Com Hem reports third quarter results 2015

Third quarter summary

  · Revenue totalled SEK 1,255m (1,210), up 3.7 per cent, explained by healthy
growth in the consumer business.
  · Underlying EBITDA amounted to SEK 590m (576), up 2.6 per cent, driven by
revenue growth partially offset by revenue mix.
  · Operating free cash flow was SEK 372m (318), up 17 per cent. The increase
was due to higher EBITDA and lower capital expenditure during the quarter.
  · Net profit for the period was SEK 51m (7), mainly attributable to improved
EBITDA and net financial expense.
  · Earnings per share were SEK 0.25 (0.03), up SEK 0.22.
  · Our consumer growth continues steadily:
   -The number of unique consumer subscribers rose 9,000 to a total of 903,000.
   -Continued volume growth in broadband, up 11,000 to 648,000 RGUs.
   -Growth in digital TV remained stable, and rose 4,000 to 631,000 RGUs.
   -The number of TiVo customers rose slightly more than 9,000 to 213,000 (a
penetration rate of 34 per cent).
  · During the third quarter, Com Hem repurchased 3,800,911 shares,
corresponding to 1.8 per cent of the total number of registered shares, for SEK
278m (SEK 73.02 per share). During the period May to September, Com Hem
remunerated shareholders through a cash dividend, share redemption and share
repurchases totalling SEK 689m, representing 4.9 per cent of our market
capitalisation at 30 September.
  · Tobias Lennér appointed Head of our B2B business and CEO of Phonera.

Comment from Anders Nilsson, CEO, Com Hem
I summarise this quarter as a solid one in which the business delivered
successfully on our long-term plan, while investing in the pillars of our future
growth. We continue to grow subscribers steadily, as we continue our shift from
volume to price and volume-led growth. We grew our consumer base by 9,000 to
903,000 customers, with an additional 11,000 broadband subscribers and 4,000
digital TV subscribers. Our TiVo penetration rate is 34 per cent of our TV
customer base, adding 10,000 customers to a total of 213,000 – a remarkable
achievement since our launch two years ago.

Our strong focus on operational improvement continues to yield real benefits. We
achieved a record-low consumer churn rate of 12.9 per cent, compared with 13.7
per cent in the second quarter and 14.8 per cent in third quarter 2014,
benefiting from falling churn on all consumer services. This represents a
particularly rapid recovery from the price rise activity in Q2.
Q3 was also a quarter of significant progress in improving the quality of our TV
and broadband services.

  · We continue to invest in our broadband leadership strategy, emphasising the
superior quality that our unique cable network offers – both on fixed speeds and
wi-fi. Thanks to this investment, we continue to lead our competitors in the
Netflix speed index month after month.
  · Our new TV Everywhere service – branded Com Hem Play – was launched in mid
-September exclusively to our TiVo customers, replacing our previous TiVoToGo
service. It offers significantly improved interface and navigation than the
previous version. Reach of Com Hem Play rose 58 per cent compared to TiVoToGo,
while total streaming volume up by over 200 per cent compared with the month
preceding launch.
  · We have renewed our partnerships with TV4 and Netflix during the quarter,
giving us the opportunity to continue to strengthen our entertainment offer to
our TV and broadband customers.

Notes to the editors:
You find the complete report with tables in the attached PDF or at:
http://www.comhemgroup.se/interimreport-q3-2015/

Conference Call on November 3
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.

Please use the following dial-in numbers to participate:
Sweden: +46 8 5052 0110
UK: +44 20 7162 0077
USA: +1 334 323 6201

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

For queries, please contact:

Investors:
Petra von Rohr, Director IR & Corporate Communications
Tel: +46(0)734 39 06 54

Caroline Tivéus, IR-Manager
Tel: +46(0)734 39 08 67
Investor.relations@comhem.com

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

Com Hem Holding AB discloses the information provided herein pursuant to the
Swedish Securities Markets Act (2007:528) and/or the Swedish Financial
Instruments Trading Act (1991:980). The information was submitted for
publication at 07.30 CET on November 3, 2015.

About Com Hem

Com Hem is one of Sweden’s leading suppliers of high-speed broadband, television
and fixed-telephony. Approximately 40% of Sweden’s households are connected to
Com Hem’s network, with access to the market’s broadest range of television
services. Com Hem offers broadband speeds up to 500 Mbps to 1.9 million
households which is more than any other operator. Since 2013 Com Hem has a
competitive B2B-offer of broadband and telephony services. Com Hem was founded
in 1983, has approximately 1,200 employees and its head office is in Stockholm.
Operations are run through three subsidiaries; Com Hem AB, Phonera Företag AB
and iTUX Communication AB. Com Hem’s shares are listed on Nasdaq Stockholm. For
more information, visit: www.comhemgroup.com.