Published: August 23, 2010 09.43 Europe/London
UPC saw its revenues in Romania grow earlier this year and remains optimistic about the future despite challenging market conditions.
Quoting a report published by Liberty Global, ZF says that UPC Romania’s revenues in Q2 amounted to €30.8 million, or 1.32% more than a year earlier. Its half-year revenues meanwhile rose by 2.3% year-on-year to €62.3 million.
The report speaks about subscriber losses, which it attributes to strong competition from RCS/RDS and Romtelecom.
UPC Romania’s revenue increases are likely to be down to changes in its subscriber base, with a growing number opting for additional services such as HD channels and DVRs. Typically, such customers provide four times as much in revenues as those receiving just analogue cable services.
Significantly, the report raises concerns about the large number of cable TV contracts that will expire in June 2011 and a prospective law that could allow subscribers to terminate contracts early without incurring penalties