Full Year 2016 Results

  • Robust uptake of our attractive and innovative quad-play offering "WIGO" since its launch at the end of June 2016 with just over 150,000 subscribers already achieved at the end of Q4 2016.
  • Delivering on our 2016 outlook driven by a solid operational and financial performance across substantially of all our product lines.
  • The execution of our Vision 2020 will enable us to achieve profitable financial growth in 2017 and beyond, targeting a 5-7% Adjusted EBITDA(a) CAGR over the 2015-2018 period.

 

 

– 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 the year ended December 31, 2016.

HIGHLIGHTS

n Successful launch of our first all-in-one converged offering "WIGO" in late June 2016, resulting in just over 150,000 "WIGO" subscribers at December 31, 2016, boosting quad-play penetration to 23% of cable customers.

n BASE integration well under way with just over 500 macro sites upgraded to the latest technologies and close to 38,000 MVNO customers migrated to our own acquired network by the end of January 2017, keeping us on track to reach €220.0 million of synergies targeted by 2020.

n In mobile, we recorded solid net postpaid subscriber growth in Q4 2016 (+33,100) to just over 2.1 million postpaid subscribers. Our net postpaid result was driven by continued traction of our "WIGO" offering, partially offset by declines at BASE and intense competition.

n Revenue(2) of €2,429.1 million in 2016, +33% yoy on a reported basis. For the full year 2016, we achieved 3% rebased revenue growth with solid mid-single-digit top line growth for our cable business being partially offset by continued competitive and regulatory pressures on our acquired mobile business. Revenue of €629.2 million in Q4 2016, +36% yoy on a reported basis and +2% yoy on a rebased basis.

n Net income of €41.6 million in 2016 compared to €175.7 million in 2015, a decrease of 76%. Net income for the full year 2016 was impacted by (i) the increase in Adjusted EBITDA, as discussed below, (ii) a €45.7 million loss on extinguishment of debt due to certain refinancings and (iii) a €31.0 million impairment charge on an investment in an equity accounted investee.

n Adjusted EBITDA(3) of €1,117.1 million in 2016, +18% yoy and +3% yoy on a rebased basis. Adjusted EBITDA for both 2016 and 2015 included benefits of €6.0 million and €7.6 million, respectively, linked to the settlement of certain operational contingencies. Our Adjusted EBITDA growth was primarily driven by (i) advanced synergies from the BASE acquisition, (ii) lower integration and transformation costs in Q4 2016 versus the prior year period and (iii) overall control of our overhead expenses. Q4 2016 Adjusted EBITDA of €269.3 million, +23% yoy and +4% yoy on a rebased basis.

n Accrued capital expenditures(4) of €626.8 million in 2016, reflecting (i) the recognition of the Belgian and UK football broadcasting rights, (ii) higher network investments as part of our 1 GHz HFC upgrade project and the start of our mobile network upgrade program and (iii) the effects of the BASE acquisition. Excluding the impacts related to football broadcasting rights, accrued capital expenditures represented around 22% of revenue.

n Net cash from operating activities, net cash used by investing activities and net cash from financing activities of €749.1 million, €1,660.2 million and €733.0 million, respectively, for the full year 2016, leading to Adjusted Free Cash Flow(5) of €265.8 million in 2016 (Q4 2016: €99.1 million).

n Regulatory headwinds and structural pressures on our prepaid mobile segment will impact our top line growth rate in 2017. Against this regulatory backdrop, we expect stable rebased revenue growth and solid mid-single-digit rebased Adjusted EBITDA(a) growth in 2017 driven by higher synergies from the BASE acquisition and overall focus on cost management. Accrued capital expenditures, excluding football broadcasting rights, expected to be around 24% of revenue in 2017, impacted by our mobile network upgrade which should be substantially completed by mid-2018. Healthy Adjusted Free Cash Flow(b) targeted between €350.0-375.0 million for 2017.

n The board of directors has authorized a €60.0 million share buy-back program for the upcoming six-month period, effective today

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About Telenet SA

As a provider of entertainment and telecommunication services in Belgium, Telenet group is always looking for the perfect experience in the digital world for its customers. Under the brand name Telenet, the company focuses on offering digital television, high-speed Internet and fixed and mobile telephony services to residential customers in Flanders and Brussels.

Under the brand name BASE, it supplies mobile telephony, internet and television in Belgium. The Telenet Business department serves the business market in Belgium and Luxembourg with connectivity, hosting and security solutions. More than 3,000 employees have one aim in mind: making living and working easier and more pleasant.

Telenet group is part of Telenet Group Holding NV and is a 100% owned subsidiary of Liberty Global. Liberty Global is one of the world’s leading converged video, broadband and communications companies, innovating and empowering people in six countries across Europe to make the most of the digital revolution. For more information, we refer to www.telenet.be

The Telenet newsroom can be found at press.telenet.be

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