Telenet see 3% revenue increase in 1Q14 as lower handset sales hinder growth

28 Apr 2014

Belgium’s Telenet has revealed relatively flat revenues in the first three months of 2014, with the cableco pointing to the impact of ‘substantially lower’ turnover from standalone handset sales and temporary price promotions. Saying also that it had only a ‘partial benefit’ from price increases introduced in February 2014, Telenet recorded a total turnover of EUR416.8 million (USD571 million) in the quarter ended 31 March 2014, representing a 3% increase year-on-year. Adjusted EBITDA for the period under review stood at EUR237.8 million, meanwhile, representing a 18% increase against the corresponding quarter of 2013, with the growth said to have been primarily driven by lower costs associated with handset subsidies. Operating profit for the cableco in 1Q 2014 stood at EUR147.6 million, up 45% y-o-y, again thanks to lower costs related to subsidies and handset sales, as well as lower expenses related to share based compensation and lower depreciation and amortisation charge. Net income in 1Q14 meanwhile totalled EUR38.8 million, roughly unchanged from the EUR38.4 million recorded in the year earlier period.

In operational terms, at the end of March 2014 Telenet had a total of 1.481 million broadband revenue generating units, with 16,000 net additions in the first quarter of the year. Further, it noted that 51.1% of the households within its network footprint were now subscribed to one of its broadband plans, up from 49.0% a year earlier. Fixed voice accesses also continued to increase, a growth trend which the operator attributed to the ‘successful repositioning of [its] multi-play bundles and the availability of attractively-priced flat-rate fee plans’; at end-March 2014 Telenet had 1.088 million fixed voice subscribers, up 10% year-on-year. Mobile accesses grew at a faster rate, with the cableco – which offers such services as a mobile virtual network operator (MVNO) over Mobistar’s network – reporting 779,8000 post-paid mobile wireless voice subscribers as at end-March 2014.

Belgium, Telenet (incl. BASE)