Com Hem “grows steadily”
November 3, 2015
Swedish triple-play provider Com Hem has reported Q3 revenues of SEK 1,255 million (€134m), up 3.7 per cent, thanks in part to healthy growth in the consumer business. Underlying EBITDA amounted to SEK 590 million, up 2.6 per cent, driven by revenue growth partially offset by revenue mix. Com Hem’s digital TV subs grew by 4,000 and TiVo by 9,000.
During the third quarter, Com Hem repurchased 3,800,911 shares, corresponding to 1.8 per cent of the total number of registered shares, for SEK 278 milliom (SEK 73.02 per share). During the period May to September, Com Hem remunerated shareholders through a cash dividend, share redemption and share repurchases totalling SEK 689 million, representing 4.9 per cent of our market capitalisation at September 30th.
Anders Nilsson, CEO, Com Hem, commented: “I summarise this quarter as a solid one in which the business delivered successfully on our long-term plan, while investing in the pillars of our future growth. We continue to grow subscribers steadily, as we continue our shift from volume to price and volume-led growth. We grew our consumer base by 9,000 to 903,000 customers, with an additional 11,000 broadband subscribers and 4,000 digital TV subscribers. Our TiVo penetration rate is 34 per cent of our TV customer base, adding 10,000 customers to a total of 213,000 – a remarkable achievement since our launch two years ago.”
“Our strong focus on operational improvement continues to yield real benefits. We achieved a record-low consumer churn rate of 12.9 per cent, compared with 13.7 per cent in the second quarter and 14.8 per cent in third quarter 2014, benefiting from falling churn on all consumer services. This represents a particularly rapid recovery from the price rise activity in Q2.”
“Q3 was also a quarter of significant progress in improving the quality of our TV and broadband services.
- We continue to invest in our broadband leadership strategy, emphasising the superior quality that our unique cable network offers – both on fixed speeds and wi-fi. Thanks to this investment, we continue to lead our competitors in the Netflix speed index month after month.
- Our new TV Everywhere service – branded Com Hem Play – was launched in mid-September exclusively to our TiVo customers, replacing our previous TiVoToGo service. It offers significantly improved interface and navigation than the previous version. Reach of Com Hem Play rose 58 per cent compared to TiVoToGo, while total streaming volume up by over 200 per cent compared with the month preceding launch.
- We have renewed our partnerships with TV4 and Netflix during the quarter, giving us the opportunity to continue to strengthen our entertainment offer to our TV and broadband customers.”