Despite ongoing challenges, German cable operator Tele Columbus is demonstrating resilience in the face of regulatory changes impacting its television services. While the company continues to experience a decline in its TV customer base, its overall financial performance reveals a more nuanced picture.
In Q1 2025, Tele Columbus reported a 3.6% quarter-on-quarter revenue increase, reaching €104.9 million. Notably, TV revenues remained relatively stable at €28.9 million, only slightly lower than the previous quarter's €29.1 million. However, the company's TV customer base continues its downward trend, losing 14,000 subscribers in Q1 2025, resulting in a substantial 39.5% year-on-year decline to approximately 1.1 million customers. This significant drop is directly attributed to a regulatory shift implemented on July 1, 2024, which eliminated the practice of bundling cable TV costs with tenants' rent.
While the TV sector presents challenges, Tele Columbus's broadband and telephony divisions are flourishing. The company saw a robust 10.6% year-on-year surge in broadband customers, with over 80% of new subscribers opting for high-speed 250Mbps or faster plans. This growth is a key factor in the company's overall financial picture.
Although normalised EBITDA dipped by 18.3% to €39.1 million, reported EBITDA saw a 1.1% year-on-year increase to €32.5 million, thanks to reduced one-off expenses. Capital expenditure decreased by 12.9% to €35.9 million, reflecting a continued emphasis on expanding the fiber network. Currently, 199,000 residential units are connected via FTTH, with 86,000 user contracts for internet and telephony services—a 44% penetration rate (compared to 28% for coax).
Tele Columbus acknowledges the highly competitive market landscape, which presents ongoing challenges. The company emphasizes its strategic focus on operational excellence to navigate these conditions and rising costs.