Telenet reports robust financial performance in H2 2020

30 Jul 2020

Belgian full-service telecoms operator Telenet has reported ‘robust financial performance’ in the six months ending 30 June 2020, posting 230% growth in net profit to EUR184.9 million (USD217.3 million), driven by significantly lower net finance and income tax expense during the period. H1 2020 revenue rose 1% to EUR1.27 billion including the acquisition of De Vijver Media and the sale of the company’s Luxembourg cable business, although the top line declined by almost 3% on a rebased basis, due to significantly lower other revenue following the effects of the COVID-19 pandemic. Excluding other revenue, both the reported and rebased revenue was stable compared to the same period of last year, in line with the company’s outlook. H1 2020 adjusted EBITDA rose 5% year-on-year on a reported basis and 2% on a rebased basis, driven by lower sales and marketing expenses during the pandemic.

At 30 June 2020 Telenet reported a total of 2.79 million mobile telephone subscribers, an increase of 2% on the same period of 2019, 1.677 million broadband customers (up 1% y-o-y), 1.195 million fixed line telephony subscribers (down 3%) and 1.836 million TV customers (4% lower). The company highlighted continued strong growth in FMC customers to 598,000 at end-June 2020, a 28% increase y-o-y, representing around 29% of total customer relationships and driving 7,300 net mobile post-paid subscriber additions in Q2. A higher share of multi-play and higher-tier broadband customers, as well as certain price adjustments, resulted in 2% growth in fixed ARPU per customer relationship to EUR58.4 in the first six months.

Commenting on the results, CEO John Porter highlighted the performance of Telenet’s HFC network: ‘Our network is fully resilient during the COVID-19 pandemic, despite increased usage. Upstream data traffic on our HFC network increased 50%, and downstream 20% on average in Q2 2020, without any major outages … The average download speed per customer in Q2 further increased to 206Mbps, almost 50% faster compared to the same period last year. This yet again illustrates the solid state of our Gigabit fixed infrastructure and it’s our key goal to maintain network leadership in the future as well.’

Belgium, Telenet (incl. BASE)