VodafoneZiggo revenue down 4% in 1Q18

10 May 2018

VodafoneZiggo – the Netherlands’ largest fixed broadband provider and second largest mobile operator by subscribers – reported a 4% year-on-year decline in total revenue to EUR972 million (USD1.16 billion) in the first quarter of 2018 due to sales drops in the consumer mobile and B2B mobile segments of 8% and 13% respectively, largely driven by reductions in Dutch mobile interconnection rates and EU roaming rates which took effect in Q2-Q3 2017. Consumer cable revenue declined 2%, while B2B cable delivered 8% growth in January-March 2018. The company – a joint venture between Liberty Global and Vodafone Group – also posted a decrease in total operating income to EUR31 million in 1Q18, compared to EUR54 million in the year-ago quarter.

Highlights for Q1 2018 included the addition of 20,000 fixed broadband subscribers and 35,000 net organic mobile subscriber adds (‘the best quarterly result for mobile since the formation of VodafoneZiggo [on 31 December 2016]’). The report also highlighted the continuing fixed-mobile convergence trend in VodafoneZiggo’s customer base: at end-March 2018 920,000 (23%) of its 3.94 million fixed network households (i.e. households subscribing to one or more of its cable TV, broadband or IP telephony services) took a fixed and mobile service bundle (an increase of 48,000 in Q1), with these households using a total of 1.3 million mobile SIMs. Total active mobile SIMs stood at 4.893 million at 31 March 2018 (down by a net 181,000 y-o-y); fixed broadband lines reached 3.287 million (up 75,000 net in twelve months).

Netherlands, VodafoneZiggo