Telenet revenue grows on increased subscriber numbers

31 Jul 2013

On the back of a ‘growing contribution’ from its mobile operations and increased fixed line revenue generating units (RGUs), Belgian cableco Telenet has reported a 12% year-on-year increase in revenue to EUR813.6 million (USD1.06 billion) in H1 2013. Having achieved adjusted EBITDA of EUR417.8 million in the six-month period ended 30 June 2013, representing an increase of 8% compared to the prior year period, the operator noted that this included a favourable impact from certain nonrecurring items. Operating profit for the first half of this year, meanwhile, stood at EUR242.2 million, up 27% rise against the H1 2012, while net profit surged by 340% to EUR110.0 million, although Telenet noted that excluding the change in the fair value of its derivatives in both H1 2012 and H1 2013, as well as a one‐time benefit from lower depreciation charges in the second quarter of 2013, net income would have been EUR43.2 million and EUR63.0 million in H1 2013 and H1 2013, respectively. As such, it said that the year‐on‐year decline in underlying net income, excluding gains and losses on its derivatives, primarily reflected a 23% increase in interest expense as a result of its increased debt balance and higher income tax expense.

With the company’s CEO John Porter noting that the second quarter is ‘typically a softer quarter in terms of operational growth due to seasonal patterns in [the company’s] business’, Telenet still registered what it said was a ‘solid set of net subscribers’. To that end, in the three months ended 30 June 2013 the cableco’s broadband internet access increased by 15,500 net subscribers to reach 1.424 million (representing a 6% year-on-year increase), while 9,700 net fixed voice subscribers were added in the period, to bring the total to 997,400. Telenet did, however, note that the performance in the fixed voice sector had been impacted by ‘a reduced focus on [its] triple‐play bundles in anticipation of the launch of [its] new simplified bundles … at the end of June 2013’. Mobile customer numbers, meanwhile, increased by 145% year-on-year to reach 674,900, with the operator having added 49,900 net post-paid subscribers in 2Q13, which was sequentially lower, as Telenet had anticipated.

Belgium, Telenet (incl. BASE)