Tele Columbus (TC1) Q2 2025 earnings summary

Executive summary

• Achieved 9.5% year-over-year growth in internet customer base and 15.2% quarter-on-quarter revenue growth, maintaining position as Germany's fastest-growing internet operator.

• TV access RGUs remain above 200,000, but individual TV subscribers and premium TV RGUs continue to decline due to competitive pressures.

• Significant restructuring measures executed, including a reduction of approximately 300 FTEs, aiming for €25–30 million in annualized HR cost savings.

• Net loss widened significantly to €210.8 million from €85.2 million in the prior year, driven by higher interest expenses and negative financial results related to refinancing and embedded derivatives.

• The restructuring program initiated in late 2024 continued, with further provisions and headcount reductions.

Financial highlights

• Q2 2025 revenue reached €105.7 million, with normalized EBITDA at €84.9 million and reported EBITDA at €60.2 million, both down year-over-year due to TV migration impacts and restructuring expenses.

• H1 2025 revenue was €210.6 million (down 5.4% year-over-year), with reported EBITDA at €60.2 million (down 10.3% year-over-year) and operating cash flow at €50.1 million (down 38.4% year-over-year).

• CapEx (excluding leasing) decreased 25% year-over-year to €38.9 million, reflecting lower network and customer investments.

• Liquidity position at €73.3 million as of June 30, 2025.

• Net loss: €210.8 million (vs. €85.2 million loss in prior year).

Outlook and guidance

• Guidance reinstated: net sales for 2025 expected to be slightly down due to TV bulk migration, with strong internet and telephony growth not fully offsetting losses.

• Reported EBITDA is expected to see a slight increase from lower non-recurring expenses, with operational benefits expected from 2026.

• CapEx guidance unchanged, expecting a mid-double-digit million decrease, focusing on fiber infrastructure and customer growth.

• Further acceleration in broadband subscriber growth anticipated in H2 2025.