First Nine Months 2011 Results
- Accelerated organic top line growth in Q3 2011, fueled by strong inflow of triple-play;
- Adjusted EBITDA margin continued to expand to 53.3% for 9M 2011 and 54.1% for Q3 2011;
- Increasing uptake of triple-play subscribers, up 10% yoy to 35% of customer base.
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 nine months ended September 30, 2011.
HIGHLIGHTS
n Revenue of 1,014.8 million, up 5% yoy, driven by triple-play and business services growth, notwithstanding the impact from the reporting change on certain premium voice and SMS content services;
n Growth in ARPU per customer relationship(4) (5) accelerated in Q3 2011, reaching 42.5 (+9% yoy), resulting in improved organic revenue growth qoq of 5.0% in Q3 2011 from 4.6% in Q2 and 4.2% in Q1;
n Adjusted EBITDA(1) up 7% yoy to 540.8 million, margin expanded to 53.3% despite investments in growth and football-related production and marketing costs, driven by cost efficiencies and customer bundling;
n Net profit fell 76% yoy to 11.2 million, amongst others negatively impacted by a 28.5 million impairment on DTT-related infrastructure and a 47.9 million loss on derivatives;
n Accrued capital expenditures(2) increased to 362.3 million, impacted by the acquisition of certain exclusive Belgian football broadcasting rights and the fourth 3G mobile spectrum license. Excluding these items, accrued capital expenditures amounted to 20% of revenue;
n Free Cash Flow(3) of 170.0 million, down 18% yoy, reflecting higher cash interest expenses and the prepayment of part of the acquired exclusive Belgian football broadcasting rights;
n Around 172,000 customers subscribed to our sports channel Sporting Telenet, up 46% yoy;
n Healthy financial profile through significantly extended debt maturity profile and strong cash generation;
n Full year 2011 outlook narrowed on the back of softer results in Q2 and beginning of Q3, expecting revenue growth of around 5.5%. Adjusted EBITDA margin upgraded to around 52.5%.
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