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Canal Digital grows revenues and profit but loses more subs

Norwegian telco Telenor’s pay TV unit Canal Digital turned in increased revenues and profits for the first quarter of the year, although the outfit continued to lose subscribers.

Telenor’s Fornebu HQ

Canal Digital posted revenues of NOK1.134 billion (€118 million) for the quarter, up from NOK1.099 billion for the same period in 2017. Canal Digital’s EBITDA increased from NOK173 million to NOK231 million, while operating profit increased from NOK151 million to NOK211 million.

The quarter saw Canal Digital introduce its new Android TV box, OnePlace, which it previously said had attracted “vast” interest.

Telenor Broadcast as a whole turned in flat year-on-year revenues, with the growth at Canal Digital being offset by the shutdown of FM broadcasting in Norway and a change to a lease of a satellite transponder. Telenor Satellite revenues were down from NOK152 million to NOK135 million, while terrestrial transmission outfit Norkring’s revenues dipped from NOK141 million to NOK140 million.

Telenor said that EBITDA growth at Broadcast – up 9% to NOK504 million – was boosted by a lower hardware costs at Canal Digital and reduced operating expenditure driven by lower sales and customer service costs.

Elsewhere in Telenor’s businesses, Norwegian fixed-line TV subscriptions fell by 2,000 to 546,000, with fixed internet and phone subscriptions also falling. Swedish TV subscriptions rose by 5,000 to 470,000.

Telenor overall posted revenues of NOK27.1 billion, up 1.5%, and EBITDA grew by 10% to NOK11.3 billion.