Tele Columbus - comment

Having completed its restructuring transaction, Tele Columbus (TC) can now focus on its fibre roll-out. We are still sceptical about whether TC will get enough new customers to justify the €2bn in Capex it intends to spend over the next decade (€1.5bn over the next five years). TC needs to deliver homes to marketing steadily over the coming quarters and show that penetration is growing. However, management has provided little detail so far.  We have updated our model for the extended bond maturity, and the cash balance is now pro forma for the equity injection.