Tele Columbus AG publishes its results for the first half-year of 2018
- H1 revenues decreased by 2.2% yoy to EUR 240.0m (pro-forma IFRS 15: EUR 240.4m, down 2.0% yoy)
- H1 Normalised EBITDA decreased by 4.5% yoy to EUR 118.0m (pro-forma IFRS 15: EUR 118.3m, down 4.2% yoy)
- Capex in H1 amounted to EUR 77.1m, up 65.5% yoy
- Full year targets for 2018 revised
Berlin, 30 August 2018. Tele Columbus AG (ISIN: DE000TCAG172, WKN: TCAG17, „Tele Columbus“, „Company“ or „the Group“), Germany’s third largest cable operator, today published its results for the first half-year of fiscal year 2018.
The Company has made significant progress in the integration of the three entities Tele Columbus, Primacom and Pepcom. At the end of June 2018 the Company successfully completed the migration of customer data. Following this milestone, Tele Columbus now has all of its customers on one single CRM platform, enabling more efficient customer service, better business processes and faster digitalisation. As a result, Tele Columbus‘ new management board decided to harmonize the definitions which have been historically used by the different group entities and apply a common policy for the recognition of certain group wide KPIs. The common classification will be implemented as of the third quarter 2018.
Furthermore, the integration of the Group’s accounting platforms into one single ERP system is on track to be completed in the third quarter of 2018. However, the complexity of the integration has contributed to the rescheduling of the Company’s half-year reporting.
Tele Columbus is in a year of consolidation. Nonetheless, the business is broadly stable. Revenues in the first half-year of 2018 amounted to EUR 240.0 million, a slight decrease of 2.2% year on year. Pro-forma for the impact of IFRS 15, the revenues amounted to EUR 240.4 million, a decrease of 2.0%. This revenue decline is largely attributable to a reduction in low-margin construction revenues as well as slightly lower TV sales. This is partially compensated by strong B2B revenues which increased by 9.3% year on year to EUR 20.0 million.
Normalised EBITDA in the first half-year of 2018 decreased by 4.5% year on year to EUR 118.0 million (pro-forma IFRS 15: EUR 118.3m, down 4.2% yoy) as a result of lower TV revenues and a higher cost base (eg customer service, signal delivery fees, leased lines for B2B and personnel costs).
In order to deliver a superior product experience, the Company has increased its investments by 65.5% year on year to EUR 77.1 million in the first half-year of 2018. In particular, the Company is investing in fiber infrastructure to better serve housing industry, B2C and B2B customers. These continued investments increase the Company’s bandwidth advantage over DSL based offerings.
Net income excluding minority interests in the first half of 2018 amounted to a loss of EUR 31.3 million compared to a loss of EUR 9.3 million in the first half of 2017. This mainly relates to one-off costs in relation to the issuance of senior secured notes in May 2018 which are however of a non-cash nature.
Due to the finalization of the overall integration project in combination with marketing activities starting in October 2018 the new management board expects a higher recurring cost base and revenue growth delayed. Based on net sales of EUR 240.0 million and a Normalized EBITDA of EUR 118.0 million for the first half of 2018, the new management board has therefore decided to adjust its FY 2018 outlook as follows:
– Stable homes connected
– Stable revenues year on year
– Normalised EBITDA of at least EUR 235 million
– Maximum capex of EUR 150 million
The Normalised EBITDA target includes a significant ramp-up of marketing spend in the second half of 2018. Furthermore, the management board expects significantly reduced non-recurring costs year on year in the second half of 2018 translating into a largely stable year on year development of the Reported EBITDA for FY2018.
The financial report for the first half year 2018 is expected to be available early September 2018. The management board will provide an update on the growth path for the Company early 2019.
As of 30 June 2018, the Group reported approximately 3.6 million homes connected. The number of homes connected and upgraded for two-way communication on own network increased by 0.6% year on year to 2,322 thousand which represents a ratio of 65.2%. Moreover, the Company served 2,327 thousand subscribers which translates into 2,308 thousand CATV RGUs, 419 thousand Premium TV RGUs, 571 thousand Internet RGUs (24.1% penetration) and 539 thousand Telephony RGUs. This represents a decrease of 4 thousand Internet and 8 thousand Telephony RGUs versus the end of the previous quarter. The number of RGUs per subscriber decreased to 1.65x, vs 1.66x by the end of the first quarter 2018. This translated into a revenue decrease according to IFRS 15 of 2.2% year on year in the first half-year 2018 to EUR 240.0 million (pro-forma IFRS 15: EUR 240.4m, down 2.0% yoy). Normalised EBITDA in the first half-year of 2018 decreased by 4.5% year on year under the application of IFRS 15 to EUR 118.0 million (pro-forma IFRS 15: EUR 118.3m, down 4.2% yoy).
29 November 2018: Release of Q3 results FY2018
Summary table (under IFRS 15)
|EURm||Q2 2017||Q2 2018||yoy %||H1 2017||H1 2018||yoy %|
|Normalised EBITDA margin, %||50.2||45.1||(5.1)ppt||50.3||49.2||(1.1)ppt|
|Capex / Revenues, %||19.9||39.2||19.3ppt||19.0||32.1||13.1ppt|
|RGU as per end of period (in ‚000)|
The SDAX-listed Tele Columbus AG serves 3.6 million homes connected thereby being Germany’s third-largest cable network operator. Its brand PŸUR stands for simplicity, performance and fairness in relation to TV and telecommunication products. Via its state-of-the-art fibre network PŸUR offers high-speed broadband internet including fixed-line telephony as well as more than 250 TV channels on a digital entertainment platform which combines linear TV with streaming services. To its housing association partners PŸUR offers flexible models of cooperation and state-of-the-art services such as telemetric and tenant portals. As a full-service partner for municipalities and regional utilities Tele Columbus Group is actively supporting the fibre-based broadband internet expansion in Germany. For its business customers the Group offers carrier services and corporate solutions via its fibre network. Besides its headquarter in Berlin the Company has locations in Hamburg, Leipzig, Ratingen and Unterföhring/Munich. Since January 2015 Tele Columbus AG is traded on the regulated market (Prime Standard) of the Frankfurt Stock exchange and since June 2015 listed in the SDAX.
This release may contain forward-looking statements. These statements reflect the Company’s current knowledge and expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties, assumptions and other factors that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. Such risks, uncertainties and assumptions may cause our actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this 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, which speak only as of the date of this document.
This release contains references to certain non-GAAP financial measures, such as Normalized EBITDA and Capex, and operating measures, such as RGUs, ARPU, and Unique Subscribers calculations. These non-GAAP financial and operating measures should not be viewed in isolation as alternatives to measures of the Company’s financial condition, results of operations or cash flows as presented in accordance with IFRS. The non-GAAP financial and operating measures used by the Company may differ from, and not be comparable to, similarly titled measures used by other companies.
All information contained in this release has been carefully prepared. However, no reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company or any of its directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability whatsoever is accepted by the Company or any of its directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith. The Company does not undertake any obligation to update or revise any information contained in this release, including forward-looking statements, whether as a result of new information, future events or otherwise.