TELENET : First Quarter 2015 Results

• Improved revenue growth of 6% yoy to €443.4 million, driven by higher cable subscription revenue and double-digit top line growth in mobile telephony and B2B;
• Adjusted EBITDA of €235.0 million, yoy growth impacted by €12.5 million one-off benefit in Q1 2014;
• Acquisition of BASE Company for €1.325 billion will provide stable long-term mobile access and secures our future as a leading integrated telecommunications provider.

HIGHLIGHTS 

• Continued focus on product quality, innovation and providing an amazing customer experience drove a 9% net increase in triple-play subscribers, representing around 48% of our customer base;
• Surpassed 900,000 mobile postpaid subscribers⁽⁸⁾, driven by a sequential improvement in net mobile postpaid subscriber acquisitions in Q1 2015 to 30,200 as a result of our attractive handset subsidy offers;
• Revenue of €443.4 million, up 6% yoy, driven by solid multiple-play growth, the benefit from selective price increase on certain fixed services in January 2015 and double-digit growth in our mobile and B2B activities;
• Adjusted EBITDA⁽¹⁾ of €235.0 million in Q1 2015, down 1% yoy, as Q1 2014 included a nonrecurring €12.5 million benefit from the settlement of certain operational contingencies. Excluding this nonrecurring impact, we achieved a solid underlying growth in our Adjusted EBITDA despite higher handset subsidy costs;
• Accrued capital expenditures⁽²⁾ of €89.6 million, around 20% of revenue, impacted by the recognition of the Belgian football broadcasting rights for the 2015-2016 season. Excluding this impact, accrued capital expenditures were around 14% of revenue as a result of phasing and lower set-top  box expenditures;
• Free Cash Flow⁽³⁾ of €24.6 million for Q1 2015, down €3.0 million, or 11% yoy, as a result of substantially higher cash taxes, partly offset by working capital improvements and lower cash interest expenses;
• Full year outlook reaffirmed: revenue and Adjusted EBITDA growth of 4-5% and around 4% respectively, accrued capital expenditures of around 21% of revenue and Free Cash Flow of €240.0-250.0 million.