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- Delivering on our FY outlook and off to a good start to realize our three-year strategic plan, targeting an Operating Free Cash Flow CAGR(a) between 6.5-8.0% over 2018-2021.
- Adjusted EBITDA back to growth in 2020 against broadly stable revenue on a rebased basis. Expecting robust Adjusted Free Cash Flow between €415.0-435.0 million in 2020.
- Delivering on our shareholder remuneration timeline: (i) a gross final dividend of €143.2 million (€1.30 per share) and (ii) a €55.0 million share buy-back program in 2020.
Brussels, February 12, 2020 – 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 year ended December 31, 2019.
- Continued strong FMC growth to 547,400 customers at the end of Q4 2019, up 37% yoy, reaching around 26% of total customer relationships. On the fixed side, we noted an improved net subscriber trend for all products relative to Q3, driven by our revamped product portfolio and attractive end-of-year promotions.
- Another strong quarter in terms of net mobile postpaid subscriber growth in Q4 (+39,000), primarily driven by continued FMC growth.
- A higher share of multiple-play and higher-tier broadband customers and the benefit of certain price adjustments drove a healthy 3% yoy growth in the fixed ARPU per customer relationship to €57.7 in 2019.
- FY 2019 revenue of €2,583.9 million, up 2% 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 just over 1% (1.2%), significantly better compared to our previously tightened top line guidance of around -2%. The better-than-anticipated revenue performance was mainly related to higher handset sales during Q4 2019 and higher production revenues at De Vijver Media. Q4 2019 revenue of €673.3 million, +5% yoy on a reported basis and nearly stable versus last year (-0.7%).
- Net profit of €234.6 million for FY 2019 (Q4 2019: €91.7 million), being a 6% decrease yoy driven by higher net finance expenses in the period, offsetting a robust 15% yoy increase in our operating profit.
- Adjusted EBITDA of €1,375.4 million for FY 2019, +4% 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 FY 2019 contracted by nearly 2% yoy (-1.7%). Our rebased Adjusted EBITDA margin remained broadly stable in 2019 versus 2018 at 53.2%, driven by continued tight cost control and our ability to achieve operating leverage across the business. Q4 2019 Adjusted EBITDA of €350.9 million, up 6% yoy a reported basis and -4% yoy on a rebased basis driven by (i) the loss of the MEDIALAAN MVNO contract, (ii) higher sales and marketing expenses and (iii) a tougher comparison base relative to a strong Q4 last year.
- Accrued capital expenditures(3) of €586.9 million for FY 2019, including the recognition of the UK Premier League broadcasting rights for the upcoming three seasons, a 15% decrease versus the prior year. 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 23% increase in Operating Free Cash Flow(4) to €821.3 million for FY 2019, up 18% on a rebased basis and excluding the impact of IFRS 16.
- Net cash from operating activities, net cash used in investing activities and net cash used in financing activities of €1,092.5 million, €432.0 million and €647.3 million, respectively, for FY 2019. Adjusted Free Cash Flow(5) of €391.0 million for FY 2019 (Q4 2019: €120.9 million), -7% compared to last year. Our 2019 Adjusted Free Cash Flow included a €94.2 million lower contribution from our vendor financing program. Excluding this impact, our underlying Adjusted Free Cash Flow was up 19% year-on-year.
- Confident to deliver on our three-year strategic plan, targeting rebased Adjusted EBITDA and Operating Free Cash Flow growth of around 1% and around 2% for 2020, respectively, against broadly stable revenue. Robust Adjusted Free Cash Flow targeted for 2020 between €415.0-435.0 million, underpinned by an attractive shareholder remuneration profile as announced separately this morning.