Tele Columbus - comment

TC will need to start adding premium TV and Fibre customers quickly over the next few quarters to stay on track, but so far the revenue fall is relatively modest. The loss of Bulk RGUs is behind the - 2.3% and - 3.5%  fall in Revenue EBITDA respectively. Tele Columbus (TC) is slowly replacing bulk contracts with individual deals (hence the rise in telephone and TV contracts in the quarter). Management began switching off clients in Q3 (after the Euros and the Olympics), and TC has had success in getting individuals to take telephony and TV contracts in replacement. We will update our model after this morning’s call.