Ziggo 1H08 revenues up 5% despite fierce competition

14 Oct 2008

Ziggo, the Dutch cable TV, telephony and broadband internet provider formed through the merger of Multikabel, @Home, and Casema, has published its financial results for the six months ended 30 June 2008. Group half-year revenue climbed 5% year-on-year from EUR583.2 million (USD791.8 million) to EUR614.3 million and adjusted recurring EBITDA rose 9.5% from EUR307.2 million to EUR339.5 million as the company increased its total user base (i.e. number of subscribed services) by 4.9% from 6.1 million to 6.4 million. Commenting on the performance, Bernard Dijkhuizen, chief executive of Ziggo said: ‘We have made great progress in the first half of 2008, thanks to substantial and constant efforts from everyone within Ziggo. Unfortunately, during the same period we were not always able to give our customers the level of service they may expect from us. We continue to build our company and our goal remains the same: completely satisfied customers, all the time. All our efforts in the coming months will strive towards that goal.’

As at 30 June 2008 Ziggo said it had 3.263 million basic TV subscribers (down 14,000 as a result of increased competition), 995,000 digital TV users (up 161,000), 1.388 million broadband internet accounts (up 3% y-o-y) and 770,000 voice telephony customers (up 10% from end-2007). By the end of 2008 Ziggo expects to be able to make a start on rolling out its video-on-demand (VoD) programme, with most of the impact expected in the first quarter of 2009. In parallel it is preparing for the introduction of EuroDOCSIS 3.0 technology, which will enable it to offer internet speeds above 100Mbps.