Total revenues in April, May and June increased 3% year-on-year to over €1 billion. Business customers looking for a fixed internet and telephone connection knew how to find the telecom provider, among other things to enable remote working. Hybrid working, as combining working from home with commuting to the office is called, seems to be here to stay even after lockdowns.
The easing of lockdowns also had an effect on VodafoneZiggo’s consumer branch. Customers again took out more mobile subscriptions whereby they bought a new telephone. Financial CEO Ritchy Drost thinks this has to do with the reopening of stores. In addition, new smartphones came onto the market from Apple and Samsung, which attracted new customers. VodafoneZiggo earned less per mobile customer, because customers did not exceed their data bundle as often as during the lockdown months of last year.
According to Drost, sustained growth figures show that VodafoneZiggo can compete well in a market that is no longer growing strongly. The company aims to reinvest about 20% of its turnover in the network and new services, including the expansion of the 5G network. By the way, profits fell slightly.
Adjusted earnings before taxes, interest and amortization decreased year-over-year by 2% to €473 million. This was partly because VodafoneZiggo benefited from lower production costs for Ziggo Sport last year due to the cancellation of many matches, but that ‘advantage’ disappeared this year.
Recently, the company, together with the Swedish network provider Ericsson, tested for the first time a commercial 5G connection on the frequency of 26 gigahertz, which have yet to be auctioned by the Netherlands. Internet connections via this frequency will allow even greater data throughput, with minimal delay. “That is interesting for business customers, but is also becoming more important for consumers, for example in gaming,” says Drost.
VodafoneZiggo recently had to deal with a setback in the field of TV. The company thought the broadcasting rights for the Formula 1 races were becoming too expensive, so that they will no longer be shown at ZiggoSport next year. Despite this, Drost does not expect a large outflow of TV customers, because the bulk says they are satisfied, according to the financial chief.
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Home worker provides VodafoneZiggo with more business customers | Financial
Source link Home worker provides VodafoneZiggo with more business customers | Financial