Full Year 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. Inside information.

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.

HIGHLIGHTS

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.