Telenet grows FMC subscription base in Q2

28 Jul 2022

Belgian full-service telecoms operator Telenet has published its financial results for the six months ended 30 June 2022, highlighting a significant rise in its fixed-mobile converged (FMC) subscription base amid slower growth in fixed broadband and mobile accounts. The company generated total revenues of EUR1.292 billion (USD1.31 billion) in 1H22, broadly flat compared to EUR1.288 billion in the corresponding period of 2021, which included certain one-off benefits. Adjusted EBITDA, meanwhile, was down 3% year-on-year to EUR670.6 million, driven by the impact of higher inflation on staff and other expenses, increased network operating costs resulting from higher energy prices, as well as a tougher comparison base. Following completion on 1 June of the EUR745 million sale of its mobile phone tower assets to DigitalBridge Investments, the company was able to report a ‘robust’ 275% y-o-y increase in net profit to EUR793.4 million in the period under review. Accrued capital expenditure (excluding football broadcasting rights, mobile spectrum licences and certain lease-related capital additions) totalled EUR294.4 million in 1H22 – up 11% y-o-y and equivalent to approximately 23% of revenue over the period.

At 30 June 2022 Telenet reported a total of 2.939 million mobile subscriptions, down 1% from 2.957 million twelve months earlier, with a 1% net gain in post-paid accounts failing to offset a 15% drop in pre-paid subscriptions. The group also had 1.729 million fixed broadband accesses (up 1% y-o-y), 1.732 million TV subscriptions (down 3%) and 1.057 million fixed voice accounts (7% lower). Telenet added 16,500 net new FMC subscriptions in the quarter, bringing the total to 788,900 at the end of Q2 2022 (up 15% y-o-y). Monthly fixed APRU fell nearly 1% to EUR58.3, however.

Reconfirming its FY2022 outlook, the company said it expected an improved trend in both its revenue and adjusted EBITDA performance in the second half of the year, driven by certain price adjustments which came into effect in mid-June, as well as a continued focus on operating expenses and tight cost control. Telenet is forecasting 1% growth in annual revenues and adjusted EBITDA, accrued CAPEX as a percentage of revenue of around 25%, and adjusted free cash flow to remain flat versus FY21.

Belgium, Telenet (incl. BASE)