VodafoneZiggo closed the past financial year with strong fourth-quarter results. That made 2021 a successful year for VodafoneZiggo, one in which the telecom company achieved all of its financial objectives. VodafoneZiggo is also in excellent operational shape: its fixed network was rated the best in January while its mobile network has been rated one of the best in the world for years.
VodafoneZiggo's turnover grew by 1.1% in the fourth quarter of 2021, while the EBITDA even went up by 5.1%. Total turnover rose by 2% compared to 2021, to 4.077 billion euros. The operating result (EBITDA) also grew by 2% to 1.915 billion euros. What’s more, the company invested 20.5% of its turnover - the so-called Capex to Sales ratio - in its network, products, and services.
Ritchy Drost, CFO of VodafoneZiggo: "All of our initiatives are to increase customer satisfaction. We will therefore continue to invest in our networks, products and services, expected to be between 22-24% of our turnover in 2022." VodafoneZiggo will proceed on its current path, says Drost. "In 2022, we will continue our successful strategy, and we will keep investing in our GigaNet; I expect the EBITDA to remain stable or increase slightly."
Investment in GigaNet
VodafoneZiggo's focus is on new technologies, higher speeds, and better coverage. Meanwhile, 73% of customers can opt for 1Gbps internet speeds, based on the DOCSIS 3.1 standard. By the end of this year, this will be 100%, the telecom company confirms. Last year, the company also invested in the best Wi-Fi coverage for customers. Today, almost 1.2 million customers have SmartWifi pods.
Ritchy Drost: "Optimal home WiFi coverage is and will continue to be an important part of our GigaNet. Regardless of the underlying technology, customers expect this from us, because with hybrid working, the need for a fast and stable Wi-Fi network has never been more topical. We will therefore continue to roll out SmartWifi pods in 2022."
Other highlights of 2021
- The 'converged strategy' of VodafoneZiggo is working. More and more households are combining the fixed and mobile services of Ziggo and Vodafone. The number of ‘converged’ customers rose by 31,000 in 2021.
- The Ziggo Go app has 1.9 million active users per month (51% penetration).
- 1.7 million customers have now opted for the latest generation of media boxes, the Mediabox Next and Mediabox XL upgrade (46% penetration).
- In the fourth quarter, VodafoneZiggo successfully launched the Priority customer programme in collaboration with Ajax, Ziggo Dome, MOJO Concerts and The Park Playground. As part of this, customers are given priority when buying tickets for concerts, festivals, football matches and other events.
- In the business segment, the company saw a growth in turnover of 3% over the past year. The number of internet customers grew by 24,000 and the number of mobile customers by 105,000.
- In December, VodafoneZiggo launched a number of cybersecurity services for medium and large enterprise customers, in partnership with Accenture, as part of our strategy to offer high-quality cybersecurity services to organisations of all sizes.
- After issuing so-called 'Green Bonds' in 2020, VodafoneZiggo recently introduced innovative 'Sustainability Linked Bonds'. Both loans support the ambitious goal of 50% CO2 reduction by 2025 compared to 2018.
- VodafoneZiggo added ESPN to its standard package, without any additional charges for customers. This includes a selection of Eredivisie, Europa League and Conference League football matches.
- The company has entered into a multi-year agreement with Viaplay for the broadcast of the highlights of all F1 matches on Ziggo Sport and for the transmission of Viaplay.
- Exclusive broadcasts of the Winter Olympics (via Eurosport 4K) and Champions League football (Ziggo Sport) in 4K resolution.
- Ziggo Sport has a broad and varied package of racing and other sports. The channel will of course continue to invest in new content this year, such as the exclusive rights to live Rugby World Cup matches and partnerships, such as with Dutch tennis player Botic van de Zandschulp.