Com Hem to build out network, targets single dwelling market

Swedish cable operator Com Hem plans to build out its fibre network to pass an additional 800,000 homes over the next few years following a trial in June. Com Hem today reported solid revenue, EBITDA and customer growth for the second quarter, with revenue up 4.3% to SEK1.3 billion (€137 million) following price adjustments that affected half its base.

Com Hem is to target the single dwelling unit market to drive its next phase of growth following a trial in June, supplementing its core multi-dwelling unit base.

The company said its ambition is to become an operator with national reach in broadband and TV. The group plans to build out fibre to most of the 500,000 customers of digital-terrestrial pay TV service Boxer, which it has agreed to buy, with completion of that deal expected in the second half pending regulatory and other approvals.

The cable company said that the single dwelling unit market would be its “next major growth pillar”.

Com Hem posted underlying EBITDA of SEK607 million, up 4.1%. the number of residential customers rose by 6,000 to 926,000, with digital TV customers totalling 636,000. Com Hem’s advanced TiVo TV offering added 4,000 customers to take it to 37% of the overall TV base. Broadband customers numbered 679,000, up 6,000.

Com Hem said that Boxer should generate underlying EBITDA of SEK300 million and operating free cash flow of SEK 200 million.

“We are very happy with our progress so far in 2016 including our new focus on the SDU market, the acquisition of Boxer, and the rebranding campaign. We firmly believe that these initiatives will lay the foundation for further success in the second half of 2016 and beyond,” said CEO Anders Nilsson.

Separately, Com Hem’s board agreed to initiate a share buyback program for a total amount of up to SEK450 million up until November 30 this year, following approval of the programme by the company’s annual general meeting in May.