VodafoneZiggo posts 4.6% Q2 revenue drop

10 Aug 2018

Dutch quad-play operator VodafoneZiggo posted a 4.6% year-on-year drop in total revenues to EUR934.6 million (USD1.082 billion) in the second quarter of 2018. Consumer cable and consumer mobile revenue fell by 0.2% and 10.9% to EUR501.9 million and EUR190.0 million respectively. B2B mobile revenue also declined, by 19.4% to EUR124.7 million, partly offset by an 8.8% increase in B2B cable revenue to EUR105.4 million. The group reported an operating loss of EUR5.1 million in the three months to the end of June, compared to an operating profit of EUR46.3 million in the year-ago quarter. Factors identified as pressuring revenue and profitability included: adverse pricing trends, the impact of applying New GAAP reporting standards, restructuring costs, and lower interconnect/roaming earnings following last year’s reduction in mobile termination rates and new EU regulation.

Total mobile customers stood at 4.862 million at 30 June 2018, down from 5.045 million twelve months earlier, whilst fixed broadband customers climbed to 3.299 million (3.221 million). The group also reported that by mid-2018 29% of its fixed broadband customers and 64% of its consumer post-paid Vodafone-brand mobile subscribers were ‘converged’ users (i.e. taking a mobile/fixed Vodafone/Ziggo service bundle). VodafoneZiggo also highlighted that mobile data usage continued to grow strongly, up 48% y-o-y, with average usage per post-paid customer increasing to 2.6GB per month.

Netherlands, VodafoneZiggo