Tele Columbus: strong Normalised EBITDA growth continues in first quarter 2015

- Normalised EBITDA increased by 11.7% year on year to EUR 24.4 million

- Revenues improved by 2.2% year on year to EUR 53.6 million; total operating performance increased to EUR 59.0 million (up 7.1% yoy)

- Internet RGUs reached 208,000 and telephony RGUs reached 175,000, remaining key growth drivers with an increase of approximately 14% yoy each

- New 400 Mbit/s high-speed offerings in Potsdam are planned to be extended to a broader customer base in the future

Berlin, 12 May 2015. Tele Columbus Group, the third largest German cable network operator, started the financial year 2015 with gains in all relevant key figures. Revenues grew by 2.2% year on year to EUR 53.6 million in the first quarter of 2015. Normalised EBITDA grew significantly by 11.7% year on year to EUR 24.4 million in Q1 2015, showing continuously strong momentum. Operating margin improved to 45.5% of revenue in Q1 2015 compared to 41.6% in Q1 2014. Tele Columbus continues to invest in its network and technology capabilities. This is reflected in Q1 2015 capital expenditures (Capex) of EUR 15 million which is more than twice the Q1 2014 Capex of EUR 6 million.

The ongoing growth is particularly due to Tele Columbus' high-performance network and the company's success in selling new products to existing customers. As of 31 March 2015, approximately 56% of Tele Columbus' homes connected were upgraded for two-way communication and connected to its own Level 3 network, compared to 55% at the end of the previous year and 53% in 31 March 2014.

Supported by ongoing product innovation and network upgrades, Internet RGUs reached 208,000 at the end of the first quarter 2015 (+13.5% yoy) and Telephony RGUs increased to 175,000 (+13.5% yoy). Compared to the first quarter 2014, the total number of revenue generating units (RGUs) increased from 1.81 to 1.84 million, and subscription of Tele Columbus' services reached 1.46 RGUs per subscriber versus 1.42 RGUs per subscriber at the end of Q1 2014. Tele Columbus' customer base remained fairly stable at 1.26 million subscribers compared to 1.27 million subscribers in the previous year. Monthly average

revenue per user (ARPU) for the first quarter increased from EUR 13.8 to EUR 14.1 compared to the same period in 2014.

Recent developments

In April 2015, Tele Columbus Group acquired several cable network assets with approximately 18.000 homes connected primarily in Eastern Germany. The assets fit well into the ongoing growth and migration strategy providing potential for cross- and upselling additional services.

Tele Columbus has demonstrated the strength of its high performing network by introducing bandwidths of 400 Mbit/s in April 2015 - a new record high in the German consumer market. This offer was launched in Potsdam and is planned to be extended to a broader customer base in the future.

Guidance for the full year 2015 affirmed

Based on the first quarter positive developments of further network migrations and product mix evolving towards higher gross margin products, the Management Board of Tele Columbus confirms its guidance for the full fiscal year 2015:

- revenue growth of between 4.0% to 6.0%,

- an expansion of Normalised EBITDA margin to more than 47.5%,

- Capex between EUR 110 to 120 million,

- to increase the level of two-way upgraded networks connected to own signal to more than 60% by year end,

- to maintain a target leverage of 3.0 to 4.0 times Normalised EBITDA.

In view of the investment requirements over the next few years and in light of current leverage, Tele Columbus does not expect to propose a dividend for fiscal year 2015.

Summary table for Q1 2015 and Q1 2014:

EURm Q1 2014 Q1 20151 yoy %
Revenue 52.4 53.6 2.2
       
Normalised EBITDA2 21.8 24.4 11.7
Normalised EBITDA margin, % 41.6 45.5 3.9ppt
       
Capex 6.0 14.7 144
Capex / Revenue, % 11.5 27.4 15.9ppt
       
EUR per month      
Total blended ARPU
RGU as per end of period (in '000)
Internet
Telephony
Premium TV
13.8

183
154
165
14.1

208
175
161

2.5

13.5
13.5
(2.5)

1 Includes RFC Radio-, Fernseh- u. Computertechnik GmbH which Tele Columbus repurchased in January 2015

2 We define Normalized EBITDA as earnings before financial result (income from investments in associates, interest income, interest expenses and other financial results by the equity method) income taxes, amortisation of intangible assets and goodwill, adjusted for
extraordinary expenses.

Additional information:

Annual General Meeting: 15 May 2015 Release of Q2 and 6M results: 7 August 2015

 

About Tele Columbus

The Tele Columbus Group is one of Germany's largest cable network operators. Via its origins - individual regional cable network operators that were merged into Tele Columbus - the company dates back to 1972. About 1.7 million connected households in Germany use Tele Columbus' TV signals and, increasingly, digital broadcast packages, Internet and voice connections provided via high-performance broadband cable. As a national provider with a regional focus and a partner of the housing industry, the Group is present throughout its core markets Berlin, Brandenburg, Saxony, Saxony-Anhalt and Thuringia as well as in numerous key regions in western Germany. In tune with current demand trends, the company is upgrading its networks in a hybrid fibre-optic infrastructure for superfast Internet connections of up to several hundred megabits per second with the state-of-the-art Internet transmission standard DOCSIS 3.0. The broadband cable caters to the entire range of innovative media applications from analogous, digital and high-definition TV to high-speed Internet and voice connections to telemetry services, tenant portals and interactive services. Beyond merely transmitting signals, Tele Columbus uses its own product platform in order to actively increase the programme offering and to develop additional services.

 

Disclaimer

This Investor Relations release may contain forward-looking statements. These statements are based on management's current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Although we believe that such forward-looking statements are reasonable, we cannot assure you that any forward-looking statements will prove to be correct. Such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks and uncertainties, the forward- looking events and circumstances discussed in this Investor Relations release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on the forward-looking statements.

This Investor Relations release may contain references to certain non-GAAP financial measures, such as Normalized EBITDA and Capex, and operating measures, such as RGUs, ARPU, and Unique subscribers calculation. These supplemental financial and operating measures should not be viewed in isolation as alternatives to measures of Tele Columbus's financial condition, results of operations or cash flows as presented in accordance with IFRS in its Consolidated Financial Statements. The non-GAAP financial and operating measures used by Tele Columbus may differ from, and not be comparable to, similarly titled measures used by other companies. For further information please see in particular the Footnotes in this Investor Relations release and the financial statements.

We disclaim any obligation to publicly update or revise any forward-looking statements or other information contained in this Investor Relations release. It is pointed out that the present Investor Relations release may be incomplete or condensed, and it may not contain all material information concerning Tele Columbus AG or the Tele Columbus group.

Tele Columbus: strong Normalised EBITDA growth continues in first quarter 2015

- Normalised EBITDA increased by 11.7% year on year to EUR 24.4 million

- Revenues improved by 2.2% year on year to EUR 53.6 million; total operating performance increased to EUR 59.0 million (up 7.1% yoy)

- Internet RGUs reached 208,000 and telephony RGUs reached 175,000, remaining key growth drivers with an increase of approximately 14% yoy each

- New 400 Mbit/s high-speed offerings in Potsdam are planned to be extended to a broader customer base in the future

Berlin, 12 May 2015. Tele Columbus Group, the third largest German cable network operator, started the financial year 2015 with gains in all relevant key figures. Revenues grew by 2.2% year on year to EUR 53.6 million in the first quarter of 2015. Normalised EBITDA grew significantly by 11.7% year on year to EUR 24.4 million in Q1 2015, showing continuously strong momentum. Operating margin improved to 45.5% of revenue in Q1 2015 compared to 41.6% in Q1 2014. Tele Columbus continues to invest in its network and technology capabilities. This is reflected in Q1 2015 capital expenditures (Capex) of EUR 15 million which is more than twice the Q1 2014 Capex of EUR 6 million.

The ongoing growth is particularly due to Tele Columbus' high-performance network and the company's success in selling new products to existing customers. As of 31 March 2015, approximately 56% of Tele Columbus' homes connected were upgraded for two-way communication and connected to its own Level 3 network, compared to 55% at the end of the previous year and 53% in 31 March 2014.

Supported by ongoing product innovation and network upgrades, Internet RGUs reached 208,000 at the end of the first quarter 2015 (+13.5% yoy) and Telephony RGUs increased to 175,000 (+13.5% yoy). Compared to the first quarter 2014, the total number of revenue generating units (RGUs) increased from 1.81 to 1.84 million, and subscription of Tele Columbus' services reached 1.46 RGUs per subscriber versus 1.42 RGUs per subscriber at the end of Q1 2014. Tele Columbus' customer base remained fairly stable at 1.26 million subscribers compared to 1.27 million subscribers in the previous year. Monthly average

revenue per user (ARPU) for the first quarter increased from EUR 13.8 to EUR 14.1 compared to the same period in 2014.

Recent developments

In April 2015, Tele Columbus Group acquired several cable network assets with approximately 18.000 homes connected primarily in Eastern Germany. The assets fit well into the ongoing growth and migration strategy providing potential for cross- and upselling additional services.

Tele Columbus has demonstrated the strength of its high performing network by introducing bandwidths of 400 Mbit/s in April 2015 - a new record high in the German consumer market. This offer was launched in Potsdam and is planned to be extended to a broader customer base in the future.

Guidance for the full year 2015 affirmed

Based on the first quarter positive developments of further network migrations and product mix evolving towards higher gross margin products, the Management Board of Tele Columbus confirms its guidance for the full fiscal year 2015:

- revenue growth of between 4.0% to 6.0%,

- an expansion of Normalised EBITDA margin to more than 47.5%,

- Capex between EUR 110 to 120 million,

- to increase the level of two-way upgraded networks connected to own signal to more than 60% by year end,

- to maintain a target leverage of 3.0 to 4.0 times Normalised EBITDA.

In view of the investment requirements over the next few years and in light of current leverage, Tele Columbus does not expect to propose a dividend for fiscal year 2015.

Summary table for Q1 2015 and Q1 2014:

EURm Q1 2014 Q1 20151 yoy %
Revenue 52.4 53.6 2.2
       
Normalised EBITDA2 21.8 24.4 11.7
Normalised EBITDA margin, % 41.6 45.5 3.9ppt
       
Capex 6.0 14.7 144
Capex / Revenue, % 11.5 27.4 15.9ppt
       
EUR per month      
Total blended ARPU
RGU as per end of period (in '000)
Internet
Telephony
Premium TV
13.8

183
154
165
14.1

208
175
161

2.5

13.5
13.5
(2.5)

1 Includes RFC Radio-, Fernseh- u. Computertechnik GmbH which Tele Columbus repurchased in January 2015

2 We define Normalized EBITDA as earnings before financial result (income from investments in associates, interest income, interest expenses and other financial results by the equity method) income taxes, amortisation of intangible assets and goodwill, adjusted for
extraordinary expenses.

Additional information:

Annual General Meeting: 15 May 2015 Release of Q2 and 6M results: 7 August 2015

 

About Tele Columbus

The Tele Columbus Group is one of Germany's largest cable network operators. Via its origins - individual regional cable network operators that were merged into Tele Columbus - the company dates back to 1972. About 1.7 million connected households in Germany use Tele Columbus' TV signals and, increasingly, digital broadcast packages, Internet and voice connections provided via high-performance broadband cable. As a national provider with a regional focus and a partner of the housing industry, the Group is present throughout its core markets Berlin, Brandenburg, Saxony, Saxony-Anhalt and Thuringia as well as in numerous key regions in western Germany. In tune with current demand trends, the company is upgrading its networks in a hybrid fibre-optic infrastructure for superfast Internet connections of up to several hundred megabits per second with the state-of-the-art Internet transmission standard DOCSIS 3.0. The broadband cable caters to the entire range of innovative media applications from analogous, digital and high-definition TV to high-speed Internet and voice connections to telemetry services, tenant portals and interactive services. Beyond merely transmitting signals, Tele Columbus uses its own product platform in order to actively increase the programme offering and to develop additional services.

 

Disclaimer

This Investor Relations release may contain forward-looking statements. These statements are based on management's current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Although we believe that such forward-looking statements are reasonable, we cannot assure you that any forward-looking statements will prove to be correct. Such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks and uncertainties, the forward- looking events and circumstances discussed in this Investor Relations release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on the forward-looking statements.

This Investor Relations release may contain references to certain non-GAAP financial measures, such as Normalized EBITDA and Capex, and operating measures, such as RGUs, ARPU, and Unique subscribers calculation. These supplemental financial and operating measures should not be viewed in isolation as alternatives to measures of Tele Columbus's financial condition, results of operations or cash flows as presented in accordance with IFRS in its Consolidated Financial Statements. The non-GAAP financial and operating measures used by Tele Columbus may differ from, and not be comparable to, similarly titled measures used by other companies. For further information please see in particular the Footnotes in this Investor Relations release and the financial statements.

We disclaim any obligation to publicly update or revise any forward-looking statements or other information contained in this Investor Relations release. It is pointed out that the present Investor Relations release may be incomplete or condensed, and it may not contain all material information concerning Tele Columbus AG or the Tele Columbus group.

Tele Columbus: strong Normalised EBITDA growth continues in first quarter 2015

- Normalised EBITDA increased by 11.7% year on year to EUR 24.4 million

- Revenues improved by 2.2% year on year to EUR 53.6 million; total operating performance increased to EUR 59.0 million (up 7.1% yoy)

- Internet RGUs reached 208,000 and telephony RGUs reached 175,000, remaining key growth drivers with an increase of approximately 14% yoy each

- New 400 Mbit/s high-speed offerings in Potsdam are planned to be extended to a broader customer base in the future

Berlin, 12 May 2015. Tele Columbus Group, the third largest German cable network operator, started the financial year 2015 with gains in all relevant key figures. Revenues grew by 2.2% year on year to EUR 53.6 million in the first quarter of 2015. Normalised EBITDA grew significantly by 11.7% year on year to EUR 24.4 million in Q1 2015, showing continuously strong momentum. Operating margin improved to 45.5% of revenue in Q1 2015 compared to 41.6% in Q1 2014. Tele Columbus continues to invest in its network and technology capabilities. This is reflected in Q1 2015 capital expenditures (Capex) of EUR 15 million which is more than twice the Q1 2014 Capex of EUR 6 million.

The ongoing growth is particularly due to Tele Columbus' high-performance network and the company's success in selling new products to existing customers. As of 31 March 2015, approximately 56% of Tele Columbus' homes connected were upgraded for two-way communication and connected to its own Level 3 network, compared to 55% at the end of the previous year and 53% in 31 March 2014.

Supported by ongoing product innovation and network upgrades, Internet RGUs reached 208,000 at the end of the first quarter 2015 (+13.5% yoy) and Telephony RGUs increased to 175,000 (+13.5% yoy). Compared to the first quarter 2014, the total number of revenue generating units (RGUs) increased from 1.81 to 1.84 million, and subscription of Tele Columbus' services reached 1.46 RGUs per subscriber versus 1.42 RGUs per subscriber at the end of Q1 2014. Tele Columbus' customer base remained fairly stable at 1.26 million subscribers compared to 1.27 million subscribers in the previous year. Monthly average

revenue per user (ARPU) for the first quarter increased from EUR 13.8 to EUR 14.1 compared to the same period in 2014.

Recent developments

In April 2015, Tele Columbus Group acquired several cable network assets with approximately 18.000 homes connected primarily in Eastern Germany. The assets fit well into the ongoing growth and migration strategy providing potential for cross- and upselling additional services.

Tele Columbus has demonstrated the strength of its high performing network by introducing bandwidths of 400 Mbit/s in April 2015 - a new record high in the German consumer market. This offer was launched in Potsdam and is planned to be extended to a broader customer base in the future.

Guidance for the full year 2015 affirmed

Based on the first quarter positive developments of further network migrations and product mix evolving towards higher gross margin products, the Management Board of Tele Columbus confirms its guidance for the full fiscal year 2015:

- revenue growth of between 4.0% to 6.0%,

- an expansion of Normalised EBITDA margin to more than 47.5%,

- Capex between EUR 110 to 120 million,

- to increase the level of two-way upgraded networks connected to own signal to more than 60% by year end,

- to maintain a target leverage of 3.0 to 4.0 times Normalised EBITDA.

In view of the investment requirements over the next few years and in light of current leverage, Tele Columbus does not expect to propose a dividend for fiscal year 2015.

Summary table for Q1 2015 and Q1 2014:

EURm Q1 2014 Q1 20151 yoy %
Revenue 52.4 53.6 2.2
       
Normalised EBITDA2 21.8 24.4 11.7
Normalised EBITDA margin, % 41.6 45.5 3.9ppt
       
Capex 6.0 14.7 144
Capex / Revenue, % 11.5 27.4 15.9ppt
       
EUR per month      
Total blended ARPU
RGU as per end of period (in '000)
Internet
Telephony
Premium TV
13.8

183
154
165
14.1

208
175
161

2.5

13.5
13.5
(2.5)

1 Includes RFC Radio-, Fernseh- u. Computertechnik GmbH which Tele Columbus repurchased in January 2015

2 We define Normalized EBITDA as earnings before financial result (income from investments in associates, interest income, interest expenses and other financial results by the equity method) income taxes, amortisation of intangible assets and goodwill, adjusted for
extraordinary expenses.

Additional information:

Annual General Meeting: 15 May 2015 Release of Q2 and 6M results: 7 August 2015

 

About Tele Columbus

The Tele Columbus Group is one of Germany's largest cable network operators. Via its origins - individual regional cable network operators that were merged into Tele Columbus - the company dates back to 1972. About 1.7 million connected households in Germany use Tele Columbus' TV signals and, increasingly, digital broadcast packages, Internet and voice connections provided via high-performance broadband cable. As a national provider with a regional focus and a partner of the housing industry, the Group is present throughout its core markets Berlin, Brandenburg, Saxony, Saxony-Anhalt and Thuringia as well as in numerous key regions in western Germany. In tune with current demand trends, the company is upgrading its networks in a hybrid fibre-optic infrastructure for superfast Internet connections of up to several hundred megabits per second with the state-of-the-art Internet transmission standard DOCSIS 3.0. The broadband cable caters to the entire range of innovative media applications from analogous, digital and high-definition TV to high-speed Internet and voice connections to telemetry services, tenant portals and interactive services. Beyond merely transmitting signals, Tele Columbus uses its own product platform in order to actively increase the programme offering and to develop additional services.

 

Disclaimer

This Investor Relations release may contain forward-looking statements. These statements are based on management's current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Although we believe that such forward-looking statements are reasonable, we cannot assure you that any forward-looking statements will prove to be correct. Such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks and uncertainties, the forward- looking events and circumstances discussed in this Investor Relations release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on the forward-looking statements.

This Investor Relations release may contain references to certain non-GAAP financial measures, such as Normalized EBITDA and Capex, and operating measures, such as RGUs, ARPU, and Unique subscribers calculation. These supplemental financial and operating measures should not be viewed in isolation as alternatives to measures of Tele Columbus's financial condition, results of operations or cash flows as presented in accordance with IFRS in its Consolidated Financial Statements. The non-GAAP financial and operating measures used by Tele Columbus may differ from, and not be comparable to, similarly titled measures used by other companies. For further information please see in particular the Footnotes in this Investor Relations release and the financial statements.

We disclaim any obligation to publicly update or revise any forward-looking statements or other information contained in this Investor Relations release. It is pointed out that the present Investor Relations release may be incomplete or condensed, and it may not contain all material information concerning Tele Columbus AG or the Tele Columbus group.

Tele Columbus: strong Normalised EBITDA growth continues in first quarter 2015

- Normalised EBITDA increased by 11.7% year on year to EUR 24.4 million

- Revenues improved by 2.2% year on year to EUR 53.6 million; total operating performance increased to EUR 59.0 million (up 7.1% yoy)

- Internet RGUs reached 208,000 and telephony RGUs reached 175,000, remaining key growth drivers with an increase of approximately 14% yoy each

- New 400 Mbit/s high-speed offerings in Potsdam are planned to be extended to a broader customer base in the future

Berlin, 12 May 2015. Tele Columbus Group, the third largest German cable network operator, started the financial year 2015 with gains in all relevant key figures. Revenues grew by 2.2% year on year to EUR 53.6 million in the first quarter of 2015. Normalised EBITDA grew significantly by 11.7% year on year to EUR 24.4 million in Q1 2015, showing continuously strong momentum. Operating margin improved to 45.5% of revenue in Q1 2015 compared to 41.6% in Q1 2014. Tele Columbus continues to invest in its network and technology capabilities. This is reflected in Q1 2015 capital expenditures (Capex) of EUR 15 million which is more than twice the Q1 2014 Capex of EUR 6 million.

The ongoing growth is particularly due to Tele Columbus' high-performance network and the company's success in selling new products to existing customers. As of 31 March 2015, approximately 56% of Tele Columbus' homes connected were upgraded for two-way communication and connected to its own Level 3 network, compared to 55% at the end of the previous year and 53% in 31 March 2014.

Supported by ongoing product innovation and network upgrades, Internet RGUs reached 208,000 at the end of the first quarter 2015 (+13.5% yoy) and Telephony RGUs increased to 175,000 (+13.5% yoy). Compared to the first quarter 2014, the total number of revenue generating units (RGUs) increased from 1.81 to 1.84 million, and subscription of Tele Columbus' services reached 1.46 RGUs per subscriber versus 1.42 RGUs per subscriber at the end of Q1 2014. Tele Columbus' customer base remained fairly stable at 1.26 million subscribers compared to 1.27 million subscribers in the previous year. Monthly average

revenue per user (ARPU) for the first quarter increased from EUR 13.8 to EUR 14.1 compared to the same period in 2014.

Recent developments

In April 2015, Tele Columbus Group acquired several cable network assets with approximately 18.000 homes connected primarily in Eastern Germany. The assets fit well into the ongoing growth and migration strategy providing potential for cross- and upselling additional services.

Tele Columbus has demonstrated the strength of its high performing network by introducing bandwidths of 400 Mbit/s in April 2015 - a new record high in the German consumer market. This offer was launched in Potsdam and is planned to be extended to a broader customer base in the future.

Guidance for the full year 2015 affirmed

Based on the first quarter positive developments of further network migrations and product mix evolving towards higher gross margin products, the Management Board of Tele Columbus confirms its guidance for the full fiscal year 2015:

- revenue growth of between 4.0% to 6.0%,

- an expansion of Normalised EBITDA margin to more than 47.5%,

- Capex between EUR 110 to 120 million,

- to increase the level of two-way upgraded networks connected to own signal to more than 60% by year end,

- to maintain a target leverage of 3.0 to 4.0 times Normalised EBITDA.

In view of the investment requirements over the next few years and in light of current leverage, Tele Columbus does not expect to propose a dividend for fiscal year 2015.

Summary table for Q1 2015 and Q1 2014:

EURm Q1 2014 Q1 20151 yoy %
Revenue 52.4 53.6 2.2
       
Normalised EBITDA2 21.8 24.4 11.7
Normalised EBITDA margin, % 41.6 45.5 3.9ppt
       
Capex 6.0 14.7 144
Capex / Revenue, % 11.5 27.4 15.9ppt
       
EUR per month      
Total blended ARPU
RGU as per end of period (in '000)
Internet
Telephony
Premium TV
13.8

183
154
165
14.1

208
175
161

2.5

13.5
13.5
(2.5)

1 Includes RFC Radio-, Fernseh- u. Computertechnik GmbH which Tele Columbus repurchased in January 2015

2 We define Normalized EBITDA as earnings before financial result (income from investments in associates, interest income, interest expenses and other financial results by the equity method) income taxes, amortisation of intangible assets and goodwill, adjusted for
extraordinary expenses.

Additional information:

Annual General Meeting: 15 May 2015 Release of Q2 and 6M results: 7 August 2015

 

About Tele Columbus

The Tele Columbus Group is one of Germany's largest cable network operators. Via its origins - individual regional cable network operators that were merged into Tele Columbus - the company dates back to 1972. About 1.7 million connected households in Germany use Tele Columbus' TV signals and, increasingly, digital broadcast packages, Internet and voice connections provided via high-performance broadband cable. As a national provider with a regional focus and a partner of the housing industry, the Group is present throughout its core markets Berlin, Brandenburg, Saxony, Saxony-Anhalt and Thuringia as well as in numerous key regions in western Germany. In tune with current demand trends, the company is upgrading its networks in a hybrid fibre-optic infrastructure for superfast Internet connections of up to several hundred megabits per second with the state-of-the-art Internet transmission standard DOCSIS 3.0. The broadband cable caters to the entire range of innovative media applications from analogous, digital and high-definition TV to high-speed Internet and voice connections to telemetry services, tenant portals and interactive services. Beyond merely transmitting signals, Tele Columbus uses its own product platform in order to actively increase the programme offering and to develop additional services.

 

Disclaimer

This Investor Relations release may contain forward-looking statements. These statements are based on management's current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Although we believe that such forward-looking statements are reasonable, we cannot assure you that any forward-looking statements will prove to be correct. Such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks and uncertainties, the forward- looking events and circumstances discussed in this Investor Relations release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on the forward-looking statements.

This Investor Relations release may contain references to certain non-GAAP financial measures, such as Normalized EBITDA and Capex, and operating measures, such as RGUs, ARPU, and Unique subscribers calculation. These supplemental financial and operating measures should not be viewed in isolation as alternatives to measures of Tele Columbus's financial condition, results of operations or cash flows as presented in accordance with IFRS in its Consolidated Financial Statements. The non-GAAP financial and operating measures used by Tele Columbus may differ from, and not be comparable to, similarly titled measures used by other companies. For further information please see in particular the Footnotes in this Investor Relations release and the financial statements.

We disclaim any obligation to publicly update or revise any forward-looking statements or other information contained in this Investor Relations release. It is pointed out that the present Investor Relations release may be incomplete or condensed, and it may not contain all material information concerning Tele Columbus AG or the Tele Columbus group.

Tele Columbus: strong Normalised EBITDA growth continues in first quarter 2015

- Normalised EBITDA increased by 11.7% year on year to EUR 24.4 million

- Revenues improved by 2.2% year on year to EUR 53.6 million; total operating performance increased to EUR 59.0 million (up 7.1% yoy)

- Internet RGUs reached 208,000 and telephony RGUs reached 175,000, remaining key growth drivers with an increase of approximately 14% yoy each

- New 400 Mbit/s high-speed offerings in Potsdam are planned to be extended to a broader customer base in the future

Berlin, 12 May 2015. Tele Columbus Group, the third largest German cable network operator, started the financial year 2015 with gains in all relevant key figures. Revenues grew by 2.2% year on year to EUR 53.6 million in the first quarter of 2015. Normalised EBITDA grew significantly by 11.7% year on year to EUR 24.4 million in Q1 2015, showing continuously strong momentum. Operating margin improved to 45.5% of revenue in Q1 2015 compared to 41.6% in Q1 2014. Tele Columbus continues to invest in its network and technology capabilities. This is reflected in Q1 2015 capital expenditures (Capex) of EUR 15 million which is more than twice the Q1 2014 Capex of EUR 6 million.

The ongoing growth is particularly due to Tele Columbus' high-performance network and the company's success in selling new products to existing customers. As of 31 March 2015, approximately 56% of Tele Columbus' homes connected were upgraded for two-way communication and connected to its own Level 3 network, compared to 55% at the end of the previous year and 53% in 31 March 2014.

Supported by ongoing product innovation and network upgrades, Internet RGUs reached 208,000 at the end of the first quarter 2015 (+13.5% yoy) and Telephony RGUs increased to 175,000 (+13.5% yoy). Compared to the first quarter 2014, the total number of revenue generating units (RGUs) increased from 1.81 to 1.84 million, and subscription of Tele Columbus' services reached 1.46 RGUs per subscriber versus 1.42 RGUs per subscriber at the end of Q1 2014. Tele Columbus' customer base remained fairly stable at 1.26 million subscribers compared to 1.27 million subscribers in the previous year. Monthly average

revenue per user (ARPU) for the first quarter increased from EUR 13.8 to EUR 14.1 compared to the same period in 2014.

Recent developments

In April 2015, Tele Columbus Group acquired several cable network assets with approximately 18.000 homes connected primarily in Eastern Germany. The assets fit well into the ongoing growth and migration strategy providing potential for cross- and upselling additional services.

Tele Columbus has demonstrated the strength of its high performing network by introducing bandwidths of 400 Mbit/s in April 2015 - a new record high in the German consumer market. This offer was launched in Potsdam and is planned to be extended to a broader customer base in the future.

Guidance for the full year 2015 affirmed

Based on the first quarter positive developments of further network migrations and product mix evolving towards higher gross margin products, the Management Board of Tele Columbus confirms its guidance for the full fiscal year 2015:

- revenue growth of between 4.0% to 6.0%,

- an expansion of Normalised EBITDA margin to more than 47.5%,

- Capex between EUR 110 to 120 million,

- to increase the level of two-way upgraded networks connected to own signal to more than 60% by year end,

- to maintain a target leverage of 3.0 to 4.0 times Normalised EBITDA.

In view of the investment requirements over the next few years and in light of current leverage, Tele Columbus does not expect to propose a dividend for fiscal year 2015.

Summary table for Q1 2015 and Q1 2014:

EURm Q1 2014 Q1 20151 yoy %
Revenue 52.4 53.6 2.2
       
Normalised EBITDA2 21.8 24.4 11.7
Normalised EBITDA margin, % 41.6 45.5 3.9ppt
       
Capex 6.0 14.7 144
Capex / Revenue, % 11.5 27.4 15.9ppt
       
EUR per month      
Total blended ARPU
RGU as per end of period (in '000)
Internet
Telephony
Premium TV
13.8

183
154
165
14.1

208
175
161

2.5

13.5
13.5
(2.5)

1 Includes RFC Radio-, Fernseh- u. Computertechnik GmbH which Tele Columbus repurchased in January 2015

2 We define Normalized EBITDA as earnings before financial result (income from investments in associates, interest income, interest expenses and other financial results by the equity method) income taxes, amortisation of intangible assets and goodwill, adjusted for
extraordinary expenses.

Additional information:

Annual General Meeting: 15 May 2015 Release of Q2 and 6M results: 7 August 2015

 

About Tele Columbus

The Tele Columbus Group is one of Germany's largest cable network operators. Via its origins - individual regional cable network operators that were merged into Tele Columbus - the company dates back to 1972. About 1.7 million connected households in Germany use Tele Columbus' TV signals and, increasingly, digital broadcast packages, Internet and voice connections provided via high-performance broadband cable. As a national provider with a regional focus and a partner of the housing industry, the Group is present throughout its core markets Berlin, Brandenburg, Saxony, Saxony-Anhalt and Thuringia as well as in numerous key regions in western Germany. In tune with current demand trends, the company is upgrading its networks in a hybrid fibre-optic infrastructure for superfast Internet connections of up to several hundred megabits per second with the state-of-the-art Internet transmission standard DOCSIS 3.0. The broadband cable caters to the entire range of innovative media applications from analogous, digital and high-definition TV to high-speed Internet and voice connections to telemetry services, tenant portals and interactive services. Beyond merely transmitting signals, Tele Columbus uses its own product platform in order to actively increase the programme offering and to develop additional services.

 

Disclaimer

This Investor Relations release may contain forward-looking statements. These statements are based on management's current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Although we believe that such forward-looking statements are reasonable, we cannot assure you that any forward-looking statements will prove to be correct. Such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks and uncertainties, the forward- looking events and circumstances discussed in this Investor Relations release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on the forward-looking statements.

This Investor Relations release may contain references to certain non-GAAP financial measures, such as Normalized EBITDA and Capex, and operating measures, such as RGUs, ARPU, and Unique subscribers calculation. These supplemental financial and operating measures should not be viewed in isolation as alternatives to measures of Tele Columbus's financial condition, results of operations or cash flows as presented in accordance with IFRS in its Consolidated Financial Statements. The non-GAAP financial and operating measures used by Tele Columbus may differ from, and not be comparable to, similarly titled measures used by other companies. For further information please see in particular the Footnotes in this Investor Relations release and the financial statements.

We disclaim any obligation to publicly update or revise any forward-looking statements or other information contained in this Investor Relations release. It is pointed out that the present Investor Relations release may be incomplete or condensed, and it may not contain all material information concerning Tele Columbus AG or the Tele Columbus group.

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Tele Colum­bus AG

Kai­se­rin-Augusta-Allee 108,
10553 Ber­lin

Tel +49 (30) 3388 - 3330
Fax +49 (30) 3388 - 3330
Leonhard Bayer
Tel