First Quarter 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.

• Accelerated uptake of our fixed-mobile converged "WIGO" and "YUGO" bundles in Q1 (+29,400) to just over 429,000 subscribers at March 31, 2019, representing our best result since Q1 2018.
• Improved operational performance in Q1 2019, including 33,600 net mobile postpaid subscribers, driven by our revamped offers and the declining impact from the SFR customer migration.
• A 16% yoy decrease in our accrued capital expenditures (excluding the recognition of football broadcasting rights) drove a robust 25% increase in our Operating Free Cash Flow to €188.9 million.

Brussels, May 2, 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 three months ended March 31, 2019.

HIGHLIGHTS

• Improved operational performance in Q1 2019, including a robust uptake of our fixed-mobile converged ("FMC") bundles and an accelerating net mobile postpaid subscriber trend, driven by our revamped product portfolio and attractive fixed-term promotions, partially offsetting higher churn in the acquired SFR footprint in Brussels as part of the customer migration strategy, which has been fully completed at the end of Q1 2019.
• Accelerated net mobile postpaid subscriber growth in Q1 2019 (+33,600) driven by the aforementioned FMC uptake and the launch of unlimited mobile data plans under both our Telenet and BASE brands.
• Q1 2019 revenue of €626.4 million, +1% yoy and reflecting a full quarter contribution from Nextel. On a rebased(1) basis, our top line remained broadly stable with a 1% decrease mainly as a result of lower interconnection revenue following a regulatory decrease of fixed termination rates and a mobile wholesale partner's transition from light to full MVNO. Our cable subscription revenue was up 1% yoy due to the favorable impact of the July 2018 price adjustments and continued growth in the small business segment.
• Net profit of €14.7 million for Q1 2019, driven by the net effect of (i) the increase in Adjusted EBITDA(2), (ii) a €53.5 million non-cash foreign exchange loss on our USD-denominated debt and (iii) a €3.8 million non-cash gain on our derivatives.
• Adjusted EBITDA of €320.3 million for Q1 2019, +4% yoy on a reported basis, including the aforementioned inorganic impact and the application of IFRS 16 as of January 1, 2019. On a rebased basis, our Adjusted EBITDA was broadly flat yoy. Lower direct costs and lower staff-related expenses were almost fully offset by higher sales and marketing expenses to fuel our new product propositions and higher costs related to outsourced labor and professional services following the transfer of our network field services operations to a joint venture. On a rebased basis, we succeeded in expanding our Adjusted EBITDA margin by 40 basis points yoy to 51.1%.
• Accrued capital expenditures(3) of €172.7 million for Q1 2019, +10% yoy as Q1 2019 reflected the recognition of the UK Premier League broadcasting rights for the upcoming three seasons. Excluding this impact, our underlying accrued capital expenditures decreased 16% yoy and were around 21% of revenue in the quarter.
• The substantial decline in our accrued capital expenditures (excluding the recognition of football broadcasting rights) drove a 25% yoy increase in our Operating Free Cash Flow(4) to €188.9 million.
• Net cash from operating activities, net cash used in investing activities and net cash used in financing activities of €165.5 million, €102.3 million and €104.2 million, respectively, for Q1 2019. Adjusted Free Cash Flow(5) of €19.8 million for Q1 2019, reflecting seasonal patterns in our cash flow due to annual cash tax and semi-annual cash interest payments.
• FY 2019 outlook reconfirmed following a good start in Q1 2019. Due to the loss of the MEDIALAAN MVNO contract and certain regulatory headwinds, we expect a more outspoken impact on both our rebased revenue and Adjusted EBITDA as of Q2 2019, in line with our FY 2019 outlook as presented mid-February.
• Committed to deliver a 6.5-8.0% rebased Operating Free Cash Flow CAGR(a) over the 2018- 2021 period, with top line and Adjusted EBITDA declines in 2019 resulting from certain challenges and headwinds.