Full Year 2021 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 all metrics of our FY 2021 guidance and medium-term outlook over the ​ 2018-2021 period, having achieved solid operational and financial results in 2021.
• Continued execution against our shareholder remuneration policy and leverage framework with the board proposing to the April 2022 AGM a gross final dividend of €1.375 per share and having completed around 76% of our Share Repurchase Program 2021.
• Having reversed the negative top line trend in 2021, we expect to realize organic revenue and Adjusted EBITDA^(a) growth of around 1% in 2022, while continuing to invest for growth leading to flat Adjusted Free Cash Flow^(a) relative to last year on the same basis.

Mechelen, February 10, 2022– 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, 2021.

HIGHLIGHTS

• Ongoing constructive discussions with Fluvius on the data network of the future in Flanders and we remain confident on our ability to enter into binding legal documents in spring, as mentioned earlier. In addition, we have made good progress on the strategic review of our mobile tower business, including a preliminary market assessment which we expect to finalize towards end-Q1.
• Again solid operational performance in Q4 2021 with an accelerated uptake of net new FMC customers driven by our "ONE(Up)" bundles (+36,500), robust net new subscriber growth for our broadband internet , enhanced video and mobile postpaid offers of 6,100, 2,300 and 13,400, respectively.
• The fixed monthly ARPU per customer relationship reached €59.1 in FY 2021, up 1% yoy, driven by a higher share of both higher-tier broadband and multiple-play customers in our overall customer mix and the benefit of certain price adjustments, partly offset by a greater proportion of revenue being allocated to mobile telephony from our recently launched "ONE(Up)" FMC bundles compared to our legacy bundles.
• FY 2021 revenue of €2,595.8 million, driven by higher subscription revenue. Having achieved 1% growth yoy on both a reported and rebased⁽¹⁾ basis, we managed to reverse the negative trend in our revenue profile, in line with our FY 2021 guidance. Broadly stable revenue in Q4 2021 compared to Q4 last year, both on a reported and rebased basis, of €666.9 million driven by the same factor as mentioned above.
• Net profit of €393.6 million in FY 2021 (Q4 2021: €91.9 million), +16% yoy, reflecting significantly lower net finance expense and a 1% operating profit increase, partly offset by higher income tax expense and a €12.2 million impairment in Q4 on our investment in the Luxembourg cable operator Eltrona.
• FY 2021 Adjusted EBITDA⁽²⁾ of €1,367.5 million, -1% yoy, including changes to the IFRS accounting treatment of certain content-related costs for our premium entertainment packages and the Belgian football broadcasting rights because of changes related to the underlying contracts as of Q3 2020. On a rebased basis, our FY 2021 Adjusted EBITDA increased almost 2% yoy, in line with our FY 2021 guidance. This was driven by a healthy organic top line growth and stable operating expenses over the period. Q4 2021 Adjusted EBITDA of €340.4 million, +1% yoy both on a reported and rebased basis, reflecting lower direct and sales and marketing expenses, which more than offset the increases in the other cost lines.
• Accrued capital expenditures⁽³⁾ of €635.6 million in FY 2021 (Q4 2021: €218.4 million), +6% versus last year and approximately 25% of revenue. Excluding (i) the recognition of certain football broadcasting rights, (ii) the temporary extension of both our 2G and 3G mobile spectrum licenses and (iii) certain lease-related capital additions from our accrued capital expenditures, our FY 2021 accrued capital expenditures were €542.8 million, equivalent to approximately 21% of revenue.
• Adjusted EBITDA less property & equipment additions (previously referred to as Operating Free Cash Flow)⁽⁴⁾ of €824.7 million in 2021 (Q4 2021: €181.4 million), -2% yoy, mainly driven by modestly higher investments. On a rebased basis and excluding the recognition of both football broadcasting rights and mobile spectrum licenses, as well as the impact of certain lease-related capital additions on our accrued capital expenditures, our FY 2021 Adjusted EBITDA less property & equipment additions was stable yoy, in line with our FY 2021 guidance, thus achieving a 6.9% CAGR over the 2018-2021 period.
• Net cash from operating activities, net cash used in investing activities and net cash used in financing activities of €1,029.6 million, €497.6 million and €474.5 million, respectively, in FY 2021. Achieved FY 2021 Adjusted Free Cash Flow⁽⁵⁾ as guided, €1.2 million above the midpoint of our €420.0 to €440.0 million range and up 4% yoy on the same basis, driven by lower cash taxes paid and cash interest expenses, partly offset by a decrease in our vendor financing program. Q4 2021 as reported Adjusted Free Cash Flow under the revised definition (as discussed in Section 2. Financial highlights) of €103.3 million, reflecting a decline in our vendor financing program as a result of seasonality in the underlying payments.
• In 2022, we expect organic revenue and Adjusted EBITDA^(a) growth of around 1% yoy, offsetting higher staff-related and network operating expenses through continued cost control. We will continue to invest for growth in 2022. Including both 5G and advanced fiber investments, as detailed in our Outlook section, we expect accrued capital expenditures to represent around 25% of revenue^(b). Targeting a stable Adjusted Free Cash Flow^{(a, c)} relative to 2021, we will be able to largely absorb the adverse impact of higher investments on our Adjusted Free Cash Flow, while more than covering our annual dividend floor.
• In line with our shareholder remuneration policy, the board of directors has decided to propose to the April 2022 AGM to approve the payment of a gross final dividend of €1.375 per share. In parallel, we continue to execute the remainder of our Share Repurchase Program 2021, which was approximately 76% completed at the date of this release.

(a) Quantitative reconciliations to net profit (including net profit growth rates) and cash flows from operating activities for our Adjusted EBITDA and Adjusted Free Cash Flow guidance cannot be provided without unreasonable efforts as we do not forecast (i) certain non-cash charges including depreciation and amortization and impairment, restructuring and other operating items included in net profit, nor (ii) specific changes in working capital that impact cash flows from operating activities. The items we do not forecast may vary significantly from period to period.

(b) Excluding the recognition of the capitalized football broadcasting rights and mobile spectrum licenses and excluding the impact from certain lease-related capital additions on our accrued capital expenditures.

(c) Assuming certain payments are made for the temporary prolongation of our current 2G and 3G mobile spectrum licenses in 2022, yet excluding payments on any future spectrum licenses as part of the upcoming multiband auction, and assuming the tax payment on our 2021 tax return will not occur until early 2023.