Feb 10, 2015 12:00 AM CET
“Strong growth in revenue and operating cash flow”
The fourth quarter of 2014 was another high quality quarter with strong results across the board. We are particularly pleased by the continued reduction in customer churn. Down from 16.4% in the second quarter to 14.8% in the third quarter and 14.2% in the fourth quarter. The pace of improvement reflects early successes for our intensive focus on improving our customers’ experience. Significant returns were delivered on our broadband investment, with another quarter of strong volume growth and continued shifts to higher speed tiers.
Similarly, accelerated growth in digital television was driven by our leading TiVo offering and TiVo penetration increased from 22% to 27%. We also saw material progress in our business-to-business operations as the number of customers in our network grew as a consequence of focused sales activities servicing existing demand.
These improvements combined have resulted in increased momentum in revenue growth, with total revenue up 10.4%, of which the organic growth was up 4.3% compared with the corresponding quarter last year. Underlying EBITDA increased by 6.6%.
Growing underlying EBITDA together with lower capex requirements significantly strengthened our operating free cash flow by more than 66%.
When considering the full year, we have reduced debt by SEK 5.7bn while the average interest rate has been reduced by 4 p.p., lowering our cash interest payments by approximately SEK 0.5bn per year going forward. On the back of a strong operational performance and a transformed balance sheet, the Board of Directors proposes a number of measures aimed at increasing shareholder returns. This can be achieved whilst continuing to invest to deliver our operational plan and remain within our leverage target. Going forward, our strategy and priorities remain the same. We are committed to successfully executing on our strategy for sustainable growth and hence generating steady, strong cash flow for our shareholders.
You find the complete report with tables in the attached PDF or at:
Management will host a conference call for the financial community at 10.00 am CET today. The presentation will be held in English and the presentation material can be accessed on www.comhemgroup.com. An on-demand version is also available after the presentation.
Sweden: +46 8 5052 0110
UK: +44 20 7162 0077
USA: +1 334 323 6201
To ensure that you are connected to the conference call, please dial in a few minutes ahead of the conference call to register your attendance.
Tomas Kihlstrand, Interim CFO
+46 725 45 99 16
Carolina Haglund Strömlid, Head of Investor Relations
+ 46 708 80 71 73
Fredrik Hallstan, Head of PR
Tel: +46 761 15 38 30
Com Hem Holding AB discloses the information provided herein pursuant to the Swedish Securities Markets Act and/or the Swedish Financial Instruments Trading Act. The information was submitted for publication at 07:30 CET on February 10, 2015.
 Net result for the period excluding one-off costs associated with the IPO and refinancing of debt, adjusted for income tax, divided by the number of shares after the issuance of new shares and exercise of the over-allotment option. See Pro forma earnings per share on page 11 in the report.