Strong performance in Mobile and B2B in the fourth quarter of 2018
Wallisellen, 27 February 2019
Record quarter for UPC’s Mobile segment in 2018, stable customer trends for TV and Internet
B2B continues to outperform the Swiss enterprise market with 9.2% revenue growth
Full-year revenue declined by 3.7%
Implementation of growth plan in full swing, aiming at structurally improving customer experience and product quality
UPC is investing heavily in its Happy Home offerings and Customer Service to further increase product quality and customer satisfaction. Overall, trends from the first three quarters continued into the fourth quarter, with a continued increase in the number of mobile subscribers. The revenue for the year 2018 declined by 3.7% compared to the previous year, to CHF 1,296 million, due to a highly competitive market environment and subscriber trends in previous quarters.
The Mobile segment showed continued growth, with its best quarter in 2018 (+9,000), bringing the customer base to 146,000 subscriptions. The performance of Mobile was supported by the right proposition with attractive plans both for Switzerland and for roaming in Europe, leading to a subscriber increase of over 6% in every quarter of 2018 and making UPC the fastest-growing mobile player on the Swiss post-paid market. In January 2019 the switch of UPC Mobile customers to the strongest mobile network in Switzerland was successfully completed. The switch was closely followed by a new mobile portfolio, which includes unlimited tariff plans with attractive rates for EU roaming.
The TV customer base registered a decline of 32,000 subscriptions in Q4 2018. This decline was mainly driven by seasonal effects on basic cable connections, as in previous years. At the same time, UPC saw a strong development of its Happy Home offerings, with UPC TV being successfully introduced in October 2018. By the end of 2018, already 44,000 customers were using the new UPC TV experience. Customers with the new UPC TV show a substantially higher satisfaction level compared to customers on legacy TV platforms.
In the Internet segment, customer numbers declined by 12,000 due to intensified competition. UPC solidified its speed leadership position, reaching an average Internet speed of more than 200 Mbit/s as a result of continuous speed increases on the base and in its portfolio. In 2018, UPC doubled the Internet speed at no extra cost for more than 300,000 existing customers. As of the end of 2018, UPC covers 80% of Switzerland with its deep-fibre high-speed infrastructure, providing the best wifi experience to its customers. The upgrade of its existing superior network towards Gigabit speeds is progressing and the Internet speeds will be continuously increased, hand in hand with the evolving demands of the customers. In the meantime, new Internet speeds of up to 600 Mbit/s were launched across the entire footprint in January 2019 and Happy Home customers with UPC TV were migrated to the newly-launched Internet speeds at no extra cost.
The Business customer division continued to outperform the Swiss enterprise market with a strong performance in Q4 2018 across all segments. The revenue for the year 2018 increased by 9.2%, thus further strengthening the B2B division’s strong role in the Swiss B2B sector with more than CHF 165 million in business for the SOHO, SME and Large Enterprise segments. UPC was able to acquire renowned customers for its customised solutions. At the same time, long-term cooperation was once again ensured with existing customers. These include Thurgauer Kantonalbank, Migros, BKW, Vaudoise, SV Group, Helsana, Swatch Group, and Mobilezone.
Furthermore, significant investments are being made in improvements to the customer journey and customer experience. The transformational program, designed to digitize and simplify the systems and processes leading to the digitization of sales channels and customer services both in the consumer and in the business segments, is in progress.
Photos may be reprinted free of charge
- Infographic Q4 2018
- UPC headquarters in Wallisellen, © UPC
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