Belgian cableco Telenet has published its financial results for the nine months ended 30 September 2014, revealing a 53% decline in net profit for the period to EUR71.4 million (USD96.8 million). Despite the company recording what it termed a ‘robust’ level of growth in operating profit in the nine months under review, it said that net income had fallen compared to 9M 2013 due to it incurring a EUR54.1 million non-cash loss on derivatives and recording a EUR7.3 million loss on the extinguishment of debt. Operating profit, by comparison, rose by 12% year-on-year to EUR414.5 million in 9M 2014.
Total turnover in the first nine months of 2014 was EUR1.271 billion, representing a 4% year-on-year increase, with the increase said to have been ‘impacted by substantially lower revenue from the sale of standalone handsets, lower analogue carriage fees and lower usage-related revenue’. According to Telenet, all of the revenue growth recorded for the period was organic and directly driven: by multi-play subscriptions; selective price increases on certain fixed services in February 2014; an increased contribution from mobile voice services; and a 4% increase in business services revenue.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the nine-month period totalled EUR687.4 million, meanwhile, representing an 8% increase against the corresponding period in 2013.
In operational terms, at the end of September 2014 Telenet’s broadband subscriber base stood at 1.512 million, up from 1.442 million a year earlier, while fixed voice accesses rose to 1.133 million, from 1.029 million at end-September 2013. Mobile voice customer numbers saw a notable increase, meanwhile, rising by 22% year-on-year to 868,500.
On the back of the results, John Porter, Telenet’s chief executive officer, noted: ‘Looking back at our solid financial performance over the first nine months and taking the current operational trends into account, we reconfirm our full year outlook. Hence, we continue to target revenue and adjusted EBITDA growth of between 4%-5% and between 5%-6% respectively for the full year. Accrued capital expenditures are expected to reach between 20%-21% of our revenue, while we anticipate to generate free cash flow between EUR230-EUR240 million.’