Pascual Pérez places Finetwork on the brink of collapse due to a massive debt.

The media shine that Finetwork enjoyed might have been an illusion. The telecom company owned by Pascual Pérez, "the Steve Jobs of Elda" according to some media, might be on the path to sinking. The situation is complicated due to a non-payment of tens of millions of euros.

Vodafone demands Finetwork pay for services provided during the last quarters, a debt estimated at several tens of millions of euros. This figure, which hasn't been denied by either party, reflects the magnitude of the conflict. It had been brewing quietly for some time.

The trigger for this situation has been Vodafone's formal complaint to the CNMC, which has issued a firm resolution. The virtual operator aWewi Mobile (the business name used by Finetwork) must pay Vodafone the amounts owed. The regulator granted a 10-day period to fulfill the obligation. The deadline has already passed without any service cut, at least for now.

The resolution not only authorized the payment but even opened the door to suspend the wholesale service that Vodafone provides to Finetwork. This would have been a real earthquake for the customers of the Alicante operator. It also considered the impossibility of managing new registrations 45 days after the formal communication of the suspension. Despite the delicate situation, Vodafone hasn't executed that drastic option for now.

This debt compromises Pascual Pérez, owner of Eldense, which could be relegated to Primera RFEF in the coming days. When asked about the situation, Finetwork referred Elcierredigital.com to the 2023 numbers to assure that the situation wasn't dramatic.

A silent debt that explodes publicly

Vodafone's discontent didn't develop overnight. For more than a year, according to sources close to the operator, systematic non-payments by Finetwork had been accumulating. The latter, despite its commercial growth, hadn't managed to balance its financial structure to meet its commitments with the network provider.

Some sources indicate that the operator Finetwork is experiencing a delicate financial situation. Also, a high dependency on Vodafone and a strategy that, despite optimistic headlines and campaigns full of celebrities, continues to raise doubts about its sustainability.

The company, based in Elda, has recently boasted of surpassing one million customers and being on a path to profitability. But behind that narrative lies a more complex reality: accumulated tensions with Vodafone due to non-payments, a forced debt restructuring, and a strategy that has required the sale of key assets and the entry of external funds to avoid a critical situation.

Vodafone: the partner that can't be paid (on time)

In recent years, Vodafone has been the silent pillar that has allowed Finetwork to operate as an MVNO (mobile virtual network operator). But it has also been the actor that has exposed the seams of the Alicante operator's business model. Throughout 2023 and early 2024, the accumulated debts with Vodafone reached worrying figures.

To relieve the pressure, Finetwork resorted to several emergency operations in 2024. It sold its network of 91,000 fiber optic real estate units for 16 million euros—a tactical withdrawal from its own deployment in provinces like Alicante, Cuenca, and Toledo—which allowed it to obtain immediate liquidity at the cost of reducing its technological autonomy.

This was followed by the entry of the KIA Capital fund, which injected 20 million euros: half as debt and the other half as a capital increase. This fund became a significant shareholder. A lifeline that, while strengthening the company's coffers, also implied medium-term financial commitments.

When asked about a possible change in leadership, Finetwork has assured that "there are no updates" on the search for a CEO following Óscar Vilda's departure to Dazn.

The figures: growth, yes, but conditioned

In this context, the financial results of 2023 must be interpreted with caution. Finetwork closed the fiscal year with a turnover of 127.1 million euros, an 8.45% growth compared to the previous year. Including other operating income, the total revenue figure rose to 158.9 million, 27.76% more than in 2022.

At first glance, the net profit of 2.7 million euros may seem like a sign of recovery, especially when compared to the losses of 6.6 million the previous year. Similarly, EBITDA multiplied by five, going from 2.75 to 15.2 million euros. Net equity grew by 35.7%, to 6.57 million.

However, these numbers are supported by a delicate base: debt forgiveness, asset sales, and the support of external investors. In other words, profitability hasn't come solely from operational improvement or commercial efficiency, but also from extraordinary factors that are unlikely to be repeated.

A model that needed to show maturity

Finetwork has surpassed one million customers and projected a 29% revenue growth in 2024, reaching 157 million euros, with an estimated operating profit of 6 million. Additionally, it aimed to expand its fiber coverage to 15 million households in 2024 and 20 million in 2025, including the expansion of its offer with 5G technology.

In an increasingly competitive telecommunications market, where margins are tight and major players consolidate their power, Finetwork will need more than good headlines to stay afloat. It needs a solid, sustainable model that is less vulnerable to decisions it doesn't control. And all this in an environment where it isn't feasible to conquer new customers. Additionally, in a market devoured by the voracious Digi, 15 chronic euros per month of fiber per month.