Canal Digital decline weighs on Telenor Broadcast performance

Telenor’s Fornebu HQ

A strong performance by Telenor Satellite and stable numbers from digital-terrestrial transmission unit Norkring could not compensate Telenor Broadcast for an accelerating rate of loss of pay TV outfit Canal Digital’s subscribers in the fourth quarter, according to the Nordic telco.

Canal Digital lost 13,000 customers in the quarter to December, over double the 6,000 lost in the same period in 2017.

Price increases implemented by the operator failed to offset the impact of the reduced customer base, which lost 45,000 subscribers over the course of the year. Canal Digital turned in revenues of NOK1.087 billion (€112 million) for the quarter, down from NOK1.152 billion for the same period in the prior year. For the full year, Canal Digital posted sales of NOK4.793 billion, down from NOK4.557 billion, and an operating profit of NOK118 million, down from NOK179 million.

Telenor Broadcast’s revenues for Q4 and the full year dropped as a result, with Q4 revenues dropping from NOK1.516 billion to NOK1.455 billion. Operating profit for the quarter dropped from NOK282 million to NOK252 million.

The losses at Canal Digital were partly offset by a relatively strong performance from Telenor Satellite, which saw satellite capacity sales increase.