Third quarter summary
- Revenue totalled SEK 1,255m (1,210), up 3.7 per cent, explained by healthy growth in the consumer business.
- Underlying EBITDA amounted to SEK 590m (576), up 2.6 per cent, driven by revenue growth partially offset by revenue mix.
- Operating free cash flow was SEK 372m (318), up 17 per cent. The increase was due to higher EBITDA and lower capital expenditure during the quarter.
- Net profit for the period was SEK 51m (7), mainly attributable to improved EBITDA and net financial expense.
- Earnings per share were SEK 0.25 (0.03), up SEK 0.22.
- Our consumer growth continues steadily:
-The number of unique consumer subscribers rose 9,000 to a total of 903,000.
-Continued volume growth in broadband, up 11,000 to 648,000 RGUs.
-Growth in digital TV remained stable, and rose 4,000 to 631,000 RGUs.
-The number of TiVo customers rose slightly more than 9,000 to 213,000 (a penetration rate of 34 per cent).
- During the third quarter, Com Hem repurchased 3,800,911 shares, corresponding to 1.8 per cent of the total number of registered shares, for SEK 278m (SEK 73.02 per share). During the period May to September, Com Hem remunerated shareholders through a cash dividend, share redemption and share repurchases totalling SEK 689m, representing 4.9 per cent of our market capitalisation at 30 September.
- Tobias Lennér appointed Head of our B2B business and CEO of Phonera.
Comment from Anders Nilsson, CEO, Com Hem
I summarise this quarter as a solid one in which the business delivered successfully on our long-term plan, while investing in the pillars of our future growth. We continue to grow subscribers steadily, as we continue our shift from volume to price and volume-led growth. We grew our consumer base by 9,000 to 903,000 customers, with an additional 11,000 broadband subscribers and 4,000 digital TV subscribers. Our TiVo penetration rate is 34 per cent of our TV customer base, adding 10,000 customers to a total of 213,000 – a remarkable achievement since our launch two years ago.
Our strong focus on operational improvement continues to yield real benefits. We achieved a record-low consumer churn rate of 12.9 per cent, compared with 13.7 per cent in the second quarter and 14.8 per cent in third quarter 2014, benefiting from falling churn on all consumer services. This represents a particularly rapid recovery from the price rise activity in Q2.
Q3 was also a quarter of significant progress in improving the quality of our TV and broadband services.
- We continue to invest in our broadband leadership strategy, emphasising the superior quality that our unique cable network offers – both on fixed speeds and wi-fi. Thanks to this investment, we continue to lead our competitors in the Netflix speed index month after month.
- Our new TV Everywhere service – branded Com Hem Play – was launched in mid-September exclusively to our TiVo customers, replacing our previous TiVoToGo service. It offers significantly improved interface and navigation than the previous version. Reach of Com Hem Play rose 58 per cent compared to TiVoToGo, while total streaming volume up by over 200 per cent compared with the month preceding launch.
- We have renewed our partnerships with TV4 and Netflix during the quarter, giving us the opportunity to continue to strengthen our entertainment offer to our TV and broadband customers.
Conference Call on November 3
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.
Please use the following dial-in numbers to participate:
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.
For queries, please contact:
Petra von Rohr, Director IR & Corporate Communications
Tel: +46(0)734 39 06 54
Caroline Tivéus, IR-Manager
Tel: +46(0)734 39 08 67
Fredrik Hallstan, Head of PR
Tel: +46(0)761 15 38 30
Com Hem Holding AB discloses the information provided herein pursuant to the Swedish Securities Markets Act (2007:528) and/or the Swedish Financial Instruments Trading Act (1991:980). The information was submitted for publication at 07.30 CET on November 3, 2015.