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May 2, 2014 12:00 AM CET

Com Hem reports continued strong TiVo sales and adds a record number of new broadband subscribers

Com Hem AB, the Swedish cable operator, today announces its financial and operational results for the first quarter of 2014.

Summary of results for the first quarter 2014

  • 0.9% top-line revenue growth versus previous quarter for the second consecutive quarter
  • Homes connected at all-time high with 1.83 million households, as expansion outside coax footprint continues
  • Continuous growth in number of unique subscribers, now reaching 838,000
  • Penetration of TiVo® already reaching 12.4% of DTV customer base
  • Continued growth in broadband revenue and subscriptions for the quarter adding 12,000 customers in Q1
  • No decline in telephony RGUs for the quarter
  • Success-driven STB Capex drives increase in investment compared to Q1 last year
  • Acquisition of Phonera Företag AB completed as of March 31, 2014

Anders Nilsson, CEO of Com Hem as of April 7 comments:

“During the quarter we saw early signs of our strategic initiatives starting to pay off. With one of Europe’s most advanced networks as a foundation we are in a strong position to put Com Hem back onto a growth trajectory. Our strategy for high-speed broadband in our own infrastructure as well as through LANs and open networks has proven to be successful, with 37% of the customer base now subscribing to 100 Mbit/s or above. In addition, we are seeing strong sales within TiVo, reaching more than 12% of the DTV customer base only six months after launch, a faster development than our international TiVo-peers.”

Financial results

Revenue for Com Hem in Q1 2014 was SEK 1,124 M, an increase of 0.9% compared to Q4 2013 and flat compared to Q1 2013. EBITDA was SEK 545 M, an increase of 0.8% compared to Q4 2013 and flat compared to Q1 2013.

Financial development

SEK M

Q1 2014

Q1 2013

Q4 2013

FY 2013

FY 2012

Revenue

1,124

1,123

1,114

4,448

4,562

EBITDA*

545

544

540

2,200

2,232

Capex**

215

171

398

1,038

913

EBITDA – Capex

330

373

142

1,162

1,319

* Operating profit before depreciation/amortization and non-recurring items

** Capital Expenditures before finance leases

Operating results

Com Hem reports a strong start for 2014 and continues to deliver on the following key strategic objectives to restore growth:

Com Hem adds another 36,000 TiVo subscriptions with TiVo subscribers now representing a total of 12.4% of the DTV customer base two quarters after the commercial launch

The TiVo offering was strengthened during the first quarter when Netflix was integrated in the platform in January and the app TiVoToGo™ was made available for Android units, enabling customers to bring their TV content with them on any preferred device. TiVo sales reached a total of 74,000 subscriptions at the end of the quarter, representing a 12.4% penetration of the DTV customer base at the end of Q1 2014.

Com Hem grows broadband subscriptions and revenue for second quarter in a row

During Q1 2014, Com Hem added a record of 12,000 new subscriptions, bringing the total number of broadband subscriptions to 570,000. Com Hem keeps strengthening its high speed position, now enabling 500 Mbit/s broadband to 1.6 million households. Further, Com Hem announced the selected launch of a 1,000 Mbit/s service to LAN homes in March.

Acquisition of Phonera Företag AB completed

On March 31, the acquisition of Phonera Företag AB was completed, enabling Com Hem to accelerate its entry into the B2B market by combining Phonera’s complementary voice product portfolio and established dedicated B2B sales force with Com Hem’s state-of-the art network and strong broadband portfolio.

1.83 million homes connected – all time high

At the end of the quarter, Com Hem reached 1.83 million homes, an increase of 3.0% compared to Q1 2013 and an all-time high. Com Hem continues to expand its footprint outside its own coax infrastructure and into the Open Lan infrastructure, and was awarded “Local Fibre Entrepreneur of the Year” by the Swedish Local Fibre Alliance.

Progress on the Company’s key strategic objectives and the arrival of new management team members are part of BC Partners’ approach to prepare Com Hem for life as an independent company.

Homes connected, digital subscriptions and unique subscribers

 

Q1 2014

Q4 2013

Q3 2013

Q2 2013

Q1 2013

Homes connected

1.83 million

1.82 million

1.79 million

1.78 million

1.78 million

Digital-Television

subscriptions

595,200

596,500

603,000

605,700

613,300

High-Speed Broadband

subscriptions

570,000

558,300

550,700

543,400

542,400

Fixed-Telephony subscriptions

326,900

327,200

330,100

333,700

339,500

Triple-play

subscribers

233,200

235,700

240,900

246,800

254,300

Total number of

unique subscribers

838,000

830,200

829,300

821,700

823,400

For further information, contact:

Com Hem’s press service, Tel: +46 (0)8 553 63440, e-mail: press@comhem.com

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