Multi-play offerings boost Telenet’s 1H EBITDA, revenue

4 Aug 2010

Belgian cableco Telenet has posted an 8% year-on-year increase in earnings before interest, tax, depreciation and amortisation (EBITDA), attributed in part to the increased uptake of bundled services. For the six months ended 30 June 2010 the company posted adjusted EBITDA of EUR329.6 million (USD430.8 million) compared to EUR305.3 million in the same period a year earlier. Revenue meanwhile also rose, climbing 11% compared to 1H 2009 at EUR638.6 million. Net profit, however, fared less well, with Telenet reporting a 54% decline against the previous year to EUR21.8 million for the six-month period; it said the slump was the result of a EUR60 million non-cash loss on derivatives.

The operator also revealed a solid performance in operational terms in the first half of 2010, noting that it had seen record net additions in the six-month period, which included what it claimed is traditionally its weakest quarter for growth (April to June). In 1H 2010 Telenet added 215,000 new customers, of which 94,000 signed up in 2Q 2010. With the company’s broadband subscriber base rising to 1.174 million at the end of June 2010, it also revealed that the number of customers taking triple-play offerings reached 689,000 compared to 606,000 a year earlier, representing a 14% y-o-y increase. According to the operator 30% of its total customer base have signed up to triple-play packages, while 55% are signed up to at least two services.

Commenting on the result, Duco Sickinghe, Telenet CEO, noted: ‘Following an exceptionally buoyant 2009, which was in part driven by pent-up demand for our digital television service and multiple bundles in the acquired Interkabel service footprint, we were pleased to see that the commercial traction for our market-leading products remained strong in the first six months of 2010. We achieved our strongest second quarter net additions for broadband internet ever, excluding last year’s impact of the pent-up demand in the Interkabel area.’

Belgium, Telenet (incl. BASE)