First Half 2017 Results

  • Continued traction for our all-in-one converged "WIGO" bundles: 224,400 subscribers at June 30, 2017 with 35,800 net subscribers added in Q2 2017 and revamped offers as of late June 2017.
  • Adjusted EBITDA of €592.4 million in H1 2017 (+5% yoy rebased), which included a two-week impact from SFR Belux, and net profit of €76.8 million versus a net loss of €19.6 million in H1 2016.
  • Full year 2017 outlook reconfirmed post SFR BeLux integration, on track to achieve a 5-7% Adjusted EBITDA(a) CAGR over the 2015-2018 period.

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.

Brussels, Wednesday, August 2, 2017 – 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 six months ended June 30, 2017.

HIGHLIGHTS

  • Continued traction for our "WIGO" bundles, resulting in 224,400 "WIGO" subscribers at June 30, 2017. Robust net inflow of 35,800 "WIGO" subscribers in Q2 2017, whereas net subscriber growth for our fixed cable services continued to be impacted by the intensely competitive environment.
  • Accelerated net mobile postpaid subscriber growth in Q2 2017 (+60,200) driven by continued traction for our "WIGO" bundles and promotional offers at BASE. Our total number of 2,838,700 active mobile subscribers reflected the removal of 53,300 non-registered prepaid SIMs from our subscriber count.
  • BASE integration well under way as we already upgraded just over half of our macro sites with continued customer migrations to our acquired network, on track to reach €220.0 million of synergies targeted by 2020.
  • Successful closing of the SFR BeLux acquisition, extending our footprint in Brussels and gaining access to parts of Wallonia and Luxembourg. SFR BeLux contributed €1.9 million and €1.1 million to both our Q2 and H1 2017 revenue and Adjusted EBITDA since the acquisition date of June 19, 2017.
  • Revenue(2) of €1,238.3 million in H1 2017 (+5% yoy), reflecting (i) a full six-month contribution from BASE, (ii) the acquisition of SFR BeLux as of June 19, 2017 and (iii) the sale of Ortel to Lycamobile as of March 1, 2017. On a rebased basis(1), our revenue in H1 2017 was stable yoy with higher cable subscription and B2B revenue being offset by continued pressure on our mobile business. Q2 2017 revenue of €622.3 million, a decrease of 1% on a reported basis and stable on a rebased basis including a two-week impact from SFR BeLux.
  • Net income of €76.8 million in H1 2017 versus a net loss of €19.6 million in H1 last year. Net income for H1 2017 was impacted by (i) the increase in Adjusted EBITDA, as discussed below, (ii) a €143.6 million non-cash foreign exchange gain on our USD-denominated debt, (iii) a €113.6 million non-cash loss on our derivatives and (iv) a €46.5 million loss on the extinguishment of debt following certain refinancings in Q2 2017.
  • Adjusted EBITDA(3) of €592.4 million in H1 2017, +7% yoy on a reported basis and +5% yoy on a rebased basis, and including a two-week contribution from SFR BeLux. Our Adjusted EBITDA growth was primarily driven by (i) lower costs associated with handset sales and subsidies, (ii) lower sales and marketing expenses due to phasing of certain campaigns, (iii) lower integration and transformation costs versus the prior year period and (iv) overall control of our overhead expenses. Adjusted EBITDA of €303.0 million in Q2 2017, +5% yoy on a rebased basis despite Q2 last year including a €6.0 million nonrecurring benefit from the settlement of our Full MVNO Agreement with Orange Belgium.
  • Accrued capital expenditures(4) of €279.1 million in H1 2017 represented approximately 23% of our revenue. Compared to H1 last year, our accrued capital expenditures reflected higher network investments as part of our 1 GHz HFC upgrade project and the start of our mobile network upgrade program.
  • Net cash from operating activities, net cash used in investing activities and net cash from financing activities of €380.7 million, €650.4 million and €194.5 million, respectively, for H1 2017. Adjusted Free Cash Flow(5) of €137.1 million in H1 2017, up 131% yoy (Q2 2017: €153.0 million, +19% yoy).
  • Slightly less than half of the Share Repurchase Program 2017 had been executed on June 30, 2017. Therefore, the program has been extended until the end of this year, committed to repurchase a maximum of 1.1 million outstanding shares by year-end 2017.