DGAP-News: Tele Columbus AG / Key word(s): Quarter Results Tele Columbus AG: Strong Normalised EBITDA growth continues in first quarter 2015 12.05.2015 / 07:00 --------------------------------------------------------------------- PRESS RELEASE Publication of the first quarter results 2015 Tele Columbus: Strong Normalised EBITDA growth continues in first quarter 2015 - Normalised EBITDA increased by 11.7% year on year to EUR 24.4 million - Revenues improved by 2.2% year on year to EUR 53.6 million; total operating performance increased to EUR 59.0 million (up 7.1% yoy) - Internet RGUs reached 208,000 and telephony RGUs reached 175,000, remaining key growth drivers with an increase of approximately 14% yoy each - New 400 Mbit/s high-speed offerings in Potsdam are planned to be extended to a broader customer base in the future Berlin, 12 May 2015. Tele Columbus Group, the third largest German cable network operator, started the financial year 2015 with gains in all relevant key figures. Revenues grew by 2.2% year on year to EUR 53.6 million in the first quarter of 2015. Normalised EBITDA grew significantly by 11.7% year on year to EUR 24.4 million in Q1 2015, showing continuously strong momentum. Operating margin improved to 45.5% of revenue in Q1 2015 compared to 41.6% in Q1 2014. Tele Columbus continues to invest in its network and technology capabilities. This is reflected in Q1 2015 capital expenditures (Capex) of EUR 15 million which is more than twice the Q1 2014 Capex of EUR 6 million. "The successful IPO of Tele Columbus in January was clearly this year's most important event so far to support our growth strategy", says Ronny Verhelst, CEO of Tele Columbus. "In the first quarter of 2015, we continued our profitable growth, based on our clearly defined strategy and our superior cable network. We focused on further network migration and up- and cross selling of additional products to our strong customer base, thereby continuing to strengthen our market position." Ongoing demand for fast internet access and new products drives growth The ongoing growth is particularly due to Tele Columbus' high-performance network and the company's success in selling new products to existing customers. As of 31 March 2015, approximately 56% of Tele Columbus' homes connected were upgraded for two-way communication and connected to its own Level 3 network, compared to 55% at the end of the previous year and 53% in 31 March 2014. Supported by ongoing product innovation and network upgrades, Internet RGUs reached 208,000 at the end of the first quarter 2015 (+13.5% yoy) and Telephony RGUs increased to 175,000 (+13.5% yoy). Compared to the first quarter 2014, the total number of revenue generating units (RGUs) increased from 1.81 to 1.84 million, and subscription of Tele Columbus' services reached 1.46 RGUs per subscriber versus 1.42 RGUs per subscriber at the end of Q1 2014. Tele Columbus' customer base remained fairly stable at 1.26 million subscribers compared to 1.27 million subscribers in the previous year. Monthly average revenue per user (ARPU) for the first quarter increased from EUR 13.8 to EUR 14.1 compared to the same period in 2014. "In the first quarter of 2015, we continued our network investment plan and delivered progress in all our key figures, moving another step towards our mid-term targets. Access to capital markets offers Tele Columbus additional growth potential in Europe's most attractive cable market, which we will continue to utilise for the benefit of all our stakeholders", says Frank Posnanski, CFO of Tele Columbus. Recent developments In April 2015, Tele Columbus Group acquired several cable network assets with approximately 18.000 homes connected primarily in Eastern Germany. The assets fit well into the ongoing growth and migration strategy providing potential for cross- and upselling additional services. Tele Columbus has demonstrated the strength of its high performing network by introducing bandwidths of 400 Mbit/s in April 2015 - a new record high in the German consumer market. This offer was launched in Potsdam and is planned to be extended to a broader customer base in the future. Guidance for the full year 2015 affirmed Based on the first quarter positive developments of further network migrations and product mix evolving towards higher gross margin products, the Management Board of Tele Columbus confirms its guidance for the full fiscal year 2015: - revenue growth of between 4.0% to 6.0%, - an expansion of Normalised EBITDA margin to more than 47.5%, - Capex between EUR 110 to 120 million, - to increase the level of two-way upgraded networks connected to own signal to more than 60% by year end, - to maintain a target leverage of 3.0 to 4.0 times Normalised EBITDA. In view of the investment requirements over the next few years and in light of current leverage, Tele Columbus does not expect to propose a dividend for fiscal year 2015. Summary table for Q1 2015 and Q1 2014: EURm Q1 2014 Q1 2015 yoy % Revenue 52.4 53.6 2.2 Normalised EBITDA 21.8 24.4 11.7 Normalised EBITDA margin, % 41.6 45.5 3.9ppt Capex 6.0 14.7 144 Capex / Revenue, % 11.5 27.4 15.9ppt EUR per month Total blended ARPU 13.8 14.1 2.5 RGU as per end of period (in '000) Internet 183 208 13.5 Telephony 154 175 13.5 Premium TV 165 161 (2.5) Additional information: Annual General Meeting: 15 May 2015 Release of Q2 and 6M results: 7 August 2015 ______________________ About Tele Columbus The Tele Columbus Group is one of Germany's largest cable network operators. Via its origins - individual regional cable network operators that were merged into Tele Columbus - the company dates back to 1972. About 1.7 million connected households in Germany use Tele Columbus' TV signals and, increasingly, digital broadcast packages, Internet and voice connections provided via high-performance broadband cable. As a national provider with a regional focus and a partner of the housing industry, the Group is present throughout its core markets Berlin, Brandenburg, Saxony, Saxony-Anhalt and Thuringia as well as in numerous key regions in western Germany. In tune with current demand trends, the company is upgrading its networks in a hybrid fibre-optic infrastructure for superfast Internet connections of up to several hundred megabits per second with the state-of-the-art Internet transmission standard DOCSIS 3.0. The broadband cable caters to the entire range of innovative media applications from analogous, digital and high-definition TV to high-speed Internet and voice connections to telemetry services, tenant portals and interactive services. Beyond merely transmitting signals, Tele Columbus uses its own product platform in order to actively increase the programme offering and to develop additional services. Press Contact: Hannes Lindhuber Phone +49 (30) 3388 4170 Fax +49 (30) 3388 9 1999 [email protected] www.telecolumbus.com --------------------------------------------------------------------- 12.05.2015 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Tele Columbus AG Goslarer Ufer 39 10589 Berlin Germany Phone: +49 (0)30 3388 4177 Fax: +49 (0)30 3388 9 1999 E-mail: [email protected] Internet: www.telecolumbus.de ISIN: DE000TCAG172 WKN: TCAG17 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange End of News DGAP News-Service --------------------------------------------------------------------- 356049 12.05.2015