VodafoneZiggo reports ‘robust’ Q2 results

4 Aug 2020

Dutch quadruple-play operator VodafoneZiggo reported ‘robust’ financial performance in Q2 2020 despite the effects of COVID-19, with revenue rising 1.8% year-on-year to EUR982.5 million (USD1.155 billion) and adjusted EBITDA growing 11.3% to EUR482.8 million helped by improved costs. Quarterly net loss increased 81% y-o-y to EUR168 million, primarily driven by fair value changes in VodafoneZiggo’s derivative portfolio, partially offset by foreign exchange gains and EBITDA growth.

Consumer cable revenue grew 5% in the April-June period, mainly driven by a 6% y-o-y increase in ARPU as the company recorded limited customer growth. Consumer mobile revenue fell 1%, largely resulting from a 6% drop in post-paid ARPU driven by: phasing of converged discounts compared to the prior-year period alongside reduced roaming out-of-bundle revenue associated with COVID-19 travel restrictions; partially offset by strong customer base growth as VodafoneZiggo reported 45,000 post-paid net additions in three months, supported by record low post-paid churn.

B2B cable revenue grew 11% in 2Q20, driven by an increase in the small office/home office (SOHO) and small business customer bases and rising demand for Unified Communications (UC) services. B2B mobile revenue decreased 12% primarily due to pricing pressure in the large corporate segment and lower roaming/visitor revenue under pandemic-related restrictions, partially offset by customer base growth.

VodafoneZiggo also noted that it has resumed a rollout of gigabit DOCSIS 3.1 cable network technology in Rotterdam, with further regions to follow, after an initial suspension of build activity caused by COVID-19.

Netherlands, VodafoneZiggo