Telenet drops dividend

News General Belgium 25 SEP 2014
Telenet drops dividend
Belgian cable operator Telenet announced it has decided not to propose any dividend, due to the "current operating environment". The company said it remains committed to shareholder returns in line with its long-term net debt to EBITDA target. The announcement follows a downgrade in the operator's annual outlook at its interim report in July. 

Telenet cut the sales growth outlook to 4-5 percent, compared to 6-7 percent previously, due mainly to a slowdown in the mobile market, while maintaining its forecast for adjusted EBITDA up 5-6 percent. The company also recently announced a major investment programme to upgrade speeds on its network as well as significant investments in content, amid the arrival of Netflix on the Belgian market. 

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