VodafoneZiggo is positive about its financial performance in the third quarter of 2023. Compared to the second quarter of this year, both the revenue and EBITDA increased. With these results, VodafoneZiggo remains on track to meet its targets in terms of revenue and EBITDA. Revenue in the third quarter was stable compared to the same quarter in 2022. In the mobile market as well as the business fixed market, the number of customers grew again.
EBITDA in the third quarter was € 477 million on total revenue of € 1,034 million. In the second quarter of 2023, EBITDA was still € 445 million on revenue of € 999 million. EBITDA declined by 4.1% compared to the third quarter of last year. This is in line with expectations of EBITDA being roughly €100 million lower this year due to higher energy and salary costs.
Commercial results
The number of mobile subscriptions is growing in both the business and consumer segments. The number of business customers for broadband also increased again last quarter. In the consumer market, the fierce competition between fixed internet providers continues.
Revenues from the fixed network increased in the quarter. Ziggo recently introduced attractive new internet packages for new customers and an additional speed increase for all customers. This applies to both the consumer and Small Office Home Office (SOHO) markets.
CFO Ritchy Drost: “In the third quarter of this year, VodafoneZiggo is on track to meet its financial targets for 2023. If you look at our third-quarter revenue and EBITDA, both are increasing steadily in comparison to the previous quarter. Compared to the third quarter of 2022, revenue is stable with a slightly declining EBITDA. This is also in line with our earlier expectations around the increase in energy and salary costs. If we correct for this cost effect, the EBITDA is stable. VodafoneZiggo continues to do well in the mobile and business markets. In the fixed consumer market, revenue is rising again.
The consumer broadband internet market continues to be challenging and competitive. We continue to work purposefully for our customers to execute our strategy of providing maximum value with our products. Our customers have access to world-class networks and the very best content offerings in the Netherlands. To improve this even further we are investing 20.5% of our revenues back into our services and product innovations.”
New internet packages and speed increase
In October this year, Ziggo increased internet speeds again for all customers. In May 2023, the upload speed for customers was already increased by 40-50%. Ziggo has subsequently made major changes to its internet packages for new customers from 1 October 2023. The whole of the Netherlands can now opt for attractively-priced packages with download speeds between 100 Mbps and 1 Gbps – without having to dig up the streets.
Ritchy Drost: “Ziggo always wants to offer customers an exceptional customer experience. That also means that the network should grow along with the customers. In this way, Ziggo ensures that they always have the speed required for all kinds of applications, such as working from home, online learning, 4K streaming and connecting ‘Internet of Things’ products.”
Business contract Municipal Telecommunications
VodafoneZiggo signed a significant contract with the government at the beginning of this quarter. Vodafone Business will continue to provide fixed services to municipalities under the Municipal Telecommunications (Gemeentelijke Telecommunicatie, GT) fixed communications contract for the next five years. Together with the Association of Netherlands Municipalities (Vereniging Nederlandse Gemeenten, VNG), Vodafone Business is contributing to municipalities' ambition to further digitalise local government institutions, thus taking them further into Europe's digital future. This means that VodafoneZiggo provides fixed services to more than 200 municipalities and security regions in the Netherlands, in this way enabling a joint network. The GT Fixed Communications contract has been extended until the end of 2027.
Pathé Home and SkyShowtime
VodafoneZiggo is continuously enriching its range of entertainment content for customers. Content that is easy to find in the familiar Ziggo TV or Ziggo Go environment. Since last quarter, Ziggo has offered streaming service SkyShowtime on Ziggo's TV platform as a successor to the Movies & Series offering.
Since the beginning of July, Ziggo has been expanding the rental film content from 800 to more than 5,000 films via Pathé Thuis, which are immediately available to Ziggo TV customers with a Mediabox Next Mini, Next and XL. Pathé Thuis thus offers movie lovers access to the world of film from the comfort of their own homes. A subscription is not necessary because customers pay per film.
Ziggo Sport also continues to maintain and strengthen its range of content. For example, the Netherlands' biggest sports channel has secured exclusive broadcasting rights to three major athletics tournaments. This means Ziggo Sport will remain the rights holder for the Diamond League, Continental Tour and World Indoor Tour until at least 2029.
Let me hear you say Yeah!
In the last quarter, VodafoneZiggo revived 2Unlimited's 90’s classic “No Limit” for its first-ever employer branding campaign since the joint venture was launched in 2016. In the current tight labour market, the company is continuously looking for new colleagues from all educational levels and in all age categories. Technicians, ICT specialists, shop and helpdesk staff, in particular, are always welcome as new colleagues alongside the 7,000 dedicated colleagues at VodafoneZiggo.
Closing the gap with Digital Participation
VodafoneZiggo has partnered with municipalities, telecom providers and civil society organisations to launch a trial to reduce the growing digital divide. Indeed, 3% of Dutch households do not have a fixed internet connection at home, 11% do not have functioning devices and almost 23% experience challenges to participate in the digital world. The Digital Participation Package provides financially vulnerable households with internet, a device and guidance.
Living Room of the Past (Huiskamer van Toen) at the 50PlusBeurs
Last quarter, VodafoneZiggo toured residential care homes nationwide with the famous Huiskamer van Toen. In it, the elderly could relive the best TV moments of the past. The tour’s highlight was the 50PlusBeurs, the world’s largest event for active seniors, in Utrecht. Along with the Huiskamer van Toen, VodafoneZiggo is also promoting the free teaching programme ‘Welcome Online’ to educate (especially) the elderly to the digital world.
