VodafoneZiggo Q3 revenue down 1%; consumer mobile sales up 5%; claims 1m ‘converged’ households

8 Nov 2018

Dutch quad-play operator VodafoneZiggo reported a 1% year-on-year decline in total quarterly revenue to EUR978 million (USD1.120 billion) in July-September 2018, mainly due to a decline in B2B mobile revenue (influenced by pricing pressure), partly offset by fixed network services price increases implemented during the quarter. Underlying consumer mobile revenue returned to growth with an increase of 5% in Q3, although consumer cable revenue decreased by 1% in the three-month period. Operating income of EUR32 million in Q3 2018 was down from EUR78 million in 3Q17.

VodafoneZiggo claimed a milestone of one million ‘converged’ households by end-September 2018, 18 months after launching its quad-play bundled fixed/mobile packages – with a ‘converged household’ representing customers who subscribe to both a Ziggo digital TV and fixed internet service plus a Vodafone-branded post-paid mobile package (Start, Red, Smart, Scherp or Black). 30% of its 3.3 million eligible broadband customers and 48% of 3.0 million eligible mobile customers are now ‘converged’. Also in the quarter, the group added 51,000 new post-paid mobile customers in three months for a total of 4.164 million, although total fixed network revenue-generating units (RGUs) declined by 12,000 to 9.753 million, as 13,000 fixed broadband net additions were offset by moderate declines in TV/telephony subscribers.

VodafoneZiggo notes that it is obliged to publish its first wholesale reference offer before 1 January 2019, following the final decision of Dutch telecoms watchdog ACM to regulate cable network access, effective 1 October 2018. VodafoneZiggo also confirms, however, that it will appeal the decision.

Netherlands, VodafoneZiggo