2degrees Achieves Revenue And Earnings Growth In Q3
- Service revenues reached a third straight quarterly high of NZ$148 million, an increase of 7% over Q3 2020.
- Growth in postpaid connections and postpaid service revenue continues, both up 8% year-on-year.
- Strong broadband connections growth of 13%, driving broadband service revenue growth of 15% year-on-year.
- Business division continues to accelerate with 25% growth in postpaid connections year-on-year.
- Adjusted EBITDA increased $1.3 million, or 3% year-on-year.
- 5G network to launch in Q1 2022.
(*all data at September 30, 3021 as compared to September 30, 2020 and is in NZ$, prepared in accordance with US GAAP.)
In results released by Trilogy International Partners Inc. (Trilogy) for the third quarter of the current year, 2degrees has continued to achieve growth amidst the pressures of COVID-19 lockdown and border closures in New Zealand.
The company achieved its third consecutive quarterly service revenue high, totalling NZ$148 million in Q3 2021, up 7% from NZ$138 million in Q3 2020. Service Revenue growth was primarily driven by growth in both the broadband subscriber base and ARPU, as well as continued growth in the postpaid subscriber base. More than 37% of 2degrees mobile customer base is now postpaid, compared to 34% a year ago, as the company continues to make progress in its long-term strategy of shifting its customer base to postpaid.
2degrees CEO Mark Aue said “Our third-quarter results show the continued success of our strategy, evident in our strengthened market position as both consumer and business customers increasingly choose 2degrees.
“We continue to achieve strong growth in the business sector, with 25% growth in connections year-on-year. We are proud to report continued growth in both total connections, and ARPU, despite pressures on our Consumer division due to retail closures and people being locked down at home.
“Our business has proven to be reactive and resilient, continuing to achieve growth amidst the ongoing challenges of COVID-19. Our 5G network is on track for launch in Q1 2022, with our first sites going live in Auckland CBD, followed by Wellington and Christchurch, bringing 5G to as many Kiwis as possible over time.
“We continue to implement our strategic initiatives to drive ongoing future growth for our business. I am extremely proud of our people who remain committed during these challenging times. We are all excited to be Fighting for Fair to make New Zealand a better place to live,” Mr Aue said.
In October 2021, 2degrees’ IPO preparations were paused in order for Trilogy International Partners to consider a potential merger of 2degrees and Orcon Group Limited (“Orcon Group”). Orcon Group, which operates a fixed broadband business in New Zealand, is owned by Vocus Group Limited, which was previously listed on the ASX and acquired by Macquarie Asset Management and Aware Super in July 2021. Any combination of 2degrees and Orcon Group would be subject to agreement on satisfactory terms between the parties, satisfaction of closing conditions, including required regulatory approvals, and there can be no assurance that such transaction will be entered into or completed.