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Feb 14, 2014 12:00 AM CET

Com Hem sells 38,000 TiVos, reaching 6% of the base three months after launch

Com Hem AB, the Swedish cable operator, today announces its operating and financial results for the full year and fourth quarter of 2013.

Operating Results

2013 was a transitional year for Com Hem. Specifically, Com Hem delivered on four key strategic objectives to restore growth. In addition to the October 7 launch of Tivo®, Com Hem grew broadband subscribers and revenue, completed a significant B2B acquisition and today announces a record number of homes connected.

  1. Com Hem launches TiVo, sells 38,000 subscriptions and reaches 6% of the DTV base three months after launch.

    On October 7 2013, Com Hem launched its Tivo product into the Swedish market. Tivo offers customers new and innovative ways to consume entertainment, with market leading features such as intelligent search and recommendations. Tivos intelligent functionality is paired with one of the strongest content line-ups on the market, including for example Netflix, 65 TivoToGo™ channels and premium content from all suppliers. Com Hem sold 38,000 new Tivo subscriptions, representing 6% of the DTV base as of December 31 2013.

    “TiVo is important to Com Hem as it is the key to restoring growth in our DTV business. The combination of the powerful TiVo platform and our broad content offers provide the strongest TV product available in our market”, said Andrew Barron, Executive Chairman, Com Hem AB.

  2. Com Hem grows broadband subscribers and revenue

    At year end 2013, Com Hem broadband subscribers reached record high of 558,300, an increase of 15,000, or 2,8%, on Q4 2012. The August launch of a 500 Mbit/s service also contributed to an increase in customers taking 100Mbit/s or above, to 35% of the base. This demand for higher speeds is in turn driving modest revenue growth. Broadband revenue was up 2.2% from Q4 2012 to Q4 2013 in a competitive market.

  3. Com Hem acquires Phonera Företag AB to accelerate B2B growth

    On December 20th, Com Hem announced the acquisition of Phonera Företag AB at an enterprise value of SEK 315 M. This strategic acquisition accelerates Com Hem’s entry into the B2B market. Specifically, it combines Phonera’s portfolio of business services within IP and mobility, 60,000 existing customers and significant sales expertise with Com Hem’s superior network and lower costs- to-serve. Com Hem will continue to focus on the SOHO and SME segments within the business market in Sweden.

  4. Com Hem announces record number of homes connected

    During the year, Com Hem has strengthened its position as a service supplier through a number of new agreements with Open Nets and Metropolitan Area Networks. Together with new agreements with property owners, this has resulted in a record 1,820,000 connected homes at year end 2013, an increase of 70,000 homes over year end 2012.

Financial results

Q4 2013 results were impacted by a delay in the launch of Tivo. Revenue in Q4 2013 was SEK 1,114 M, a decrease of 2,8% compared to Q4 2012. EBITDA was SEK 540 M, a decrease of 6,4% compared with Q4 2012. Declines in DTV and fixed telephony were only partially offset by broadband growth. For the full year, this translates to FY 2013 revenue of SEK 4,448 M compared with SEK 4,562 M in 2012, and FY 2013 reported EBITDA of SEK 2,200 M, compared to SEK 2,232 M in 2012. Full financial results are available below.

Andrew Barron comments “During 2013, Com Hem put in place the building blocks for sustained, profitable growth. The successful launch of Tivo, growth in broadband, a major B2B acquisition, record homes connected and growth in unique subscribers all point to a strong future.”

Leadership change

In December, it was announced that CEO Tomas Franzén will be leaving the company during 2014. His replacement will be announced within two weeks. Com Hem has no further announcement regarding this at this time.

Summary of results for the fourth quarter 2013

  • Lower revenue from digital-TV and fixed-telephony services, partly offset by higher broadband revenue.

  • Somewhat increased cost base due to growth initiatives such as TiVo and B2B.

  • Increased investments in TiVo STBs and capitalized sales cost.

  • Increase in homes connected to record levels and growing number of unique subscribers.

Homes connected, digital subscriptions and unique subscribers

 

Q4 2013

Q3 2013

Q2 2013

Q1 2013

Q4 2012

Homes connected

1.82 million

1.79 million

1.78 million

1.78 million

1.75 million

Digital-Television subscriptions

596,500

603,000

605,700

613,300

611,700

High-Speed Broadband

subscriptions

558,300

550,700

543,400

542,400

543,200

Fixed-Telephony

subscriptions

327,200

330,100

333,700

339,500

347,600

Triple-play

subscribers

235,700

240,900

246,800

254,300

263,600

Total number of

unique subscribers

830,200

829,300

821,700

823,400

827,800

Financial development

SEK M

Q4 2013

Q4 2012

FY 2013

FY 2012

Revenue

1,114

1,145

4,448

4,562

EBITDA*

540

577

2,200

2,232

Capex**

398

357

1,038

913

EBITDA – Capex

143

220

1,162

1,319

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

** Capital Expenditures before finance leases

For further information, contact:

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