(Adds details, quotes from CEO) MADRID, March 8 (Reuters) - Spanish telecoms firm Euskaltel expects to beat its revenue target this year thanks to one-off boosts from selling a minority stake in its broadband infrastructure unit and European Union recovery funds, CEO Jose Miguel Garcia said on Monday. Euskaltel is looking to spin off the unit and free up cash to expand its retail mobile business beyond its base in the Basque country, Galicia and Asturias and sell wholesale broadband services to rival operators developing 5G networks. “I believe we can complete this operation in the second quarter,” Garcia said, declining to give details about the size of the deal. The company has hired Lazard bank as an adviser for the transaction, a source close to the company said. The cash from the stake sale, plus grants and cheap loans expected from Spain’s share of EU pandemic recovery funds, will lift 2021 revenues beyond the 740-750 million euros ($879-$890 million) targeted last month, Garcia said. “We are collaborating with national and regional governments on more than a dozen initiatives,” he added. The company is looking at increasing broadband coverage in less populated areas, an investment that would result in immediate revenues, as well as investing in 5G networks and tech projects such as artificial intelligence, which would take longer to generate revenue, he said. In the event of further consolidation among large players in the sector, Garcia said Euskaltel would be “first in line” to potentially buy any assets that might become available. He said he didn’t plan to take the company into merger talks but didn’t rule out selling the 50 cellphone masts it operates in the Basque country to raise more cash. Despite the crisis caused by the pandemic, Euskaltel boosted net profits by 28% in 2020 to 79 million euros on revenue of 697 million.