Tele Columbus (TC1) Q4 2024 earnings summary

Executive summary

• Achieved strong internet and telephony growth, with internet subscriber base up 12.3% year-over-year and revenue rising 18.5% in Q4 2024, maintaining status as the fastest-growing internet operator in Germany.

• TV customer base declined sharply due to regulatory-driven bulk migrations, with a 38.7% loss in TV RGUs and retention at 48% by year-end.

• Completed NetCo/ServCo separation, enabling operational excellence, simplified structure, and future strategic optionality.

• Major refinancing in 2024 included a new EUR 300 million shareholder loan and extension of senior facilities and bonds, supporting liquidity and future equity conversion.

• The group closed 2024 with a net loss of KEUR 214,316, driven by lower TV revenues, higher interest expenses, and restructuring costs.

Financial highlights

• 2024 revenue was EUR 426.3 million, with internet and telephony accounting for over 50% of revenue; TV revenue fell by KEUR 44,562.

• Reported EBITDA declined 3% year-over-year to EUR 138.5 million, mainly due to non-recurring items from A&E transaction, TV migration, and transformation costs.

• CapEx (excluding leasing) increased by 18% to EUR 216 million, focused on fiber optic expansion and network upgrades.

• Cash position at year-end was EUR 57.8 million, with an undrawn shareholder loan of EUR 85 million.

• Net loss widened to KEUR 214,316, mainly due to higher interest expenses and restructuring.

Outlook and guidance

• 2025 revenues expected to remain stable as internet and telephony growth offsets TV losses; reported EBITDA projected to grow by a low double-digit million amount due to reduced non-recurring expenses.

• CapEx for 2025 projected to decline significantly (mid-double-digit million range lower than 2024), with continued focus on fiber infrastructure.

• Stronger growth mode expected in 2026 as TV migration impact is fully annualized and IP growth drives top and bottom line.