Mobile operator Lebara considers sale after pandemic boosts customer numbers
London-based mobile network provider Lebara is considering a sale or an IPO, its chief executive Stephen Shurrock told the FT.
Owned by the investment groups Alchemy and Triton, Lebara has grown rapidly since 2019 as consumers searched for cheaper mobile network deals: it expects earnings before interest, taxes, depreciation, and amortization (EBITDA) to reach £70mn in 2024, double that of 2020.
Chief executive Stephen Shurrock told the FT that Lebara was working with financial services firm Guggenheim to assess its strategic options, but said that deliberations were at an early stage and no decision had been taken.
“Under our existing ownership we’ve really had a remit which is ‘fix what you’ve got’,” Shurrock told the FT. “The transformation of the business is very substantive.”
Founded in 2001, Lebara began by offering cheap international phone calls to migrants in Europe. The company now operates in nine countries and serves more than five million customers worldwide.
Lebara offers cheap, no-strings-attached mobile network deals to consumers.
It operates as a mobile virtual network operator (MVNO), selling mobile services under its brand name using the network of a licensed mobile operator – in Lebara’s case, primarily Vodafone.
MVNOs can operate on a leaner business model than traditional providers as they have few infrastructure and upkeep costs and therefore lower overheads.
The cost-of-living crisis has boosted consumer demand in the sector as consumers switched from major telecom operators in search of cheaper deals in the market, while the pandemic helped to boost online sales for MVNOs.
Since 2020, Lebara has boosted customer numbers by 67 per cent – it has added 1.6m new customers.
There are several MVNOs in the UK market, including GiffGaff, Virgin Mobile and Smarty.
City PM has reached out to Lebara for comment.