Cogas loses TV customers, fibre roll-out gathers pace

Thursday 5 June 2014 | 16:53 CET | Background

Cogas saw its revenues for 2013 decrease by EUR 10.1 million to EUR 59.7 million, according to its recently published annual report. The decrease was partly caused by the loss of revenues from the cable activities that were moved into a joint venture with Dutch fibre network operator CIF at the end of 2012. At the same time, revenues from commercial activities increased as Cogas provided services to the aforementioned joint venture, Cogas Kabel Infra. Cogas is an energy supplier in the Twente region with twelve municipalities as its shareholders. These municipalities include Almelo, Hof van Twente, Hardenberg, Oldenzaal and Twenterand.

Drop in TV customer base accelerates

The annual report includes the number of customers that use the Cogas Kabel Infra network for TV. These decreased by almost 2,300 or 3.2 percent during 2013 to 68,384 at the end of December.

The drop in TV customers in 2013 was higher than in the preceding years. In 2010, the decrease was limited to less than 1,000 customers or 1.2 percent, and this accelerated during 2011 and 2012 to slightly more than 1,200 customers and 1,300 customers respectively. This is the equivalent of decreases of 1.7 percent in 2011 and 1.8 percent in 2012.

Fibre roll-out goes well

The 50-50 joint venture between Cogas and CIF, Cogas Kabel Infra is responsible for the coax/fibre network in the twelve shareholder municipalities. After closing the agreement with CIF in December 2012, Cogas Kabel started to roll out fibre alongside the existing coax connections. During 2013, around 20,000 households were connected with fibre. In 2014 another 44,000 households will be added to the fibre network. The twelve municipalities in Cogas Kabel’s coverage area include around 130,000 households. The joint venture will also handle preparation for the deployment of fibre in rural areas. 

Services provider sold to CAIW

Cogas and CIF each sold their 50 percent stake in Cogas Kabeltelevisie BV to CIF’s service provider subsidiary CAIW in November 2013, according to the annual report. Cogas Kabeltelevisie BV is responsible for providing analogue and digital cable TV services on the Cogas Kabel network. The sale was already announced by CAIW in its annual report for 2012. The transaction had a positive impact on the net profit of Cogas, which was higher then expected at EUR 23.5 million for 2013. Of the net profit, EUR 10.2 million will be go to Cogas’s shareholders as a dividend.

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