First Half 2012 Results Telenet

Telenet Group Holding NV ("Telenet" or the "Company") (Euronext Brussels: TNET) announces its unaudited consolidated results under International Financial Reporting Standards as adopted by the European Union ("EU GAAP") for the six months ended June 30, 2012.

HIGHLIGHTS

• Revenue of €727.0 million, up 9% yoy, driven by more multiple-play, digital TV and mobile RGUs. Q2 2012 revenue up 7% yoy, reflecting lower stand-alone handset sales due to iPhone 4S inventory shortages. Excluding low-margin revenue from hardware sales, revenue grew 8% yoy in H1 2012 and 7% yoy in Q2 2012;
• Accelerated digitalization fueled by our digital TV migration campaign, contributing to 116,700 net additions to digital TV in H1 2012 (Q2 2012: +71,300);
• Continued improvement in mobile thanks to the success of our new SIM-only rate plans. Our addition of 17,600 net new mobile postpaid subscribers in Q2 2012 was our best performance in two years' time;
• Triple-play customers grew 9% yoy to 818,700 at June 30, 2012; now representing 38% of our customer base;
• Adjusted EBITDA⁽¹⁾ of €387.0 million, up 9% yoy, resulting in an underlying margin of 53.2%. Excluding non-recurring elements, our Adjusted EBITDA grew 8% yoy;
• Net profit fell 57% yoy to €25.0 million as a result of a €38.0 million unrealized loss on derivative financial instruments, higher interest expenses and amortization charges linked to Belgian football broadcasting rights;
• Accrued capital expenditures⁽²⁾ totaled €167.3 million, or 23% of revenue, driven by higher set-top box and success-based capital expenditures in line with the accelerated uptake of digital TV;
• Free Cash Flow⁽³⁾ decreased 15% yoy to €117.4 million reflecting higher cash interest expenses and the final cash payment for the Belgian football broadcasting rights for the 2011/12 season;
• Stable net leverage ratio⁽⁶⁾ of 3.1x at June 30, 2012 despite €113.4 million dividend payment in the course of Q2 2012 and continued share repurchases, reflecting the strong underlying cash generation of our business.
  
  
  Cfr. Press Release