2016 COM HEM REPORTS SECOND QUARTER RESULTS 2016

Second quarter summary

  · Revenue totalled SEK 1,300m (1,246 in Q2 2015), up 4.3%.
  · Operating profit (EBIT) increased by 5.5% to SEK 192m (182).
  · Underlying EBITDA increased by 4.1% to SEK 607m (583).
  · Operating free cash flow increased by 23.0% reaching SEK 409m (333) as a
result of improved Underlying EBITDA and lower investments compared to Q2 last
year.
  · Net result for the period almost doubled and amounted to SEK 82m (42).
  · Earnings per share increased to SEK 0.43 (0.20).
  · Number of unique consumer subscribers rose by 6,000 to record high 926,000.
  · Consumer churn rate of 13.1%, 0.8p.p. decrease from Q1 2016.
  · Record high consumer ARPU of 369 SEK.
  · Continued strong volume growth in broadband, up 10,000 to 679,000 RGUs.
  · Digital-TV RGU’s totalled 636,000, with a continued growth of 4,000 TiVo
customers (penetration rate of 37%).
  · B2B continued to grow with 1,000 unique OnNet customers to a total of
18,000.
  · Expansion into the Swedish SDU market and acquisition of Boxer Sweden
communicated in June as next major growth driver.
Comment from Anders Nilsson, CEO, Com Hem
Customer satisfaction remains our main operational  focus which in this quarter
led to an increased consumer  customer base growing by 6,000 and a continued
 strong broadband growth of 10,000 RGUs.  DTV subscribers increased by 1,000 in
the quarter, and our TiVo base grew by 4,000 customers reaching 37% of our total
DTV base. The number of telephony subscribers dropped by 14,000 following price
adjustments.

Consumer churn decreased by 0.8 p.p. compared to Q1 and was 13.1% in the
quarter, now only 0.2 p.p. higher than the record low churn of 12.9% we recorded
for both Q3 and Q4 2015. We expect the churn rate to continue trending downward
somewhat over time as we improve customer satisfaction.

As expected, the implementation of this year’s price adjustments was well
received and drove a SEK 6 uptick in consumer ARPU (average monthly revenue per
user) to SEK 369 in the quarter. In total, over half of our customers were
affected by the price adjustments which on average were somewhat larger than
2015. We continued to focus on the elimination of discounts, rather than raising
front book prices, and left the prices of our most popular broadband and TiVo
services unchanged.

Demand for our high speed broadband continued to be strong in the quarter, with
more than 80% of new broadband subscribers choosing speeds of 100 Mbit/s and
above. This brought average speeds in the base up to 129 Mbit/s, compared to 104
Mbit/s a year ago.

Com Hem’s fibreCoax infrastructure continues to deliver the fastest average
download speed amongst our peers according to external tests by Bredbandskollen,
Netflix Speed Index and Google Video Index.

During the quarter we have also past the milestone of 2 million connected
households, by adding almost 60,000 new households during the quarter and
compared to last year, we have increased our footprint with 6%, or 115,000
households.

Within B2B our focus remains on growing the high-margin OnNet business, while we
see a structural decline in the OffNet legacy fixed telco business. During the
quarter we added 1,000 new OnNet B2B customers, and compared to last year the
OnNet B2B customer base have grown with over 40%.

Following successful trials, we did in June decide to expand into the single
dwelling unit (“SDU”) market in Sweden and we expect to be able to reach
additional 800,000 SDUs via fibre (homes passed) over the coming years. Our
ambition is to make the SDU market the next major growth pillar for Com Hem
turning the company into a true national operator in broadband- and TV-services.

To boost this expansion Com Hem has entered into an agreement to acquire the
Swedish digital terrestrial pay television operator Boxer TV-Access AB. The
acquisition of Boxer is a significant opportunity for Com Hem and is expected to
generate approximately SEK 300m in additional Underlying EBITDA and an annual
operating free cash flow of approximately SEK 200m to the Com Hem Group. Boxer’s
approximately 500,000 DTV customer base is primarily situated in the SDU market,
and will to a large extent be passed by fibre over the coming years.

We are working to obtain all necessary approvals for the Boxer transaction which
is expected to close in the second half of 2016. We have already started
planning the process of integration and we are confident that Boxer will be a
great fit for the Com Hem portfolio.

We are very happy with our progress so far in 2016 including our new focus on
the SDU market, the acquisition of Boxer, and the rebranding campaign. We firmly
believe that these initiatives will lay the foundation for further success in
the second half of 2016 and beyond.

Notes to the editors:
You will find the complete report with tables in the attached PDF or at:
http://www.comhemgroup.se/en/investors/financial-reports-presentations/

Conference call on July 12
Management will host a conference call for the financial community at 10:00 am
CET today. The presentation will be held in English and the presentation
material can be accessed on www.comhemgroup.com. An on-demand version is also
available after the presentation.

Link to webcast: http://cloud.magneetto.com/comhem/2016_0711_q2/view

Conference call dial-in numbers:

Sweden: +46 (0)8 5052 0110
UK: +44 (0)20 7162 0077
USA: +1 646 851 2407

To ensure that you are connected to the conference call, please dial in 10
minutes ahead of the conference call to register your attendance.

Other information
Com Hem Holding AB’s subsidiary NorCell Sweden Holding 2 AB (publ) is the
reporting entity of the Senior Secured Notes. NorCell Sweden Holding 2 AB’s
(publ) second quarter results 2016 is as of today available on
http://www.comhemgroup.se/en/investors/financial-reports-presentations/

For queries, please contact:
Investors
Petra von Rohr, Director IR & Corporate Communications
Tel: +46(0)734 39 06 54
petra.vonrohr@comhem.com

Media
Fredrik Hallstan, Head of PR
Tel: +46(0)761 15 38 30
press@comhem.com

This information is information that Com Hem Holding AB (publ) is obliged to
make public pursuant to the EU Market Abuse Regulation and the Securities
Markets Act. The information was submitted for publication, through the agency
of the contact persons set out above, at 07:30 CET on July 12, 2016.

About Com Hem
Com Hem offers broadband, TV, play and telephony services to Swedish households
and companies. Approximately 40 percent of the country's households are
connected to Com Hem's network, making Com Hem an important driver of digital
Sweden. We offer broadband speeds of up to 1 Gbit /s and a wide range of
channels via digital TV at home or mobile via Com Hem Play. The company was
founded in 1983 and has approximately 1,200 employees including about 700 within
customer service. Com Hem is headquartered in Stockholm and operates through
three subsidiaries; Com Hem AB, Phonera Företag AB and iTUX Communication AB. In
2015, Group sales totaled SEK 5,000 million. Since 2014 the Com Hem share is
listed on Nasdaq Stockholm. www.comhemgroup.se.