- VodafoneZiggo starts 2024 with 1.6% year-on-year revenue growth
- Adjusted EBITDA grew 8.8% compared to Q1 2023
- VodafoneZiggo is on track to meet its financial targets for 2024
VodafoneZiggo started the year 2024 with solid first quarter results. Compared to the first quarter last year, revenue increased by 1.6 percent to €1.026 billion and Adjusted EBITDA by 8.8 percent to €478 million. With these results, the company is on track to achieve its financial targets for 2024.
In the first quarter, the number of customers in the mobile postpaid segment grew by 22,300 and in the business broadband segment by 3,100. At the same time, competition remains intense in the fixed consumer market, with the number of customers falling by 26,600 customers this quarter. Average revenue per customer is up 4.2 percent for Ziggo's fixed services and 3.4 percent for Vodafone's mobile services. Customer satisfaction also increased.
EBITDA growth
In the first quarter of 2024, Adjusted EBITDA increased for the first time in a year. The growth came in part from increased revenue and an improved gross margin. In addition, energy and labor costs were lower compared to the same quarter in 2023. Excluding this effect, VodafoneZiggo realized 4% growth in Adjusted EBITDA. For the full year of 2024, VodafoneZiggo expects low single-digit EBITDA growth.
CFO Ritchy Drost of VodafoneZiggo commented, "We started 2024 with good financial results. We are on track to meet our financial targets this year and are focusing on executing our strategy. We deliver on our promise to offer customers the best entertainment and viewing experience. Last quarter we introduced great services such as Apple TV+ and Storytel, as well as Italian top soccer and Top Rank Boxing to Ziggo Sport. I am also looking forward to the next soccer season, in which everyone can follow their favorite clubs in the UEFA Champions League, the UEFA Europe League and the UEFA Conference League exclusively via Ziggo Sport."
From August, Ziggo Sport will have the exclusive broadcasting rights for the UEFA Champions League, the UEFA Europa League and the UEFA Conference League for three years. This brings the three major European club competitions under one roof for the first time. Ziggo Sport offers Dutch soccer fans over 500 live soccer matches per year. The soccer matches of participating Dutch clubs and the three finals remain free to watch for all soccer fans throughout the Netherlands.
Ritchy Drost: "This way we ensure that customers come to Vodafone and Ziggo for all their entertainment needs. This fits with our strategy to offer customers the best entertainment, both online and offline in which we also offer many unique deals to our loyal customers, through our Priority platform."
Highlights first quarter
In February, VodafoneZiggo further announced that it will participate in the 3.5 GHz auction. During the auction, frequency in the 3.5 GHz band will be allocated. VodafoneZiggo has already had a nationwide 5G network since 2020. However, the 3.5GHz band offers opportunities for further development and innovation.
Vodafone Business has entered a partnership with MKB-Nederland, to jointly help entrepreneurs move forward in the field of digitalization. This partnership thus contributes to the goals of the Ministry of Economic Affairs & Climate to ensure that by 2030 at least 95 percent of SMEs have a basic digital level and at least 75 percent adopt digital technologies such as cloud, AI and big data.
VodafoneZiggo announced in mid-March that the company has launched a project to further improve Vodafone's mobile coverage over the next three years on 70 busy rail routes, including in the Schiphol rail tunnel.
At the end of March, VodafoneZiggo published the 2023 Integrated Annual Report. In the report, the company reports on its financial results for 2023 and its progress in sustainability, digital inclusion and governance. Herewith, VodafoneZiggo is anticipating the Corporate Sustainability Reporting Directive (CSRD), the upcoming directive for sustainability reporting. Compared to 2018, the CO2 has reduced by 44%, putting VodafoneZiggo on track to achieve the goal of 50% emissions reduction by the end of 2025.
VodafoneZiggo earned a gold medal in the first quarter from Ecovadis, an organization that rates companies on labor and human rights, environment, ethics and sustainable procurement. This places VodafoneZiggo among the five percent best performing companies in terms of sustainability.