German cable operator Unitymedia had 1.27 million digital cable subscribers at the end of June, up 23% year-on-year. However, its analogue subscriber base lost 392,000 subscribers during the 12 months meaning its overall cable subscriber base was down 3% on the previous year.
The operator has been concentrating on developing its Unity3play triple-play offering which it said was now available across 88% of its network. New services RGUs, comprising broadband, telephony and digital TV offerings, increased by 44% year on year to 1.76 million at the end of the quarter, including 496,000 broadband subs (up 76% year-on-year) and 490,000 telephony subs (up 87% year-on-year). Digital pay-TV RGUs were down 9% to 469,000 however, due to churn relating to Unitymedia stopping broadcasting Bundelsiga football matches. The operator said the majority of churn had already occurred but more was expected during the second half of the year.
Unitymedia said 28% of its cable subscriber base now takes digital services. As the operator continues its strategy to upsell premium content to its digital base with plans to convert 10 ARPU customers to Â40 and higher, it reported blended monthly ARPU across all cable products of Â14.29 for the second quarter, up 15% from Â12.47 a year earlier.
Unitymedia reported revenues of Â230.9m, up 11% year-on-year. Revenue from basic cable services was Â138.8m and Â16.3m came from digital pay-TV services. EBITDA grew 13% to Â110.8m during the 12 months to the end of June.
Responding to press reports that Unitymedia is preparing an IPO that could net the operator up to Â1bn, CEO Parm Sandhu said that while the market environment for an IPO had improved, the valuation of cable companies are at an all-time low and a public listing would not be attractive for holders.Â