Zegona Holdco Limited TLB reporting as at 31/12/25

Zegona Holdco Limited TLB reporting as at 31/12/25

Zegona Communications plc

Publication of Zegona Holdco Limited's debt reporting as at 31 December 2025

· Zegona is pleased to publish information in relation to Zegona Holdco Limited and its subsidiaries ("Zegona Holdco Group"), for the purpose of satisfying the Zegona Holdco Group's external debt reporting obligations.

· This includes key performance indicators (KPIs) of Vodafone Spain for the three months ended 31 December 2025 as well as operational commentary summarising the strong Q3 results, which pave the way for a second successful year in Zegona's transformation of Vodafone Spain.

· The information is set out in the appendix to this announcement.

· The information can also be found on Zegona's website at https://www.zegona.com/investor-relations/debt-investors.aspx

For further information, please contact:

About Zegona 

Zegona is publicly listed on the Main Market of the LSE. It was established in 2015 with the objective of investing in businesses in the European Telecommunications, Media and Technology sector and improving their performance to deliver attractive shareholder returns.  Zegona is led by former Virgin Media executives Eamonn O'Hare and Robert Samuelson. In 2024, Zegona completed the acquisition of Vodafone Spain. 

Appendix

Zegona Holdco Limited ("the Company")

A company incorporated in England and Wales, company number 10159604 with registered office address of

8 Sackville Street, London, England, W1S 3DG

Consolidated Financial Information

Unaudited

31 Dec 25

Zegona HoldCo Limited and its subsidiaries ("the Zegona HoldCo Group" or "the Group")

presents the Group's unaudited consolidated financial information for the periods noted

in the following pages.

Purpose of this information

This information is provided for the sole purpose of satisfying the Company's external debt reporting obligations as required pursuant to the Senior Facilities Agreement dated 15 July 2024.

Q3 was another strong quarter and the results pave the way for a second successful year in Zegona's transformation of Vodafone Spain. Another quarter of positive customer and product additions, together with the positive impact of the January price initiatives, gives increased confidence the company will close FY26 with revenue stabilisation, in line with prior year.

Continued implementation of business transformation initiatives is also driving profitability and cash flow. Q3 year-to-date cash flow5 of €586m means the business is well placed to close FY26 with cash flow margins over 21%. This would represent a significant improvement from last year's 17% margin and over double the 10% prior to Zegona's acquisition in FY24.

The closing of both FiberCo transactions marks another major milestone in Zegona's delivery of its post-acquisition strategy. The recent EU clearance of the FiberPass investment removes the last hurdle to completing the transformation of Vodafone Spain's fixed network strategy. The combination of FiberPass and PremiumFiber will give guaranteed access to a future-proof, all fibre national network with attractive economic terms.

The combined €1.8b upfront proceeds from the FiberCo transactions create the opportunity to deliver significant returns to our shareholders. The recently announced capital allocation policy involves returning €1.6b of value to shareholders. This included a €1.4b special dividend paid in January 2026 (permitting the settlement in full of the Vodafone Group financing and the 69% reduction in Zegona's ordinary shares) and an ongoing €0.2b share buyback programme. The remaining €0.2b will be used for debt reduction. This puts the business on track to deliver net debt of only €3.2b by the end of our financial year. This, combined with our recent debt refinancing at a cost of debt of only 4.3%, reinforces Zegona's commitment to its leverage target of 1.5x to 2x and further accelerates progress in reducing total annual interest costs.