Zegona Communications plc: Model update

Research evidence excerpt

Zegona Communications plc: Model update

Equity Research

European Telecom Services

8 July 2026

Zegona Communications plc

Model update

We update our estimates for Zegona for the recent market

trends and refinancing. Our investment case remains

unchanged. ZEG.L/ZEG LN OVERWEIGHT Unchanged

European Telecom Services NEUTRAL

Zegona (OW, PT GBp 2500): We update our Zegona estimates for the recent market trends. Our Unchanged

revenue estimates increase by +0.8%/+0.8% in FY27E/28E, respectively, reflecting confidence on Price Target GBp 2500

the pricing outlook. Our EBITDAaL estimates are broadly unchanged. FY27e FCF does fall c9% as Unchanged

we model the refinancing costs - FY28e is broadly unchanged. We look for Zegona fiscal 1Q27E Price (06-Jul-26) GBp 1538

to show continued momentum towards these figures - we model Revenues +1.8% yoy to €911m, Potential Upside/Downside +62.5%

and EBITDAaL + 2.5% yoy to €324m - with modest growth in contract mobile and broadband net Source: Bloomberg, Barclays Research

adds. We maintain our DCF-based price target at GBp2500 per share. On our estimates, Zegona

trades at FY27E 5.9x EV/EBITDA, 9.9x EV/OpFCF and offers an 8.6% EFCF yield compared to Market Cap (GBP mn) 3468

European challengers at 7.5x/13.3x/8.8%, respectively. Shares Outstanding (mn) 225.54

Free Float (%) 76.87ZEG.L: Financial and Valuation Metrics EPS (EUR)

52 Wk Avg Daily Volume (mn) 0.5

FY Dec 2025 2026 2027 2028 2029

Dividend Yield (%) N/A

EPS -0.01A -0.30A 0.36E 1.06E 1.37E Return on Equity TTM (%) N/A

Previous EPS -0.01A -0.06E 0.60E 1.10E 1.40E Current BVPS (GBp) -380

Consensus EPS N/A -0.30A 0.69E 1.21E 1.48E Source: Bloomberg

P/E N/A N/A 49.3 16.7 13.0

Consensus numbers are from Bloomberg received on 07-Jul-2026; 12:50 GMT Price Performance Exchange-LSE