15/08/2016

 

  • In the second quarter, revenues grew by 120.7% from EUR 54.3 million to EUR 119.9 million year on year due to the consolidation effect of primacom and pepcom; on a pro forma basis the revenues increased strongly by 4.2%
  • Normalised EBITDA for the second quarter reached EUR 59.0 million, up 113.0% from EUR 27.7 million in the previous year’s period; on a pro forma basis Normalised EBITDA was up 2.3% year on year
  • Increase of Normalised EBITDA margin from 48.6% in Q1 FY2016 to 49.2%
  • Total capital expenditures amounted to EUR 28.3 million (23.7% of revenues) compared to EUR 19.5 million in Q1 FY2016 and EUR 23.4 million standalone in Q2 FY2015
  • Homes connected on 30 June 2016 were up 3k to 3,596k (from 3,593k end of Q1 FY2016)
  • Tele Columbus Group added more than 10k Internet RGUs and roughly 11k Telephony RGUs in the quarter
  • 1.57 RGUs per subscriber (31 March 2016: 1.56x, 31 December2015: 1.55x)
  • Total blended ARPU significantly increased to EUR 16.5 in Q2 FY2016 (Q1 FY2016: EUR 15.9, Q4 FY2015: EUR 15.7)
  • All FY2016 targets with stable homes connected, mid single digit percentage revenue growth versus FY2015, high single digit percentage Normalised EBITDA growth year on year and Capex of 35% to 38% of revenues confirme

Berlin, 15 August 2016. Tele Columbus AG (“Tele Columbus”, “Company” or “the Group”), the third largest German cable operator, published its financials for the second quarter of fiscal year 2016. The Group again reported strong growth with revenues of EUR 119.9 million – an increase of more than 120% and a pro forma increase of 4.2% from EUR 115.0 million year on year. The company also successfully increased the Normalised total operating performance which includes own work capitalized amongst others to EUR 126.8 million, up EUR 4.0 million or 3.3% from Q1. Normalised EBITDA for the quarter amounted to EUR 59.0 million, resulting in an increase of 113.0% and a pro forma increase of 2.3% year on year (Q2 FY2015PF: EUR 57.7 million). This led to a Normalised EBITDA margin of 49.2%, 0.6ppt up from the first quarter of FY2016. In the reported period, Tele Columbus Group spent EUR 28.3 million capital expenditures, together with the EUR 19.5 million in the first quarter a total of 47.8 million for the first six months (20.2% of revenues) which is still significantly below the full year guidance of 35% to 38% as percentage of revenues. 

Therefore the Management Board of Tele Columbus reiterates its guidance for fiscal year 2016 expecting

  • stable homes connected of approximately 3.6m, a
  • mid single digit percentage revenue growth versus FY2015, a
  • high single digit percentage Normalised EBITDA growth year on year and
  • Capex of 35% to 38% of revenues.

As of 30 June 2016, the Group reported 3.6 million homes connected, approximately 3k up from 31 March 2016. The Company served 2.42 million customers which translates into 2.44 million Cable TV RGUs (Revenue Generating Units), 424k Premium TV RGUs, 485k Internet RGUs and 452k Telephony RGUs which is an increase of 10k for Internet and roughly 11k for Telephony versus the end of the previous quarter. Thus, the number of RGUs per subscriber increased to 1.57x, up 0.01x from the end of the first quarter while the total blended average revenues per user (ARPU) rose significantly from EUR 15.9 per month in the first quarter 2016 to EUR 16.5.

“In the second quarter, we have again successfully managed to develop all relevant company KPIs as intended”, stated CEO Ronny Verhelst, showing his satisfaction. “To support this development long-term, we have defined four key strategic initiatives that we are driving consequently: It is our clear intent to generate organic growth, to make use of the M&A opportunities in the German cable market, to exploit the synergies from the integration of the acquired companies and to expand our business customer activities. Everything we do is contributing to these strategic initiatives and pushing our long-term success.”

On 6 April 2016, Tele Columbus launched a new entry level mobile product called “Mobil 50 LTE Smart” for EUR 9.99 per month offering 500 MB data, 300 minutes (or SMS respectively) flat phone into the German fixed and mobile networks and access to the Group’s Community Wifi.

On 6 April 2016, Tele Columbus jointly released with Espial the results of its “advance TV” trial. Friendly users were impressed by the system’s clarity and the Premium EPG’s content. As a result, almost 70% of trial participants regularly used the system to discover content and learn about the TV program they ultimately choose to watch. The mass market launch is expected for December 2016.

On 11 April 2016, Tele Columbus Group hosted its first Capital Markets Day in the city of Berlin. Approximately 60 sell side analysts, equity and credit investors attended the presentations in person. On this occasion, Tele Columbus updated the market on its future strategy and gave 2016 as well as medium term guidance.

On 11 May 2016, the Group launched a big marketing campaign to foster its products ahead of the European Football Championships in June 2016. The integrated 360 degree campaign covered above the line as well as below the line channels and reached approximately 88 million contacts.

Between end of May and early June 2016, the Company signed balance of interests as well as social plans with the workers councils of the different entities and sites of Tele Columbus and primacom respectively. This allowed the company to finally apply the new organisation for both companies and concluded a significant milestone in the integration path of both companies.

On 7 June 2016, Tele Columbus launched the refinancing of its existing EUR 117 million Second Lien Term Loan. On 18 June 2016, the refinancing was accomplished with the successful allocation of a January 2021 EUR 125 million First Lien Term Loan B add-on facility.

On 10 June 2016, the Company hosted its second ordinary Annual General Meeting in Berlin. The shareholders approved the increase of the Supervisory Board from six to eight members to reflect the new major shareholder United Internet in the composition of the Board.

 

On 20 June 2016, Tele Columbus announced a cooperation agreement with Video-on-demand provider ODD (“On demand Deutschland”) giving access to movies from major Hollywood studios such as 20th Century Fox, Warner Bros., Universal or Paramount Pictures. The launch of the Transactional VoD service is planned with the introduction of the new TV platform end of 2016.

On 22 June 2016, Tele Columbus Group started a FTTB/FTTH network in the city of Markt Indersdorf reaching 3,500 homes connected. 70% of households pre-subscribed to the Internet & Telephony products. The Group plans to launch a 1 Gbit/s download speed product for retail households by end of 2016 which means a new market record for area-covering city networks in Germany.

On 24 June 2016, the Group released another 610,000 homes connected in Tele Columbus and roughly 170,000 homes connected in primacom footprint upgraded for 400 Mbit products including larger cities like Berlin, Erfurt, Dresden, Leipzig or Halle. The Group now markets its 400 Mbit products to approximately 840,000 homes connected.

Recent developments

On 14 July 2016, the Tele Columbus AG was honoured with the Corporate Finance Award by the Börsen-Zeitung, one of the most renowned national business media for capital markets in Germany. The prize was awarded in 5 categories for the strategically and financially most outstanding transactions in 2015. Tele Columbus was elected in the category small/mid caps due to its consequent and successful acquisition strategy and the professional financing of the transactions.

On 1 August 2016, the Group achieved another important milestone in the integration of its acquired companies and launched a new Internet & Telephony product portfolio for pepcom Group. The new Internet & Telephony products, marketed under the brandname cablesurf, offer speeds between 20 Mbit/s and 400 Mbit/s and give access to Tele Columbus’ free Community Wifi service.

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