30.08.2018
Tele Columbus AG DE000TCAG172
DGAP-News: Tele Columbus AG: Tele Columbus AG achieves integration milestone and the new management resets the baseline for future growth
DGAP-News: Tele Columbus AG / Key word(s): Quarterly / Interim
Statement/Half Year Results
Tele Columbus AG: Tele Columbus AG achieves integration milestone and the
new management resets the baseline for future growth
30.08.2018 / 19:22
The issuer is solely responsible for the content of this announcement.
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PRESS RELEASE
Tele Columbus AG publishes its results for the first half-year of 2018
Tele Columbus AG achieves integration milestone and the new management
resets the baseline for future growth
- H1 revenues decreased by 2.2% yoy to EUR 240.0m (pro-forma IFRS 15: EUR
240.4m, down 2.0% yoy)
- H1 Normalised EBITDA decreased by 4.5% yoy to EUR 118.0m (pro-forma IFRS
15: EUR 118.3m, down 4.2% yoy)
- Capex in H1 amounted to EUR 77.1m, up 65.5% yoy
- Full year targets for 2018 revised
Berlin, 30 August 2018. Tele Columbus AG (ISIN: DE000TCAG172, WKN: TCAG17,
"Tele Columbus", "Company" or "the Group"), Germany's third largest cable
operator, today published its results for the first half-year of fiscal year
2018.
The Company has made significant progress in the integration of the three
entities Tele Columbus, Primacom and Pepcom. At the end of June 2018 the
Company successfully completed the migration of customer data. Following
this milestone, Tele Columbus now has all of its customers on one single CRM
platform, enabling more efficient customer service, better business
processes and faster digitalisation. As a result, Tele Columbus' new
management board decided to harmonize the definitions which have been
historically used by the different group entities and apply a common policy
for the recognition of certain group wide KPIs. The common classification
will be implemented as of the third quarter 2018.
Furthermore, the integration of the Group's accounting platforms into one
single ERP system is on track to be completed in the third quarter of 2018.
However, the complexity of the integration has contributed to the
rescheduling of the Company's half-year reporting.
Operational Development
Tele Columbus is in a year of consolidation. Nonetheless, the business is
broadly stable. Revenues in the first half-year of 2018 amounted to EUR
240.0 million, a slight decrease of 2.2% year on year. Pro-forma for the
impact of IFRS 15, the revenues amounted to EUR 240.4 million, a decrease of
2.0%. This revenue decline is largely attributable to a reduction in
low-margin construction revenues as well as slightly lower TV sales. This is
partially compensated by strong B2B revenues which increased by 9.3% year on
year to EUR 20.0 million.
Normalised EBITDA in the first half-year of 2018 decreased by 4.5% year on
year to EUR 118.0 million (pro-forma IFRS 15: EUR 118.3m, down 4.2% yoy) as
a result of lower TV revenues and a higher cost base (eg customer service,
signal delivery fees, leased lines for B2B and personnel costs).
In order to deliver a superior product experience, the Company has increased
its investments by 65.5% year on year to EUR 77.1 million in the first
half-year of 2018. In particular, the Company is investing in fiber
infrastructure to better serve housing industry, B2C and B2B customers.
These continued investments increase the Company's bandwidth advantage over
DSL based offerings.
Net income excluding minority interests in the first half of 2018 amounted
to a loss of EUR 31.3 million compared to a loss of EUR 9.3 million in the
first half of 2017. This mainly relates to one-off costs in relation to the
issuance of senior secured notes in May 2018 which are however of a non-cash
nature.
Guidance
Due to the finalization of the overall integration project in combination
with marketing activities starting in October 2018 the new management board
expects a higher recurring cost base and revenue growth delayed. Based on
net sales of EUR 240.0 million and a Normalized EBITDA of EUR 118.0 million
for the first half of 2018, the new management board has therefore decided
to adjust its FY 2018 outlook as follows:
- Stable homes connected
- Stable revenues year on year
- Normalised EBITDA of at least EUR 235 million
- Maximum capex of EUR 150 million
The Normalised EBITDA target includes a significant ramp-up of marketing
spend in the second half of 2018. Furthermore, the management board expects
significantly reduced non-recurring costs year on year in the second half of
2018 translating into a largely stable year on year development of the
Reported EBITDA for FY2018.
The financial report for the first half year 2018 is expected to be
available early September 2018. The management board will provide an update
on the growth path for the Company early 2019.
As of 30 June 2018, the Group reported approximately 3.6 million homes
connected. The number of homes connected and upgraded for two-way
communication on own network increased by 0.6% year on year to 2,322
thousand which represents a ratio of 65.2%. Moreover, the Company served
2,327 thousand subscribers which translates into 2,308 thousand CATV RGUs,
419 thousand Premium TV RGUs, 571 thousand Internet RGUs (24.1% penetration)
and 539 thousand Telephony RGUs. This represents a decrease of 4 thousand
Internet and 8 thousand Telephony RGUs versus the end of the previous
quarter. The number of RGUs per subscriber decreased to 1.65x, vs 1.66x by
the end of the first quarter 2018. This translated into a revenue decrease
according to IFRS 15 of 2.2% year on year in the first half-year 2018 to EUR
240.0 million (pro-forma IFRS 15: EUR 240.4m, down 2.0% yoy). Normalised
EBITDA in the first half-year of 2018 decreased by 4.5% year on year under
the application of IFRS 15 to EUR 118.0 million (pro-forma IFRS 15: EUR
118.3m, down 4.2% yoy).
Upcoming events
29 November 2018: Release of Q3 results FY2018
Summary table (under IFRS 15)
EURm Q2 Q2 yoy % H1 H1 yoy %
2017 2018 2017 2018
Revenues 124.4 116.6 (6.3) 245.4 240.0 (2.2)
Normalised EBITDA 62.4 52.6 (15.7) 123.5 118.0 (4.5)
Normalised EBITDA 50.2 45.1 (5.1)ppt 50.3 49.2 (1.1)ppt
margin, %
Capex 24.7 45.7 85.0 46.6 77.1 65.5
Capex / Revenues, % 19.9 39.2 19.3ppt 19.0 32.1 13.1ppt
RGU as per end of
period (in '000)
CATV 2,392 2,308 2,392 2,308
Internet 549 571 549 571
Telephony 528 539 528 539
PremiumTV 430 419 430 419
About us
The SDAX-listed Tele Columbus AG serves 3.6 million homes connected thereby
being Germany's third-largest cable network operator. Its brand PŸUR stands
for simplicity, performance and fairness in relation to TV and
telecommunication products. Via its state-of-the-art fibre network PŸUR
offers high-speed broadband internet including fixed-line telephony as well
as more than 250 TV channels on a digital entertainment platform which
combines linear TV with streaming services. To its housing association
partners PŸUR offers flexible models of cooperation and state-of-the-art
services such as telemetric and tenant portals. As a full-service partner
for municipalities and regional utilities Tele Columbus Group is actively
supporting the fibre-based broadband internet expansion in Germany. For its
business customers the Group offers carrier services and corporate solutions
via its fibre network. Besides its headquarter in Berlin the Company has
locations in Hamburg, Leipzig, Ratingen and Unterföhring/Munich. Since
January 2015 Tele Columbus AG is traded on the regulated market (Prime
Standard) of the Frankfurt Stock exchange and since June 2015 listed in the
SDAX.
Disclaimer
This release may contain forward-looking statements. These statements
reflect the Company's current knowledge and expectations and projections
about future events. By their nature, forward-looking statements involve a
number of risks, uncertainties, assumptions and other factors that could
cause actual results or events to differ materially from those expressed or
implied by the forward-looking statements. Such risks, uncertainties and
assumptions may cause our actual results, performance or achievements to
differ materially from those expressed or implied by such forward-looking
statements. In light of these risks and uncertainties, the forward-looking
events and circumstances discussed in this release may not occur and actual
results could differ materially from those anticipated or implied in the
forward-looking statements. Accordingly, investors are cautioned not to
place undue reliance on the forward-looking statements, which speak only as
of the date of this document.
This release contains references to certain non-GAAP financial measures,
such as Normalized EBITDA and Capex, and operating measures, such as RGUs,
ARPU, and Unique Subscribers calculations. These non-GAAP financial and
operating measures should not be viewed in isolation as alternatives to
measures of the Company's financial condition, results of operations or cash
flows as presented in accordance with IFRS. The non-GAAP financial and
operating measures used by the Company may differ from, and not be
comparable to, similarly titled measures used by other companies.
All information contained in this release has been carefully prepared.
However, no reliance may be placed for any purposes whatsoever on the
information contained in this document or on its completeness. No
representation or warranty, express or implied, is given by or on behalf of
the Company or any of its directors, officers or employees or any other
person as to the accuracy or completeness of the information or opinions
contained in this document and no liability whatsoever is accepted by the
Company or any of its directors, officers or employees nor any other person
for any loss howsoever arising, directly or indirectly, from any use of such
information or opinions or otherwise arising in connection therewith. The
Company does not undertake any obligation to update or revise any
information contained in this release, including forward-looking statements,
whether as a result of new information, future events or otherwise.
Contact:
Silke Bernhardt
Director Corporate Communications
Phone +49 (30) 3388 4177
Fax +49 (30) 3388 9 1999
[email protected]
www.telecolumbus.com
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30.08.2018 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.
Archive at www.dgap.de
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Language: English
Company: Tele Columbus AG
Kaiserin-Augusta-Allee 108
10553 Berlin
Germany
Phone: +49 (0)30 3388 4177
Fax: +49 (0)30 3388 9 1999
E-mail: [email protected]
Internet: www.telecolumbus.com
ISIN: DE000TCAG172
WKN: TCAG17
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart, Tradegate Exchange
End of News DGAP News Service
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