First Nine Months 2019 Results

The enclosed information constitutes regulated information as defined in the Royal Decree of 14 November 2007 regarding the duties of issuers of financial instruments which have been admitted for trading on a regulated market.

• Robust net uptake of our fixed-mobile converged "WIGO" and "YUGO" bundles in Q3 (+40,400), up 4% versus Q2 despite seasonality and our best result since Q3 2017.
• Tightening our rebased top line FY 2019 outlook, now targeting a decrease of around 2% versus around 2.5% initially. All other financial metrics unchanged for the full year.
• Delivering on our shareholder remuneration timeline: (i) a gross intermediate dividend of €63.2 million (€0.57 per share) and (ii) the cancellation of 1,178,498 treasury shares.

Brussels, October 31, 2019 – 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, 2019.

HIGHLIGHTS

• Continued strong growth in our FMC customer base to 508,200 customers at the Q3 2019 quarterend, up 35% yoy and representing around 24% of our total customer relationships. On the fixed side, we noted a seasonally softer performance on broadband, video and fixed telephony relative to Q2.
• Another strong quarter of net postpaid subscriber growth in Q3 (+42,800), primarily driven by continued FMC growth and product enhancements done in H1 2019.
• A higher share of multiple-play subscribers, including an increase in higher-tier broadband customers, drove a healthy 4% yoy growth in the ARPU per customer relationship to €57.4 for 9M 2019.
• 9M 2019 revenue of €1,910.6 million, up 1% yoy and reflecting the inorganic impact from both the Nextel and the De Vijver Media acquisitions. On a rebased(1) basis, our top line contracted by -1.4% as broadly stable cable subscription revenue was more than offset by (i) lower wholesale revenue from the loss of the MEDIALAAN MVNO contract, (ii) lower interconnect revenue due to lower fixed termination rates and declining SMS volumes and (iii) lower mobile telephony revenue reflecting lower usage-related revenue. Q3 2019 revenue of €649.0 million, +1% yoy on a reported basis and -2% yoy on a rebased basis due to the full quarter impact of the aforementioned MVNO contract loss.
• Net profit of €142.9 million for 9M 2019 (Q3 2019: €86.9 million), being a 30% decrease yoy driven by higher net finance expenses in the period, offsetting a robust 8% yoy increase in our operating profit.
• Adjusted EBITDA of €1,024.5 million for 9M 2019, +3% yoy on a reported basis, including the Nextel and De Vijver Media acquisition impacts and the application of IFRS 16 as of January 1, 2019. On a rebased basis, our Adjusted EBITDA for 9M 2019 modestly contracted by 1% yoy. Q3 2019 Adjusted EBITDA of €359.7 million, a 1% decrease yoy on a rebased basis, which marked an improvement versus the -2% we showed in Q2. We succeeded in expanding our underlying Adjusted EBITDA by 150 basis points compared to last year on a rebased basis to 55.4%.
• Accrued capital expenditures(3) of €428.2 million for 9M 2019, including the recognition of the UK Premier League broadcasting rights for the upcoming three seasons. Excluding this impact, our accrued capital expenditures represented 21% of revenue in the period.
• Lower accrued capital expenditures and solid Adjusted EBITDA growth drove a robust 16% increase in Operating Free Cash Flow(4) to €627.3 million for 9M 2019.
• Net cash from operating activities, net cash used in investing activities and net cash used in financing activities of €754.0 million, €304.5 million and €455.3 million, respectively, for 9M 2019. Adjusted Free Cash Flow(5) of €270.1 million for 9M 2019 (Q3 2019: €63.4 million), -19% compared to the same period last year, which included a €40.6 million higher contribution from our vendor financing program.
• Committed to deliver a 6.5-8.0% rebased Operating Free Cash Flow CAGR(a) over the 2018- 2021period, with top line and Adjusted EBITDA declines in 2019 resulting from certain challenges and headwinds.
• Following the return to the mid-point of our framework for the net total leverage ratio on 30 September 2019, the board of directors approved the payment of a gross interim dividend of € 63.2 million or € 0.57 per share, which, subject to approval by the shareholders, will be paid out in early December. In addition, together with the publication of our results for the 2019 financial year, the board will decide in February of next year on the final dividend that will be paid in May of next year, subject to approval by the General Shareholders’ Meeting.