VodafoneZiggo Q3 turnover improves by 1.8%

VodafoneZiggo Group B.V. (“VodafoneZiggo”), a leading Dutch company that provides fixed, mobile and integrated communication and entertainment services to consumers and businesses, is today providing select, preliminary unaudited financial1 and operating information for the three months (“Q3”) and nine months (“YTD”) ended September 30, 2021, as compared to the results for the same periods in the prior year (unless otherwise noted). The financial and operating information contained herein is preliminary and subject to change. We expect to issue our September 30, 2021 unaudited condensed consolidated financial statements prior to the end of November 2021, at which time the report will be posted to our website.

Highlights for Q3 2021:

• Robust commercial performance:
  • Fixed Mobile Convergence (“FMC”) gained further traction with 49,000 converged2 SIMs3 and 9,000 converged households added, driving improvements in Net Promoter Scores (“NPS”) and reduced churn. FMC households have, on average, 10 points higher NPS and are 50% less inclined to churn compared to non-FMC households in the quarter
  • Added 67,000 mobile postpaid SIMs, bringing the YTD total to 184,000 net additions
  • Delivered 3% fixed ARPU4 growth. Total internet RGUs5 of 3.3 million, declining 10,500 or 0.3% in the quarter
• Strong financial growth and cash flow generation:
  • Revenue grew 2% YoY, marking our tenth consecutive quarter of growth, primarily driven by mobile customer base growth, roaming and visitor recovery, and fixed ARPU growth
  • Net loss remained stable YoY at €21 million, as higher gains on our derivative portfolio fully offset higher foreign currency exchange losses and lower operating income
  • Adjusted EBITDA6 increased 2% YoY to €490 million, driven by revenue growth and cost discipline. Adjusted EBITDA margin increased 0.3pp YoY to 47.9%
  • Adjusted EBITDA less P&E Additions7,8 increased 9% YoY to €324 million, driven by lower property and equipment spend and Adjusted EBITDA growth
• Continuously improving customer experience:
  • 2.2 million customers received a free modem software upgrade, enabling Mesh WiFi technology to optimize in-home connectivity
  • New, network integrated, high-end SmartWiFi pods launched to help deliver in total 1 million Mesh WiFi pods to our customers by the end of 2021
  • Over 60% of our connected households are now upgraded to 1 Gbps internet speeds, including 1.2 million new customer homes added in the third quarter. Nationwide coverage planned for 2022
• 2021 guidance9 updated:
  • Around 2% Adjusted EBITDA growth (previously 1%-3% growth)
  • 19%-21% of property and equipment addition as % of revenue (unchanged)
  • At least €600 million cash distribution (previously €550 – €650 million)

Jeroen Hoencamp, VodafoneZiggo CEO, commented:
“Our customers remain our biggest focus. They expect high-speed and stable connectivity, wherever they are, and regardless of the technology used. That is why we continue to invest in our customers by realizing a Dutch Gigabit society, with our 1 Gigabit national roll-out program, nationwide 5G coverage, new SmartWiFi pods to maximize the in-home customer experience, a dedicated WiFi Crew, and ever faster internet speeds. Our good momentum continued in the third quarter, with strong mobile customer growth, an increase of our FMC penetration, and a broadly stable broadband customer base. As we yet again recorded strong revenue and EBITDA growth, I am confident that we will achieve around 2% EBITDA growth for the year, supporting at least €600 million cash distributions.”
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