Jul 11, 2017 7:30 AM CET
Second quarter summary
Comment from Anders Nilsson, CEO, Com Hem Group:
The Com Hem Group showed strong operational momentum with good performance across all KPIs. This translated into solid financial performance as revenue and underlying EBITDA for the Group grew in-line with guidance. In the Com Hem Segment, record consumer ARPU and churn in the quarter following our annual price adjustments give us confidence in our strategy to focus on customer satisfaction. For Boxer we see initial signs that the repositioning from a TV-centric to a broadband-led operator is getting traction, resulting in a slowdown of the RGU decline, as broadband sales grow while DTT churn is significantly reduced.
Record ARPU and churn following price adjustments in the Com Hem Segment
Price adjustments implemented in the previous quarter drove a sequential consumer ARPU increase of SEK 8 (2.3%) to a record high of SEK 376 while consumer churn declined from 13.6% in the first quarter to 12.4%, a record low. Our customer base grew by 8,000 in the segment and the number of RGUs increased by 8,000 with very strong growth in broadband, up 11,000 RGUs, modest growth in DTV, up 1,000 RGUs, and continued decline in telephony, down 5,000. Our TiVo base grew by 4,000 customers, now at 40% of our DTV base.
Addressable households reaching 2.6m
We made continued progress in our network expansion programme with 200,000 addressable households added in the quarter to a total of 600,000 since the start of the expansion, 200,000 of which are unique to Boxer. Since one year ago the Group has expanded its footprint by 30% from 2.0m to 2.6m addressable households. In the first quarter we upgraded the footprint expansion target from 2.8m to 3.0m households by 2020, which constitutes an increase of 50% from before the SDU expansion and the Boxer acquisition. In addition, we made progress on the new build project where fibre was deployed in selected trial areas during the quarter. Given high competition to deploy fibre in attractive areas, we need more time to further evaluate the feasibility of scaling up new build with attractive payback beyond the trials and expect to announce a decision later in 2017.
We started this year setting out some ambitious but achievable goals. This quarter we saw clear signs that the initiatives set in motion in previous periods are already producing concrete benefits. While we execute on our current growth drivers we also look to the future for further opportunities as we prepare the company to operate in a converged market. This continues to be a year of operational focus as we execute on initiatives to improve customer satisfaction in the core cable business, set up the Boxer business to capitalise on the fibration of the SDU market and make headway toward our goal to connect 3.0m addressable households by 2020.
Notes to the editors:
You will find the complete report with tables in the attached PDF or at: http://www.comhemgroup.se/en/investors/financial-reports-presentations/
Conference call on July 11
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.
Link to webcast: http://cloud.magneetto.com/comhem/2017_0711_q2/view
Conference call dial-in numbers:
Sweden: +46 (0)8 5052 0110
UK: +44 (0)20 7162 0077
USA: +1 646 851 2407
To ensure that you are connected to the conference call, please dial in 10 minutes ahead of the conference call to register your attendance.
Com Hem Holding AB’s subsidiary Com Hem Sweden AB (publ) is the reporting entity of the Group´s outstanding notes. Com Hem Sweden AB (publ) half year results 2017 is as of today available on http://www.comhemgroup.se/en/investors/financial-reports-presentations/
For queries, please contact:
Marcus Lindberg, Investor Relations Manager
Tel: +46(0)734 39 25 40
Petra von Rohr, Director IR & Corporate Communications
Tel: +46(0)734 39 06 54
Fredrik Hallstan, Head of PR
Tel: +46(0)761 15 38 30
This information is information that Com Hem Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 07:30 CET on July 11, 2017.
About Com Hem Group
Com Hem Group offers broadband, TV, play and telephony services to Swedish households and companies. Our powerful and future-proofed network with speeds up to 1 Gbit/s, covers half of the country’s households, making the Com Hem Group an important driver of creating a digital Sweden. We bring our 1.45 million customers the largest range of digital-TV channels and play services via set top boxes as well as on-the-go for tablets and smartphones. The company was founded in 1983 and has approximately 1,100 employees. Com Hem Group is headquartered in Stockholm and operates through four subsidiaries; Com Hem AB, Boxer TV Access AB, Phonera Företag AB and iTUX Communication AB. In 2016, Group sales totalled SEK 5,665 million. Since 2014 the Com Hem share is listed on Nasdaq Stockholm. www.comhemgroup.com.