Customer growth sees Telenet report solid financials for FY2012

12 Feb 2013

Belgium’s Telenet has reported its financial results for the twelve month period ended 31 December 2012, with the cableco revealing it almost doubled net profit compared to the previous fiscal year. For 2012 Telenet posted a net income of EUR33.2 million (USD42.7 million), up from EUR16.8 million in FY11, on revenues that increased by 8% year-on-year to EUR1.49 billion. According to Telenet, higher turnover stemmed from ‘underlying RGU growth’, along with a continued migration to digital TV and more customers upgrading their broadband service to one of the cableco’s fibre-optic-based ‘Fibernet’ tariffs. Turnover from its broadband services grew by 3% y-o-y to EUR453.8 million, while residential telephony services generated EUR333.4 million, representing a 19% increase compared to FY11. Full year adjusted EBITDA meanwhile stood at EUR777.8 million, an 8% increase.

In operational terms, at the end of December 2012 Telenet’s broadband subscriber base had risen to 1.388 million, compared to 1.306 million a year earlier. Fixed telephony accesses rose by 10% y-o-y to reach 968,700, while mobile voice customer numbers soared, more than doubling to 521,600. Uptake of bundled services also continued, with Telenet reporting a total of 860,400 triple-play customers, representing a 10% increase compared to 31 December 2011.

Looking ahead, Telenet CEO Duco Sickinghe outlined the company’s expectations for the coming financial year, noting: ‘For the full year 2013, we target top line growth between 10% and 11 as a result of a higher uptake of multiple‐play services and a growing share of mobile revenue. Our adjusted EBITDA is expected to grow between 7% and 8%, reflecting a bigger share of lower‐margin mobile activities offset by our persistent focus on further efficiency improvements. Accrued capital expenditures will represent between 21 and 22% of revenue.’

Belgium, Telenet (incl. BASE)