First Nine Months 2014 Results
- Continued traction for our leading triple-play bundles ("Whop" and "Whoppa"), resulting in more than 1 million triple-play subscribers at September 30, 2014 (+11% yoy);
- Sustained focus on providing a great customer experience and continuous product enhancements drove annualized churn across all fixed services to their lowest level for a third quarter since 2009;
- Full year outlook reconfirmed, having achieved revenue and Adjusted EBITDA growth of 4% and 8%.
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 IFRS") for the nine months ended September 30, 2014.
HIGHLIGHTS
- Robust operational results in Q3 2014 with 83,400 net subscriber additions to our advanced fixed services of digital TV, broadband internet and fixed telephony, up 66% sequentially despite a competitive environment;
- ARPU per customer relationship reached 50.0 in Q3 2014, up 5% yoy, driven by a higher share of both triple-play and digital TV subscribers in our overall mix, partly offset by a higher share of bundle discounts;
- Further improvement in net mobile subscriber additions (+47,700 in Q3 2014) as a result of our improved product line-up, including "King Supersize", 4G access and targeted handset subsidies;
- Revenue of 1,271.1 million for 9M 2014, up 4% yoy, impacted by substantially lower revenue from the sale of standalone handsets, lower analog carriage fees and lower usage-related revenue. Improving revenue growth to 5% yoy in Q3 2014, resulting in 432.3 million of revenue;
- Adjusted EBITDA(1) of 687.4 million for 9M 2014, up 8% yoy, and including a nonrecurring 12.5 million benefit from the settlement of certain operational contingencies. Adjusted EBITDA of 227.3 million in Q3 2014, up 4% yoy, reflecting higher network operating and service costs, including targeted handset subsidies;
- Accrued capital expenditures(2) of 260.0 million for 9M 2014, representing 20% of revenue. Excluding the renewal of the Belgian football broadcasting rights, accrued capital expenditures reached 18% of revenue;
- Free Cash Flow(3) more than doubled to 209.3 million for 9M 2014 as a result of solid Adjusted EBITDA growth, an improvement in our working capital and lower cash capital expenditures.
