Telenet raises outlook amid 2.3% higher revenues in Q4

Tuesday 13 February 2018 | 09:27 CET | News
Belgian operator Telenet said revenues for the fourth quarter rose 2.3 percent from the year earlier to EUR 644 million. The adjusted EBITDA advanced 6.9 percent to EUR 299 million while the net profit went up to EUR 7.5 million, from breakeven. As a result, Telenet lifted its adjusted EBITDA CAGR for 2015-2018, saying it now sees growth at 6-7 percent instead of 5-7 percent. For the full year, the operator is guiding for adjusted EBITDA growth of 7.8 percent, and capex at 26 percent of revenue, with free cash flow of EUR 400-420 million.

In the fourth quarter, capex slipped 6.7 percent to EUR 195 million. Adjusted free cash flow, as defined by Telenet, sank 63 percent to EUR 36.4 million for Q4, and lifted 44 percent for the full year to EUR 382 million.

Leverage target gets broadenedTelenet will be starting a new share buyback programme worth EUR 1.1-75 million towards the end of this year. The company said it will also consider other forms of shareholder remuneration over the course of the year. The company's leverage (net debt vs EBITDA ratio) stood at 3.9 in the quarter and, according to a new guideline, could go to 3.5-4.5.

Client base shrinks, bundling increases

In the quarter, Telenet lost 11,400 customer relationships, for a total of 2.19 million. At the same time, the number of services sold (RGUs) per customer increased from 2.28 to 2.29. ARPU also increased, to EUR 55.1 from 54.9. The number of single-play (1P) customers decreased slightly to 25.5 percent. The number of 2P customers was marginally lower at 20.4 percent. There was growth in the 3P base, to 54.1 from 53.7 percent. In the FMC (fixed/mobile convergence) segment, the WIGO proposition received 38,500 customers and now stands at 303,600.

Services: growth in business and postpaid 

Regarding individual services, customer numbers in the quarter were as follows:·

  • Basic cable (analogue TV only): lost 11,000 for total of 244,600;·
  • Enhanced video (digital TV): lost 4,600 to 1,787 million;·
  • Consumer internet: lost 1,500 to 1,512 million; 
  • Business internet: added 5,200 to 161,900; 
  • Consumer telephony: lost 3.100 to 1.197 million; 
  • Business telephony: added 3,200 to 105,400, and; 
  • Postpaid mobile: added 29,800 to 2,289 million

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