Telenet net profit falls 20% in Q3; commences strategic review of tower business

28 Oct 2021

Belgian full-service telecom operator Telenet has announced ‘solid operation and financial results’ in the three months ending 30 September 2021, posting revenues of EUR640.6 million (USD743.3 million) in the third quarter, compared with EUR637.9 million in the corresponding period of 2020, driven by solid expansion in the company’s total subscription revenue and its B2B business. Adjusted EBITDA, meanwhile, slipped 1% to EUR338.4 million and net profit sank 20% to EUR90 million, driven by a 7% fall in operating profit that was only partly offset by lower net finance expense. Accrued capital expenditure reached EUR417.2 million in 9M21 (3Q21: EUR135.4 million), down 2% on the corresponding period of 2020. Excluding the recognition of certain football broadcasting rights and the temporary extension of both its 2G and 3G mobile spectrum licences, its 9M21 accrued capital expenditures were EUR397.0 million, equivalent to approximately 21% of revenue.

At 30 September 2021 Telenet reported a total of around 2.953 million mobile subscriptions (a decline from 2.962 million twelve months earlier), almost 1.72 million broadband subscriptions (up 2% y-o-y), over 1.122 fixed voice subscriptions (down 5%) and 1.774 million TV subscriptions (3% lower). The company highlighted continued growth in FMC subscriptions to 713,200 at end-September, a 15% increase y-o-y and representing a full convergence rate of 32.9%. A higher share of multi-play and higher-tier broadband subscriptions, as well as certain price adjustments, resulted in 1% y-o-y growth in fixed ARPU per customer relationship to EUR58.6 in Q3 2021.

Telenet also announced that, in line with its commitment to enhancing shareholder value, it has decided to commence a strategic review of its telecoms tower business, including a preliminary market assessment, amid what it described as ‘strong demand for telecommunications assets generally and, as the case may be, broader strategic transactions for the company’. Telenet operates a nationwide mobile network of 3,311 sites in Belgium, including 2,145 owned sites – of which 37% are towers – and 1,166 third-party sites.

Belgium, Telenet (incl. BASE)