Telenet posts 1% growth in FY21 revenue

10 Feb 2022

Belgian full-service telecom operator Telenet has released its annual results for the twelve months ending 31 December 2021, noting solid operational and financial results last year enabled it to deliver on all metrics in its FY21 guidance and medium-term outlook over the 2018-2021 period.

Full-year revenue rose by 1% year-on-year on both a reported and rebased basis to EUR2.596 billion (USD2.966 billion), reversing a previously negative trend thanks to higher subscription revenue. Net profit was 16% higher than in 2020 at EUR393.6 million, reflecting significantly lower net finance expense and a 1% increase in operating profit to EUR599.2 million, partly offset by higher income tax expense and a EUR12.2 million impairment in Q4 on its investment in Luxembourg cable operator Eltrona. Adjusted EBITDA, meanwhile, declined by 1% y-o-y to EUR1.368 billion, including changes to the IFRS accounting treatment of certain content-related costs for the company’s premium entertainment packages and Belgian football broadcasting rights due to changes related to the underlying contracts as of Q3 2020. On a rebased basis, however, the company noted full-year adjusted EBITDA increased by almost 2% y-o-y, in line with its FY 2021 guidance. Accrued capital expenditure (excluding football broadcasting rights, mobile spectrum licences and certain lease-related capital additions) was 1% higher at EUR542.8 million.

At 31 December 2021 Telenet reported a total of 2.950 million mobile telephony subscriptions, a slight decline from 2.962 million twelve months earlier, 1.726 million fixed broadband subscriptions (up 2% y-o-y), 1.1 million fixed voice telephony subscriptions (6% lower) and 1.762 million TV subscriptions (down 3%). The fixed monthly ARPU per customer relationship reached EUR59.1 in FY21, up 1% y-o-y, driven by a larger share of both higher-tier broadband and multi-play subscriptions in the overall customer mix as well as certain price adjustments.

Looking ahead to 2022, Telenet CEO John Porter noted it promises to be ‘another pivotal year’ with two important strategic projects set to be finalised in the coming months. The company expects to announce a binding agreement with utility provider Fluvius in the spring concerning their plans to create an open access fibre network in the Flanders region, while the telco also intends to finalise the preliminary market assessment for its mobile tower business towards the end of Q1.

Belgium, Telenet (incl. BASE)