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Ziggo to address churn as Q1 sales growth slows to 0.2%
2013-04-17 09:23:00| Telecompaper Headlines
(Telecompaper) Ziggo reported first quarter revenues up 0.2 percent from the year before to EUR 387.8 million, despite a 5.8 percent decline in telephony revenues. The consumer market contracted (-0.6%), while the business market continued to grow (+11.7%). CEO Bernard Dijkhuizen said churn remains high. Ziggo will therefore initiate new loyalty campaigns in Q2, with a strong focus on customer retention. Adjusted EBITDA lifted 3.0 percent to EUR 222.6 million, with the EBITDA margin up slightly to 57.4 percent, while the net profit increased to EUR 92.6 million, or EUR 0.46 per share, from a loss of 14.5 million or EUR 0.07 per share a year ago. The net cash flow was up 8.3 percent to EUR 160.1 million. The number of All-in-1 bundle subscribers rose by 31,000 in the quarter, up 2.2 percent from Q4 and 8.3 percent year-on-year. All-in-1 bundle penetration reached 52.2 percent of Ziggo's consumer customer base. The cable operator added 24,000 internet subscribers, the number of digital subscribers went up by 4,000 to 2.260 million, and it added 33,000 telephony customers for a total 1.525 million at end-March. Ziggo reiterated its guidance for 2013 EBITDA up 2.5-3.5 percent, but cut the revenue outlook, saying it now expects revenue growth, excluding 'other revenues', at the low end of EBITDA growth. It previously expected revenues to grow slightly faster than EBITDA. The company expects improved revenue momentum over the course of the year as marketing and retention initiatives take effect.