Adamo provides high-speed internet services via its own fiber-based access network in Spain.
Adamo is a fast growing challenger in the Spanish fixed telecommunication market. The company has a highly dedicated customer focus and provides high-quality and high-capacity services at competitive prices. The company has been a pioneer in the Spanish market being the first operator to provide 100 Mbit/s, 300 Mbit/s and 1 Gbit/s services via fiber. In 2016 Adamo generated revenues of EUR 7.8 million and has offices in Barcelona and Madrid with in total 58 employees.
Market trends and drivers
Spain, and Europe generally, are experiencing significant growth in fiber to the home (FTTH) penetration which is expected to triple by 2020. Fiber deployment in Spain is supported by inexpensive duct availability allowing for fiber roll-out with relatively low capex needs.
Adamo is expected to benefit from the strong growth trends in data consumption, driven by the increasing usage of streaming services, cloud applications, and other data-intensive services.
The strategy for Adamo is to capitalize on the market trend through focusing the roll-out on less densely populated suburban areas and smaller cities with less competition in general. In many of these areas, Adamo will have first mover advantage creating an opportunity over time to possibly offer the fiber access network in a wholesale model to other operators, increasing the infrastructure characteristics of the business model. Moreover, Adamo uses a scalable go to market approach with sales efforts and fiber deployment being made with local partners and entrepreneurs with limited need for civil works as duct access is regulated.
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Key events since EQT investment
- 2017 – Adamo signs partnership agreement with Viesgo, Northern Spain’s leading utility to deploy more than 200 thousand rural homes in Cantabria through access to Viesgo ducts. Agreement later expanded to Galicia and Asturias
- 2018 - Ten add-ons executed during the year contributing c. 22 thousand homes passed and c. 2 thousand wholesale subscribers. Wholesale contract signed with Másmóvil, the 4th largest operator in Spain
- Jan 2019 – Signing of a EUR 100 million financing facility to be used to further support accelerated build out activity
- Mar 2019 – Closing of acquisition of Telecable Andalucia’s fiber network assets contributing 38 thousand homes passed and 8 thousand wholesale subscribers
- Jul 2019 - Adamo reinforces the team with the incorporation of a new Head of Sales
- Oct 2019 - Two relevant fiber network acquisitions, Fibranet and Fibramedios, closed with long-term wholesale partnerships. Total of six add-ons (all asset deals buying fiber networks) executed during the year contributing c. 170 thousand homes passed and c. 26 thousand subscribers
- Dec 2019 - Adamo reaches 1 million homes passed (HPs), implying a growth of +880 thousand homes passed since EQT's entry in February 2017 (c. 120 thousand HPs)
- Jan 2020 - Senior Management reinforcement with the onboarding of a new CEO, CFO and B2B Director; Founder and former CEO Fredrik Gillström to lead new Corporate Development Team
- Mar 2020 - Closing of a new upsized EUR 250 million financing facility to be used to repay existing debt and fund further growth investments