Tele Columbus growth accelerates
November 18, 2014
Tele Columbus Group, the third largest German cable network operator, continues to deliver on its strategy of profitable and accelerating growth over the first nine months of this financial year.
Revenues grew by 3.8 per cent to €159.3 million in the nine months ended September 30th 2014 compared to the same period 2013. Normalised EBITDA increased by 10 per cent year on year to €72.9 million over the first nine months. Normalised EBITDA margin (as per cent of revenues) increased to 45.8 per cent for the nine months ended 30 September 2014 from 43.2 per cent in 2013. From July to September 2014, revenues grew by 5.5 per cent to €53.9 million compared with the previous year and normalised EBITDA increased to €25.7 million, up 10 per cent.
Year-to-date growth is primarily due to Tele Columbus’ increasing success in selling additional products beyond its traditional cable TV service to existing clients (so-called up-selling and cross-selling). In particular, the fast internet access and telephony businesses have demonstrated strong momentum. The successful up- and cross-selling of additional products is a cornerstone of Tele Columbus’ growth strategy. Many regions in which the company operates its own cable network have been upgraded for two-way communication and therefore allow for much faster data downloads and uploads than DSL. Further investments in technology upgrades will systematically increase the company’s share of connected households who utilise the company’s own TV signals and products.
In Q3 2014, the company acquired 100 per cent of the shares in BIG Medienversorgung GmbH, Mönchengladbach (with approximately 12,700 connected households in North Rhine-Westphalia, Baden-Württemberg and Berlin) and the remaining shares in the joint venture company BMB (operating a broadband cable network in North Rhine-Westphalia). Supported by its new product offerings and Triple Play packages which have been well received in the market, Tele Columbus expects its positive business development to continue throughout the remainder of the year.
“We have a clear strategic focus on sustainable profitable growth and continue to concentrate on increasing the market position and economic strength of Tele Columbus. We are particularly pleased that our investment program is delivering such tangible benefits, in terms of EBITDA growth, at such an early stage”, explained CEO Ronny Verhelst.