Tele Columbus (TC1) Q1 2025 earnings summary

Executive summary

• Internet sales grew 10.6% year-over-year and 18.5% quarter-on-quarter, maintaining the fastest growth among German operators despite a price increase and intense competition.

• Revenues for Q1 2025 reached €104.9 million, returning to sequential growth after prior declines, though down 6.6% year-over-year due to a 34.3% drop in TV sales.

• Reported EBITDA increased 1% to €32.5 million, while normalized EBITDA declined 18% to €39.1 million, mainly due to TV bulk migration impacts.

• The TV customer base declined by about 6,000, with 47% retention post-migration, and TV revenue losses only partially offset by internet and telephony growth.

• The company continued restructuring and operational excellence programs, including legal restructuring and FTE reductions.

Financial highlights

• Service revenue from internet and telephony increased by €9 million year-over-year, offsetting some TV revenue losses.

• CapEx (excluding leasing) decreased 13% year-over-year to €35.9 million, reflecting lower network and CPE investments.

• Cash position stood at €88.5 million as of March 31, 2025, with the shareholder loan fully drawn.

• Net loss widened to €109.6 million in Q1 2025, mainly due to higher interest expenses and negative financial results from embedded derivatives.

• Debt from loans and bonds increased to €1,608.3 million, now representing 74.3% of total assets.

Outlook and guidance

• Formal EBITDA guidance for 2025 has been suspended due to ongoing market volatility, competitive pressures, and rising costs.

• Management is monitoring market developments closely and may adjust pricing and cost measures as needed.

• Retained TV customers are expected to remain above 50% by end of 2025, with additional direct sales and hard disconnects planned.

• FTTH buildout expected to reach 60,000–70,000 homes by year-end, depending on market and housing association demand.