DSL conversion hits Nuuday broadband numbers, but fibre and mobile bases grow

‘Stability’ was the watchword for Danish service provider Nuuday in the second quarter as it achieved modest growth in its mobile and fibre bases but flat or minimal growth in revenue and underlying EBITDA.

The mobile customer base grew by 3,000 subscribers in the second quarter of the year. Nuuday’s total mobile customer base has thus grown for 12 consecutive quarters, generating a total growth in the subscription base of 181,000 over three years.

The number of fibre broadband customers increased by 21,000 new subscribers. During the quarter Nuuday entered into agreements with SEF Fiber and RAH Fiber, which will provide access to a total of 51,000 new homes. Overall, however, the number of customers with fixed broadband fell by 11,000 as a result of the continued conversion from DSL – and to a lesser extent coax – to fibre.

Nuuday service revenue grew by 0.1% year-on-year to DKK3.325 billion, while underlying EBITDA increased by 0.2% YoY to DKK437 million.

Underlying OPEX decreased by 0.4% year-on-year, while underlying CAPEX decreased by 10.9%. Overall, OPEX and CAPEX increased by respectively 4.7% and 17.9%, reflecting, the company said, one-time costs associated with implementing its business transformation.

“Once again, we deliver a stable quarterly report. We have succeeded in stabilizing the business at the same time as we carry out our comprehensive transformation of Nuuday. Now it’s about continued growth, especially in the strategically important areas of mobile and high-speed broadband,” said Nuuday CEO, Jon James.

“We can see in our own data that our customers are becoming more and more satisfied with our products and the customer experiences we offer. The ratings of our good customer experiences therefore serve as an additional motivation for our talented employees, and are a testimony that we are in the process of delivering on our strategy of offering the best digital solutions and the best customer experiences.”