17 Jul 2014
Dutch cable TV, broadband and mobile provider Ziggo has released its financial and operational results for the three months ended 30 June 2014, reporting a 3.4% year-on-year increase in revenue to EUR405.1 million (USD548.8 million) driven by strong sales of internet, mobile and business bundles. Adjusted EBITDA climbed 2.2% y-o-y to EUR225.8 million, operating income was up EUR12.1 million at EUR116.3 million, although net profit (loss) was EUR29.5 million – reversing a net profit of EUR88.9 million in the same period of 2013. Second-quarter CAPEX was EUR98.0 million, up from EUR79.5 million in Q2 2013, equivalent to 24.2% of total revenue. Net debt of EUR3.2 billion was ‘stable’ when compared to year-end 2013. Its outlook for FY2014 remains unchanged.
Operationally speaking, Ziggo reported signing up a net 25,000 new broadband internet subscribers in the three months to June, for a total of 1.973 million, representing 1.3% sequential growth and 7.7% y-o-y growth. Voice telephony customers were broadly unchanged at 1.627 million, although revenue from telephone services was up 5.7% y-o-y following a revised fixed telephony rate plan, resulting Ziggo said in ‘strong growth in subscriptions to flat-fee telephony bundles’. The cableco also reported strong demand for its all-in-one bundles, with the signing up of 5,300 net new subscribers (including 2,600 triple-play business bundles) in Q2 to a total of 1.56 million (+5.6% y-o-y). However, digital pay-TV revenue was down 2.8% y-o-y due to a 34,000 net decline in subscribers to 823,000, partly offset by an ARPU increase and an uptake in video-on-demand (VoD). Meanwhile, its Ziggo Mobiel SIM-only brand added a net 21,000 new subscriptions during the quarter to close out June with a total of 84,000.
Commenting on the group’s performance, CEO Rene Obermann said: ‘Despite the overall challenging market conditions we were able to perform strongly. Customer satisfaction levels rose slightly compared to the previous quarter and remain one of the key areas of focus for the rest of the year. We are pleased to see another quarter of good operational performance with higher RGUs for internet and growth in bundles, while our on-going retention programs are paying off as churn for television came down to a level not seen in many years. Whereas we continue to see growth in our consumer bundles, we also note that, similar to previous quarters, dual play growth has overtaken growth in triple play following our dual play TV and internet offer which specifically addresses ‘mobile-only’ households.’