- VodafoneZiggo revenue remains largely stable in third quarter
- Operating profit (Adjusted EBITDA) grew slightly by 0.8 per cent compared to Q3 2023
- The company is on track to meet its financial targets for 2024
- Substantial improvement in customer churn compared to last year
- Sustainability: Platinum medal awarded by EcoVadis
VodafoneZiggo reported a stable third quarter. Compared to the same quarter last year, revenue remained largely stable, at €1.029 billion. Operating profit (Adjusted EBITDA) rose 0.8 per cent to €480 million. This was mainly due to solid cost control, despite broadcast costs of UEFA European football matches and collective salary increases. With the strong results in the first nine months of this year, the telecoms company is fully on track to meet its 2024 financial targets.
Ritchy Drost, CFO of VodafoneZiggo, on the third quarter: ‘In September, we made a flying start with the broadcasting of UEFA club football via our sports channel Ziggo Sport. We are now seeing a positive impact of this on our brand consideration. Otherwise, we see no surprises in the third quarter. Our revenue and EBITDA are stable. At the same time, we have been seeing a very competitive telecoms market with a lot of deep price and product promotions for a few years now. Nevertheless, we see a significant improvement in our customer churn compared to last year.’
Consumer segment
The number of mobile customers (post-paid) in the consumer segment increased by 12,000 this quarter and the number of internet customers in the fixed consumer market decreased by 25,500. This decrease is less than in the previous quarter and compared to 2023.
VodafoneZiggo is implementing a comprehensive programme to further enhance customers' user experience. This includes continuously adding attractive content and faster internet speeds. At the same time, the company is taking steps to further optimise quality and service. This is now resulting in ever-higher customer satisfaction.
Business segment
In the business segment, 5,000 internet connections were added in the third quarter, mainly in the small business segment. At the same time, the number of mobile customers fell by 9,000 due to the expiry of local government contracts in 2023. Despite this, mobile revenue in the business segment increased by 3.3 per cent compared to last year.
Other results
VodafoneZiggo saw an increase in average revenue per customer (ARPU) in the third quarter. In fixed services, the increase was 0.7 per cent, while in mobile services it was 2.6 per cent.
VodafoneZiggo's investments (CAPEX) amounted to 19.0 per cent of revenue in the third quarter. Among other things, the company invested in its infrastructure, including the video platform for the more than 500 European football matches to be broadcast via Ziggo Sport and Ziggo GO app from September. VodafoneZiggo also continued to invest heavily in equipment in customers' homes, including the further rollout of the media box Next Mini and SmartWifi Pods.
Business segment
In the business segment, 5,000 internet connections were added in the third quarter, mainly in the small business segment. At the same time, the number of mobile customers fell by 9,000 due to the expiry of local government contracts in 2023. Despite this, mobile revenue in the business segment increased by 3.3 per cent compared to last year.
Other results
VodafoneZiggo saw an increase in average revenue per customer (ARPU) in the third quarter. In fixed services, the increase was 0.7 per cent, while in mobile services it was 2.6 per cent.
VodafoneZiggo's investments (CAPEX) amounted to 19.0 per cent of revenue in the third quarter. Among other things, the company invested in its infrastructure, including the video platform for the more than 500 European football matches to be broadcast via Ziggo Sport and Ziggo GO app from September. VodafoneZiggo also continued to invest heavily in equipment in customers' homes, including the further rollout of the media box Next Mini and SmartWifi Pods.
Sustainability
EcoVadis, an international authority on sustainability ratings, awarded VodafoneZiggo a Platinum medal last quarter. This places the company in the top 1% of best performing companies in the world in terms of corporate social responsibility.
In addition, VodafoneZiggo recently successfully launched a second green bond.
The company remains committed to financing sustainable projects. At the same time, this transaction allowed VodafoneZiggo to refinance an old loan at attractive interest rates.
