Telecom company VodafoneZiggo lost customers in its division for fixed internet and television connections in the first quarter.
This is largely due to the loss of the broadcasting rights to Formula 1. Max Verstappen became world champion in the highest racing class last year and attracted a lot of viewers. They have partly switched now that Ziggo no longer broadcasts the matches.
Customer Loss
Without these effects, turnover was slightly lower than in previous quarters, says financial director Ritchy Drost. This loss of customers made little difference to VodafoneZiggo’s finances, because the company also lost less on making the F1 broadcasts and the rights.
‘Solid quarter’
In general, Drost speaks of a solid quarter. More mobile subscribers were added and the number of customers purchasing both fixed and mobile also increased. VodafoneZiggo also notices some competition there from fiber optic providers, but the extent to which people switch is lower than among customers who only purchase internet or mobile telephony.
Also read: Verstappen closes ‘exclusive’ deal with payment channel Viaplay
More expensive subscription
VodafoneZiggo also announced earlier that the prices for most fixed subscriptions would be increased by 2 euros per month as of 1 July. This is largely because VodafoneZiggo spends much more money on energy. “We have covered a large part of the risk, but we also see the costs rising,” explains Drost. “Still, I am happy that we can keep the cost increase limited. It has not become a percentage of 8 or 9 percent as inflation is now.”
VodafoneZiggo’s turnover remained stable at just over 1 billion euros. Operating profit rose slightly more than 2 percent compared to a year earlier to 480 million euros.