 million in France, and ?0.5
million in Germany, with the remaining ?1.4 million generated by the company's
Internet related services business in London. In addition to raising ?547.4
million through an Initial Public Offering in 1Q00, CompleTel completed a ?200
million high yield bond offering in April, 2000. Cash and cash equivalents
including restricted cash at June 30 amounted to ?629 million. Capital
expenditures for the quarter totaled ?60.7 million compared with ?34.5 million
in the previous quarter.
David E. Lacey, Chief Financial Officer, commented, " Direct sales margins for
CompleTel this quarter totaled about 50 percent. Gross margins were flat, as
expected, due to the rapid expansion of our network and local inter-connections
and the related fixed operating costs which will be absorbed with increased
sales. He further added, "with the completion of our bond offering in the second
quarter, we believe we have the financial resources to fully fund our 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 operations commencing in Nice in the second quarter, CompleTel's network
rollout proceeded on track with 11 markets now operational, including Paris,
Lyon, Lille, Marseille, Toulouse, Grenoble, Munich, Nuremberg, Berlin and Essen.
During the second quarter, CompleTel's network utilization quadrupled to 23
million on-net minutes from approximately 6 million in 1Q00. In addition, new
on-net signed customers grew 88 percent over the first quarter, an increase of
251 from 286 in 1Q00, reaching an aggregate number of 537 on-net customers at
the end of 2Q00. Total connected on-net customers increased to 287 from 117 in
1Q00 and from 45 in 4Q99. Strong sales efforts translated into a solid customer
influx of retail customers, carriers and Internet providers (ISP/IAP).
CompleTel's headcount grew to 564 in the quarter, up from 465 in the first
quarter, as the Company continued to successfully attract new employees.
Founded in 1998, CompleTel is deploying metropolitan fiber-optic networks in 17
markets in France and Germany and business-oriented, Internet-related services
in 18 markets, including London, directly connecting customers to CompleTel's
fiber-rich local networks. Registered in The Netherlands, CompleTel has its
headquarters office in Paris.
NOTE: The information contained in this press release contains "forward-looking
statements" within the meaning of the U.S. Federal Securities Law. Such
statements are based on the current expectations of the management of CompleTel
Europe only, and performance is subject to risks, uncertainties and other
factors that could cause actual results to differ materially from these
statements. Such risks include, but are not limited to, adverse regulatory,
technological or competitive developments, decline in demand for the company's
services or products, inability to timely develop and introduce new
technologies, products and services, pressure on pricing resulting from
competition, unforeseen construction delays, and failure to receive on a timely
basis necessary permits or other governmental approvals, and failure to obtain
any necessary financing which could cause the actual results or performance of
the company to differ materially from those described herein. For a more
detailed discussion of such risks and uncertainties affecting the company other
factors please refer to the company's prospectuses and 10-K,10-Q and 8-K reports
filed with the U.S. Securities and Exchange Commission.
Paris office: Tour Egee, 9-11 allee de l'Arche, 92671 Courbevoie cedex, FRANCE
Telephone : +33 1 72 92 20 00 ; Fax : +33 1 72 92 26 19 ;
Website : www.completel.com
<PAGE>
COMPLETEL EUROPE N.V. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Stated in thousands of
Euros, except share and per share amounts) (Unaudited)
<TABLE>
<CAPTION>
Three Months Ended June 30, Six Months Ended June 30,
----------------------------- --------------------------
2000 1999 2000 1999
------------- ------------- ----------- ------------
REVENUES
<S> <C> <C> <C> <C>
Euro 5,494 Euro 295 Euro 8,466 Euro 295
OPERATING EXPENSES:
Network costs 5,551 402 8,562 521
Selling, general and administrative 17,247 6,132 30,374 9,586
Management fees to affiliated party 4,033 1,002 6,150 1,858
Non-cash compensation changes (5,431) 175 64,229 206
Depreciation and amortization 4,231 265 7,177 388
------------- ------------- ------------- ------------
Total operating expenses 25,631 7,976 116,492 12,559
------------- ------------- ------------- ------------
OPERATING LOSS (20,137) (7,681) (108,026) (12,264)
OTHER INCOME (EXPENSE):
Interest income 9,115 965 9,559 1,465
Interest expense, net of capitalized interest (6,644) (2,726) (8,512) (3,896)
Foreign exchange loss and other expense (10,508) (246) (18,451) (246)
------------- ------------- ------------- ------------
Total other income (expense) (8,037) (2,007) (17,404) (2,677)
------------- ------------- ------------- ------------
NET LOSS BEFORE INCOME TAXES (28,174) (9,688) (125,430) (14,941)
INCOME TAX PROVISION -- -- -- --
------------- ------------- ------------- ------------
NET LOSS BEFORE EXTRAORDINARY ITEM (28,174) (9,688) (125,430) (14,941)
EXTRAORDINARY ITEM - Gain on early 1,053 -- 1,053 --
extinguishment of debt ------------- ------------- ------------- ------------
NET LOSS Euro(27,121) Euro (9,688) Euro(124,377) Euro(14,941)
============= ============= ============= ============
BASIC AND DILUTED LOSS PER ORDINARY SHARE Euro (0.17) Euro (0.09) Euro (0.88) Euro (0.16)
============= ============= ============= ============
WEIGHTED AVERAGE NUMBER OF ORDINARY 157,413,060 105,357,165 142,116,796 90,871,245
SHARES OUTSTANDING ============= ============= ============= ============
ADJUSTED EBITDA Euro(21,337) Euro (7,241) Euro (36,620) Euro(11,670)
------------- ------------- ------------- ------------
</TABLE>
<PAGE>
CONSOLIDATED CONDENSED BALANCE SHEETS
(Stated in thousands of Euros)
(Unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
2000 1999
----------- --------------
ASSETS
CURRENT ASSETS:
<S> <C> <C>
Cash and cash equivalents Euro550,419 Euro 57,115
Cash held in escrow 78,254 --
Customer accounts receivable 6,647 1,709
Affiliate receivables -- 304
Prepaid expenses, VAT receivables and other current assets 27,309 14,677
-------- --------
Total current assets 662,629 73,805
-------- --------
LONG-TERM ASSETS:
Property and equipment, net 180,626 91,946
Licenses and other intangibles, net 4,149 ` 4,557
Deferred financing costs, net 20,079 5,082
Other long-term assets 997 818
-------- --------
Total long-term assets 205,851 102,403
-------- --------
TOTAL ASSETS Euro868,480 Euro176,208
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Network vendor payables Euro 50,680 Euro 28,593
Accrued liabilities and trade accounts payable 40,679 22,536
Affiliate payables 1,659 2,412
-------- --------
Total current liabilities 93,018 53,541
-------- --------
LONG-TERM DEBT 275,071 79,596
-------- --------
NET SHAREHOLDERS' EQUITY 500,391 43,071
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY Euro868,480 Euro176,208
=========== ===========
</TABLE>
