Telenet grows FMC subscription base in mixed Q1

29 Apr 2022

Belgian full-service telecoms provider Telenet has published its financial results for the three months ended 31 March 2022, highlighting a significant rise in its fixed-mobile converged (FMC) subscription base amid slower growth in fixed broadband and post-paid mobile services. In the period under review, the company generated total revenues of EUR644.8 million (USD677.9 million), broadly unchanged from EUR645.9 million in Q1 2021, in part due to exceptional items. Adjusted EBITDA, meanwhile, was down nearly 2% at EUR328.5 million, driven by what the company described as a tough comparison base due to certain one-off elements last year, as well as the impact of higher inflation on staff and other costs. Net profit in the period rose 43% to EUR160.4 million from EUR112.5 million, while accrued capital expenditure (excluding football broadcasting rights, mobile spectrum licences and certain lease-related capital additions) totalled EUR139.8 million, up 4% from EUR133.8 million in Q1 2021 and equivalent to 21.7% of revenue (Q1 2021: 20.7%).

At 31 March 2022 Telenet reported a total of 2.947 million mobile subscriptions, compared with 2.955 million twelve months earlier, with a 2% net gain in post-paid accounts largely offsetting a 14% drop in pre-paid subscriptions. The group also had 1.729 million fixed broadband accesses (up 1% y-o-y), 1.747 million TV subscriptions (down 3%) and 1.078 million fixed voice telephony connections (7% lower). Telenet added 22,700 net new FMC subscriptions in the quarter, bringing the total to 772,400 at the end of Q1 2022, up 17% year-on-year. Monthly fixed APRU fell nearly 2% to EUR58.7, however, due to exceptional items in the year earlier period.

With regard to its major strategic projects, Telenet said it continues to engage in constructive discussions with utility provider Fluvius regarding plans to build a joint open access fibre network in the Flanders region, although a binding agreement is now expected before publication of its H1 2022 results as opposed to the initial target of the spring. The company also reiterated the EUR745 million deal to sell its mobile tower business to DigitalBridge Group is expected to close in the second quarter.

Belgium, Telenet (incl. BASE)