Telecommunications firm VodafoneZiggo increased its revenue slightly in the first quarter, helped in part by growth in the number of mobile subscriptions. However, according to VodafoneZiggo, the number of households served by television, internet and landline telephony has decreased due to continued fierce competition. The telecom provider also saw its operating expenses increase due to higher costs, particularly for personnel and energy.
According to the company, turnover increased by 0.3% year-on-year to just over 1 billion euros. VodafoneZiggo says the loss of customers with fixed Internet connections could be offset by the growth of mobile subscriptions and business broadband services. However, adjusted earnings before tax, interest and amortization and depreciation decreased by more than 8% to 439.6 million euros. This is due to the increase in energy and wage costs due to the collective labor agreement concluded at the end of last year for VodafoneZiggo employees.
The company resulting from the merger of Vodafone and Ziggo plans to achieve its previously set financial targets for 2023. This is based on revenue growth with a decline in operating profit under pressure from higher costs. In a statement, CEO Jeroen Hoencamp of the telecommunications group spoke of “significant headwinds” due to cost inflation, particularly in the energy and wages sector.
It was recently announced that VodafoneZiggo, together with KPN, T-Mobile and DELTA, told Eredivisie clubs they would pay a minimum of €180m a year to be able to broadcast top-flight matches live. The broadcasting rights to Eredivisie matches are still in the hands of ESPN sports channel until 2025. VodafoneZiggo will have exclusive broadcasting rights to the UEFA Champions League and Europa League from 2024.
Source: BNR
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