第99.1展示文本
Telenet報告2024年第三季度初步結果
2024財年指引在強勁的財務業績和我們運營表現好轉的趨勢後得到了重新確認
2024年10月29日，梅赫倫 —— Te'se網絡集團控股NV（「Te'se」或「公司」）宣佈其截至2024年9月30日的三個月（「第三季度」）和九個月（「9M」或「YTD」）的未經審計的國際財務報告準則下的合併業績，該準則由歐盟採納（「EU IFRS」）。
Telenet首席執行官約翰·波特評論道:
「儘管市場背景具有挑戰性，但我很高興看到我們的商業表現持續改善。雖然我們的淨訂閱用戶數在第三季度持續下降，但我們的寬帶和視頻業績在2023年第1季度和2022年第2季度分別錄得最佳成績，而我們的移動後付費淨增用戶開始達到拐點。自6月份在整個比利時推出了我們的BASE FMC方案以來，我對BASE已經達到首個里程碑——10,000寬帶用戶並計劃在年底前已經達到下一個里程碑—25,000用戶感到興奮。同時，我們繼續看到客戶爲中心的『Check & Smile』解決方案的廣泛採納。已經有超過283,000名客戶完成了產品和網絡檢查，相當於我們MyTelenet應用的用戶總數的一半以上。在網絡方面，我們正在擴展我們的5g概念網絡升級，而通過我們與Fluvius的Wyre合作進行的FTTH推出正大幅加速。在財務方面，我們發佈了強勁的業績，如下文所述，這使我們很好地符合了確認全年展望的軌道。加上我們強勁的資產負債表，總流動性高達€157600萬，並且在2028年之前沒有債務償還，除了在供應商融資計劃下到期的金額，這將使我們爲未來做好充分準備。」
2024年第三季度運營和戰略亮點
•儘管市場環境嚴峻，促銷活動增加，但商業表現有所改善。更好的表現得益於我們在六月全國範圍推出的BASE FMC套餐，並繼續專注於客戶中心化。
•我們淨增用戶流失持續改善1 寬帶和視頻自2023年第一季度和2022年第二季度以來，季度減少幅度最低，分別爲-4,000和-16,400，並且移動後付費用戶淨增800。
•2024年9月30日，FMC家庭總計達到848,800戶，佔寬帶RGU的49.5%。我們的FMC客戶連接着我們覆蓋範圍內最優質的寬帶和移動網絡，並享有最豐富的高級娛樂體驗，包括國內和國際的流媒體服務以及體育項目。憑藉獨家的英超聯賽廣播權延長至2027/28賽季以及已經確保的歐冠聯賽權益，Play Sports現在牢固地成爲「歐洲足球之家」。
•固定客戶關係每月ARPU爲63.86歐元，按照報告基礎上漲了2.3%，這是由於2024年6月的費率提高導致的，部分被不利的層級組合效應抵消。
1
2024年Q3財務亮點：
•營業收入大致穩定，達到71430萬歐元，按照報告和校正基礎增長了0.3%。
◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。消費固定營業收入在報告和校準基礎上保持基本穩定（同比下降0.9%），因爲2024年6月利率上調的效益被較低的客戶基數所抵消。
◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。消費者移動營業收入按報告和調整基礎下降了6.1%，反映了(i) 互聯收入大幅下降，(ii) 手機銷售收入下降以及(iii) 由於預付費用戶基數減少和移動ARPU降低，訂閱收入下降了1.4%。
◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。B20億營業收入按報告和調整基礎同比下降3.5%，這是因爲（i）從Orange Belgium收購後失去VOO MVNO合同而導致的批發收入下降以及（ii）ICt和網絡安全概念相關收入下降。
◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。其他營業收入，包括媒體業務中的廣告和製作收入等，按報告和調整基礎分別大幅增長了36.0%和35.6%。其他營業收入的增加反映了（i）2024年第三季度承認先前已遞延營收約1700萬歐元的一次性影響及（ii）來自商業廣播電視頻道的節目和廣告收入增加。
•2023年第三季度，€1510萬的淨損失相比於€43920萬的淨利潤，其中包括與Wyre交易相關的€34610萬收益，該交易於去年7月1日結束。
◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。本季度的淨虧損是由18160萬歐元的淨財務費用引起的，這大大抵消了我們營業利潤的強勁同比增長。淨財務費用包括（i）19670萬歐元的衍生工具淨損失，（ii）11310萬歐元的利息費用、淨匯率損失和其他金融費用，部分抵消的（iii）我們以美元計價的債務獲得了11900萬歐元的非現金匯率收益以及（iv）我們現金投資獲得了920萬歐元的利息收入。
•經調整的EBITDA爲36600萬歐元，按照報告和重新計算的基礎增長了5.6%，其中包括來自前述的收益。 之前遞延營業收入的確認帶來一次性影響。
◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。此外，自2024年1月強制實施1.5%工資調整導致員工相關費用增加，同時我們的全職員工基數增長，以及相對於去年同期銷售和營銷費用增加，當時我們因遷移IT平台問題故意減少了營銷工作，這些總體效果超過了持續保持的嚴格成本控制，通過直接成本、網絡運營成本以及其他間接成本的減少來展示。因此，我們的調整後EBITDA利潤率從2023年第3季度的48.7%提高了250個點子，達到51.2%。
•經調整後的EBITDAaL按照報告和調整基礎增長了5.5%，達到34670萬元，反映出與本季度影響我們調整後EBITDA的相同因素。我們實現了48.5%的調整後EBITDAaL利潤率（2023年第三季度：46.2%），在報告和調整基礎上同比分別提高了230和240個點子。
•固定資產和設備增加了22760萬歐元，同比增長23.2%。根據我們全年的指引，不包括關於足球廣播權和某些租賃相關的資本增加，在營業收入中，固定資產和設備增加佔31.7%。我們的投資水平如預期般與前幾個季度相比有所提高，主要反映在更高的與網絡相關的投資，以下將進一步詳細介紹。
◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。客戶端設備增加，包括我們在機頂盒、調制解調器和WiFi電力線上的支出爲4150萬歐元，由於分階段原因，同比下降16.2%。
◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。由於計劃中對移動(5g概念)和固定(FTTH)網絡的投資增加，與去年同期相比，網絡相關投資增加了88.3%，達到 €8210萬。
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◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。產品和服務支出反映了對產品開發、新平台和系統的投資，總額爲3260萬歐元，同比下降了17.3%，因爲我們完成了最先進的IT平台升級，實現了積極的個性化客戶體驗。
◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。我們P&E增值的餘下部分包括(i)網絡設備的翻新和更換，(ii)體育和節目採購成本，包括由Play Media收購的某些內容，(iii)我們IT平台和系統的某些重複性投資以及 (iv)與租約相關的資本增加。所有這些加起來，達到了7140萬歐元，或者不計入某些足球廣播權和某些與租約相關的資本增加的部分爲7010萬歐元。以上意味着我們P&E增值的約69.0%（不包括某些足球廣播權和某些與租約相關資本增值的承認）與可擴展性和訂戶增長有關。
•調整後的EBITDA減去P&E增加額爲13970萬歐元，相較於上年同期報告基礎和調整基礎下下降了16.3%，這是由於我們業務的CAPEX密集度增加，部分被更高的部分抵消 調整後的EBITDA 結果。
•經營活動淨現金流量、投資活動淨現金流量和籌資活動淨現金流量分別爲23870萬歐元、18970萬歐元和4210萬歐元。
•調整後的自由現金流爲2540萬歐元，相當於同比下降61.3%，反映出(i) 由於我們的槓桿率增加導致現金利息支出增加2600萬歐元，以及(ii) 我們現金資本支出增加2010萬歐元，部分抵消了與2023年第三季度相比，我們的供應商融資計劃貢獻增加了890萬歐元，因爲我們的付款中有一些季節性因素影響。
•2024年9月30日，我們混合全額掉期債務融資成本爲3.9%（2024年6月30日：3.9%），第三方債務的平均期限約爲3.8年（2024年6月30日：4.1年），在2028年3月之前沒有債務償還，不包括供應商融資計劃下的較短期債務。
•2024年9月30日，根據我們相應的合規報告完成情況，淨總槓桿率和淨約束槓桿率分別爲4.1倍和3.0倍，分別與2024年6月30日的4.4倍和3.2倍相比
◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。槓桿比率的季度環比改善，是由我們年化調整後的EBITDAaL和調整後的EBITDA分別增加，以及2024年9月30日我們的現金餘額略微增加所驅動。
◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。淨契約槓桿率仍然明顯低於6.0倍的彈性維護契約和4.5倍的淨高級槓桿測試。維護契約僅在我們動用40%或更多循環信貸融資工具時觸發。截至2024年9月30日，如下所述，我們的循環授信融資工具尚未動用。
•截至2024年9月30日，我們可以獲得總流動性爲157600萬歐元，其中包括96100萬歐元的現金及現金等價物和61500萬歐元的未動用的循環信貸設施承諾。當我們完成季度合規性報告要求並假設從2024年9月30日起借款水平不變時，我們預計整個61500萬歐元的借款額度將繼續可用。
3
2024財務展望
•在今年頭九個月中取得了一些成就：
(i) 營業收入基本穩定（按照調整後的基礎下降了0.3%同比），
(ii) 調整後的EBITDAaL同比下降了2.4%，
(iii) P&E新增資本支出佔營收的比例爲29.0%，
(iv) 調整後的自由現金流爲16370萬歐元，儘管第四季度在盈利能力和現金流方面季節性較弱，但我們仍然朝着全年業績目標順利前進。
•FY 2024 outlook reaffirmed:
◦Revenue(i) (rebased FY 2023: €2,860.2 million): Broadly stable
◦Adjusted EBITDAaL(ii) (rebased FY 2023: €1,307.3 million): Mid-single digit decline
◦P&E Additions(iii) as a percentage of revenue: Around 32%
◦Adjusted FCF(ii, iv): Between €50.0 - €75.0 million
(i)On a reported based, our expected revenue growth for the full year 2024 would be broadly stable.
(ii)Adjusted EBITDAaL and Adjusted Free Cash Flow are non-GAAP measures, see the Glossary for definitions. Quantitative reconciliations to net profit/loss (including net profit/loss growth rates) and cash flow from operating activities for our Adjusted EBITDAaL and Adjusted Free Cash Flow guidance cannot be provided without unreasonable efforts as we do not forecast (i) certain non-cash charges including the components of non-operating income/expense, depreciation and amortization, and impairment, restructuring and other operating items included in net profit/loss, nor (ii) specific changes in working capital that impact cash flows from operating activities. The items we do not forecast may vary significantly from period to period.
(iii)Property and equipment additions exclude the recognition of (i) capitalized football broadcasting rights, (ii) mobile spectrum licenses and (iii) the impact of certain lease-released capital additions on our accrued capital expenditures.
(iv)Excluding payments on mobile spectrum licenses acquired as part of the 2022 multiband spectrum auction and assuming the tax payment on our 2023 tax return will not occur until early 2025.
4
Operating Statistics Summary
| As of and for the three months ended | |||||||||||
| September 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| Footprint | |||||||||||
Homes Passed(i) | 4,157,800 | 3,603,900 | |||||||||
| Fixed-Line Customer Relationships | |||||||||||
| Fixed-Line Customer Relationships | 1,971,800 | 2,020,100 | |||||||||
Q3 Organic1 Fixed-Line Customer Relationship net losses | (8,300) | (21,100) | |||||||||
| Fixed Services per Customer Relationship | 2.12 | 2.17 | |||||||||
Q3 Monthly ARPU per Fixed-Line Customer Relationship | € | 63.86 | € | 62.42 | |||||||
| Mobile Subscribers | |||||||||||
| Postpaid | 2,676,800 | 2,675,400 | |||||||||
| Prepaid | 203,800 | 242,900 | |||||||||
| Total Mobile subscribers | 2,880,600 | 2,918,300 | |||||||||
Q3 Organic Postpaid net additions | 800 | (4,000) | |||||||||
Q3 Organic Prepaid net losses | (10,300) | (9,300) | |||||||||
| Total Organic Mobile net losses | (9,500) | (13,300) | |||||||||
Q3 Monthly ARPU per Mobile Subscriber: | |||||||||||
| Including interconnect revenue | € | 17.10 | € | 17.62 | |||||||
| Excluding interconnect revenue | € | 15.72 | € | 15.84 | |||||||
| Fixed Mobile Convergence | |||||||||||
| Converged Households | 848,800 | 833,700 | |||||||||
| Converged Households as a % of Internet RGUs | 49.5% | 48.0% | |||||||||
(i) Amount for September 30, 2024 includes an aggregate adjustment of 67,900 Homes Passed to correct the overstatement of our June 30, 2024 reported Homes Passed. For additional information regarding these adjustments, see subscriber tables on page 13.
5
Selected Financial Results, Adjusted EBITDA and Adjusted EBITDAaL Reconciliation, Property and Equipment Additions
The following table reflects preliminary unaudited selected financial results for the three and nine months ended September 30, 2024 and 2023:
| Three months ended | Increase/(decrease) | Nine months ended | Increase/(decrease) | ||||||||||||||||||||||||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | Reported | Rebased2 | 2024 | 2023 | Reported | Rebased2 | ||||||||||||||||||||||||||||||||||||||||
| in millions, except % amounts | |||||||||||||||||||||||||||||||||||||||||||||||
Revenue(i) | |||||||||||||||||||||||||||||||||||||||||||||||
| Consumer fixed revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
| Subscription | € | 312.6 | € | 316.4 | (1.2 | %) | (1.2 | %) | € | 922.9 | € | 928.6 | (0.6 | %) | (0.6 | %) | |||||||||||||||||||||||||||||||
| Non-subscription | 4.0 | 3.1 | 29.0 | % | 29.0 | % | 9.1 | 12.5 | (27.2 | %) | (27.2 | %) | |||||||||||||||||||||||||||||||||||
| Total consumer fixed revenue | 316.6 | 319.5 | (0.9 | %) | (0.9 | %) | 932.0 | 941.1 | (1.0 | %) | (1.0 | %) | |||||||||||||||||||||||||||||||||||
| Consumer mobile revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
| Subscription | 105.5 | 107.0 | (1.4 | %) | (1.4 | %) | 314.1 | 314.0 | — | % | — | % | |||||||||||||||||||||||||||||||||||
| Non-subscription | 30.6 | 38.0 | (19.5 | %) | (19.5 | %) | 109.0 | 115.5 | (5.6 | %) | (5.6 | %) | |||||||||||||||||||||||||||||||||||
| Total consumer mobile revenue | 136.1 | 145.0 | (6.1 | %) | (6.1 | %) | 423.1 | 429.5 | (1.5 | %) | (1.5 | %) | |||||||||||||||||||||||||||||||||||
| B2B revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
| Subscription | 97.3 | 95.9 | 1.5 | % | 1.5 | % | 287.7 | 275.6 | 4.4 | % | 4.4 | % | |||||||||||||||||||||||||||||||||||
| Non-subscription | 85.8 | 93.9 | (8.6 | %) | (8.6 | %) | 261.4 | 282.1 | (7.3 | %) | (9.1 | %) | |||||||||||||||||||||||||||||||||||
| Total B2B revenue | 183.1 | 189.8 | (3.5 | %) | (3.5 | %) | 549.1 | 557.7 | (1.5 | %) | (2.5 | %) | |||||||||||||||||||||||||||||||||||
| Other revenue | 78.5 | 57.7 | 36.0 | % | 35.6 | % | 213.9 | 190.6 | 12.2 | % | 12.2 | % | |||||||||||||||||||||||||||||||||||
| Total | € | 714.3 | € | 712.0 | 0.3 | % | 0.3 | % | € | 2,118.1 | € | 2,118.9 | — | % | (0.3 | %) | |||||||||||||||||||||||||||||||
| Adjusted EBITDA | € | 366.0 | € | 346.7 | 5.6 | % | 5.6 | % | € | 1,010.5 | € | 1,023.7 | (1.3 | %) | (1.5 | %) | |||||||||||||||||||||||||||||||
| Adjusted EBITDAaL | € | 346.7 | € | 328.6 | 5.5 | % | 5.5 | % | € | 952.9 | € | 947.7 | 0.5 | % | (2.4 | %) | |||||||||||||||||||||||||||||||
| Adjusted EBITDA less P&E Additions | € | 139.7 | € | 166.9 | (16.3 | %) | (16.3 | %) | € | 395.8 | € | 501.7 | (21.1 | %) | (21.5 | %) | |||||||||||||||||||||||||||||||
(i)Our categorization of revenue for both the 2024 and 2023 periods has been updated to align with Liberty Global's presentation.
6
The following table provides a reconciliation of net profit to Adjusted EBITDA and Adjusted EBITDAaL for the three and nine months ended September 30, 2024 and 2023:
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| in millions, except % amounts | |||||||||||||||||||||||
| Net profit (loss) | € | (15.1) | € | 439.2 | € | 66.1 | € | 427.2 | |||||||||||||||
| Income tax expense (benefit) | (9.4) | (22.8) | 38.9 | 116.7 | |||||||||||||||||||
| Share of the result of equity accounted investees | 0.3 | 0.7 | — | 3.0 | |||||||||||||||||||
| Impairment of investments in and/or loans to equity accounted investees | 0.9 | — | 1.4 | — | |||||||||||||||||||
| Remeasurement to fair value of pre-existing interest in an acquiree | (0.6) | (0.1) | (1.3) | (2.0) | |||||||||||||||||||
| Gain on disposal of assets/liabilities related to a subsidiary or a joint venture | — | (346.1) | — | (347.0) | |||||||||||||||||||
| Net finance expense | 181.6 | 47.6 | 254.3 | 182.3 | |||||||||||||||||||
| Depreciation, amortization, impairment and gain on disposal of assets | 193.4 | 221.8 | 604.2 | 612.0 | |||||||||||||||||||
| EBITDA | 351.1 | 340.3 | 963.6 | 992.2 | |||||||||||||||||||
| Share based compensation | 5.7 | 2.4 | 24.1 | 15.0 | |||||||||||||||||||
| Operating charges related to acquisitions or divestitures | 0.4 | 5.5 | 1.6 | 12.9 | |||||||||||||||||||
| Restructuring charges | 3.2 | 0.5 | 3.4 | 5.2 | |||||||||||||||||||
| Measurement period adjustments related to business acquisitions | (0.5) | (2.0) | (0.5) | (1.6) | |||||||||||||||||||
Related-party fees and allocations3 | 6.1 | — | 18.3 | — | |||||||||||||||||||
| Adjusted EBITDA | 366.0 | 346.7 | 1,010.5 | 1,023.7 | |||||||||||||||||||
| Depreciation on assets under leases | (11.3) | (10.1) | (33.4) | (52.8) | |||||||||||||||||||
| Interest expense on leases | (8.0) | (8.0) | (24.2) | (23.2) | |||||||||||||||||||
| Adjusted EBITDAaL | € | 346.7 | € | 328.6 | € | 952.9 | € | 947.7 | |||||||||||||||
| Adjusted EBITDA margin | 51.2% | 48.7% | 47.7% | 48.3% | |||||||||||||||||||
| Adjusted EBITDAaL margin | 48.5% | 46.2% | 45.0% | 44.7% | |||||||||||||||||||
| Net profit (loss) margin | (2.1)% | 61.7% | 3.1% | 20.2% | |||||||||||||||||||
7
The following table provides a reconciliation net cash from operating activities to Adjusted Free Cash Flow for the three and nine months ended September 30, 2024 and 2023:
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| in millions | |||||||||||||||||||||||
| Net cash from operating activities | € | 238.7 | € | 266.5 | € | 740.9 | € | 741.0 | |||||||||||||||
| Operating-related vendor financing additions | 109.2 | 105.9 | 265.2 | 241.6 | |||||||||||||||||||
| Purchases of property and equipment | (105.6) | (92.9) | (273.5) | (250.2) | |||||||||||||||||||
| Purchases of intangibles | (79.9) | (72.5) | (220.6) | (194.1) | |||||||||||||||||||
| Principal payments on operating-related vendor financing | (108.1) | (113.2) | (254.9) | (284.7) | |||||||||||||||||||
| Principal payments on capital-related vendor financing | (17.1) | (18.1) | (59.3) | (54.9) | |||||||||||||||||||
| Principal payments on leases (excluding network-related leases assumed in acquisitions) | (11.8) | (10.1) | (34.1) | (30.6) | |||||||||||||||||||
| Adjusted Free Cash Flow | € | 25.4 | € | 65.6 | € | 163.7 | € | 168.1 | |||||||||||||||
8
The following table details the categories of our property and equipment additions and reconciles those additions to the capital expenditures that we present in our consolidated statements of cash flows:
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| in millions, except % amounts | |||||||||||||||||||||||
| Customer premises equipment | € | 41.5 | € | 49.5 | € | 113.9 | € | 129.7 | |||||||||||||||
| Network growth and upgrades | 82.1 | 43.6 | 199.7 | 114.9 | |||||||||||||||||||
| Products and services | 32.6 | 39.4 | 94.5 | 103.7 | |||||||||||||||||||
| Other | 71.4 | 52.2 | 233.9 | 193.1 | |||||||||||||||||||
| Property and equipment additions | 227.6 | 184.7 | 642.0 | 541.4 | |||||||||||||||||||
| Assets acquired under capital-related vendor financing arrangements | (18.7) | (19.4) | (60.5) | (81.8) | |||||||||||||||||||
| Assets acquired under lease arrangements | (7.0) | (4.6) | (31.7) | (34.8) | |||||||||||||||||||
| Changes in current liabilities related to capital expenditures (including related-party amounts) | (16.4) | 4.7 | (55.7) | 19.5 | |||||||||||||||||||
Total capital expenditures4 | € | 185.5 | € | 165.4 | € | 494.1 | € | 444.3 | |||||||||||||||
| Property and equipment additions as a percentage of revenue | 31.9% | 25.9% | 30.3% | 25.6% | |||||||||||||||||||
| Adjusted EBITDA less P&E Additions | |||||||||||||||||||||||
| Adjusted EBITDA | € | 366.0 | € | 346.7 | € | 1,010.5 | € | 1,023.7 | |||||||||||||||
| Property and equipment additions | 227.6 | 184.7 | 642.0 | 541.4 | |||||||||||||||||||
| Recognition of football broadcasting rights | 5.7 | (0.3) | 4.4 | 0.6 | |||||||||||||||||||
| Recognition of certain lease-related capital additions | (7.0) | (4.6) | (31.7) | (20.0) | |||||||||||||||||||
| P&E Additions excluding the recognition of football broadcasting rights, mobile spectrum licenses and certain lease-related capital additions | 226.3 | 179.8 | 614.7 | 522.0 | |||||||||||||||||||
| Adjusted EBITDA less P&E Additions | € | 139.7 | € | 166.9 | € | 395.8 | € | 501.7 | |||||||||||||||
| P&E Additions excluding the recognition of football broadcasting rights, mobile spectrum licenses and certain lease-related capital additions as a percentage of revenue | 31.7% | 25.3% | 29.0% | 24.6% | |||||||||||||||||||
9
Third-Party Debt, Lease Obligations and Cash and Cash Equivalents
The following table details our consolidated third-party debt, lease obligations and cash and cash equivalents. The borrowing currency figures reported below reflect the principal amount of the debt instrument in the borrowing currency, while the euro equivalent figures include interest accrued on the respective obligations.
| September 30, | June 30, | |||||||||||||||||||
| 2024 | 2024 | |||||||||||||||||||
| Borrowing currency | € equivalent | |||||||||||||||||||
in millions | ||||||||||||||||||||
| 2024 Amended Senior Credit Facility | ||||||||||||||||||||
| Term Loan AR (Term SOFR + 2.00%) USD due 2028 | $ | 2,295.0 | € | 2,062.0 | € | 2,145.1 | ||||||||||||||
Term Loan AQ (EURIBOR + 2.25%) EUR due 2029 | € | 1,110.0 | 1,112.6 | 1,112.5 | ||||||||||||||||
| Term Loan AT1 (EURIBOR + 3.00%) EUR due 2028 | € | 890.0 | 892.4 | 892.3 | ||||||||||||||||
| €570.0 million Revolving Credit Facility B (EURIBOR + 2.25%) due 2029 | — | — | ||||||||||||||||||
| Total Senior Credit Facility | 4,067.0 | 4,149.9 | ||||||||||||||||||
| Senior Secured Notes | ||||||||||||||||||||
| 5.50% USD Senior Secured Notes due 2028 | $ | 1,000.0 | 908.8 | 958.2 | ||||||||||||||||
| 3.50% EUR Senior Secured Notes due 2028 | € | 540.0 | 543.9 | 548.7 | ||||||||||||||||
| Total Senior Secured Notes | 1,452.7 | 1,506.9 | ||||||||||||||||||
| Other | ||||||||||||||||||||
| Lease obligations | 628.5 | 633.4 | ||||||||||||||||||
| Mobile spectrum | 386.3 | 383.4 | ||||||||||||||||||
| Vendor financing | 361.5 | 360.3 | ||||||||||||||||||
| Other debt | 44.6 | 45.4 | ||||||||||||||||||
| €20.0 million Revolving Credit Facility (EURIBOR + 2.25%) due 2026 | — | — | ||||||||||||||||||
| €25.0 million Overdraft Facility (EURIBOR + 1.60%) due 2025 | — | — | ||||||||||||||||||
| Total third-party debt and lease obligations | 6,940.6 | 7,079.3 | ||||||||||||||||||
| Less: deferred financing fees | (18.6) | (20.0) | ||||||||||||||||||
| Total carrying amount of third-party debt and lease obligations | 6,922.0 | 7,059.3 | ||||||||||||||||||
| Less: cash and cash equivalents | 961.0 | 954.1 | ||||||||||||||||||
Net carrying amount of third-party debt and lease obligations5 | € | 5,961.0 | € | 6,105.2 | ||||||||||||||||
| Exchange rate ($ to €) | 1.1149 | 1.0716 | ||||||||||||||||||
10
Covenant Debt Information
The following table reconciles our consolidated third-party debt to the total covenant amount of third-party gross and net debt and includes information regarding the projected principal-related cash flows of our cross-currency derivative instruments. The euro equivalents presented below are based on exchange rates that were in effect as of September 30, 2024 and June 30, 2024. These amounts are presented for illustrative purposes only and will likely differ from the actual cash payments or receipts in future periods.
| September 30, | June 30, | ||||||||||
| 2024 | 2024 | ||||||||||
in millions | |||||||||||
Total third-party debt and lease obligations (€ equivalent) | € | 6,940.6 | € | 7,079.3 | |||||||
| Lease obligations | (628.5) | (633.4) | |||||||||
Mobile spectrum | (386.3) | (383.4) | |||||||||
| Vendor financing | (361.5) | (360.3) | |||||||||
| Other debt | (44.6) | (45.4) | |||||||||
| Accrued interest on term loans and senior secured notes | (21.7) | (39.7) | |||||||||
| Credit Facility excluded amount | (400.0) | (400.0) | |||||||||
| Projected principal-related cash payments (receipts) associated with our cross-currency derivative instruments | (33.7) | (152.8) | |||||||||
Total covenant amount of third-party gross debt | 5,064.3 | 5,064.3 | |||||||||
Less: cash and cash equivalents6 | 954.6 | 946.4 | |||||||||
Total covenant amount of third-party net debt | € | 4,109.7 | € | 4,117.9 | |||||||
11
Forward-Looking Statements
Various statements contained in this document constitute “forward-looking statements” as that term is defined under the U.S. Private Securities Litigation Reform Act of 1995. Words like “believe,” “anticipate,” “should,” “intend,” “plan,” “will,” “expects,” “estimates,” “projects,” “positioned,” “strategy,” and similar expressions identify these forward-looking statements related to our financial and operational outlook; future growth prospects; strategies; product, network and technology launches and expansion and the anticipated impact of acquisitions on our combined operations and financial performance, which involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements or industry results to be materially different from those contemplated, projected, forecasted, estimated or budgeted whether expressed or implied, by these forward-looking statements. These factors include: potential adverse developments with respect to our liquidity or results of operations; potential adverse competitive, economic or regulatory developments, our significant debt payments and other contractual commitments; our ability to fund and execute our business plan; our 2024 financial guidance; expectations with respect to the cost of energy and inflation; our ability to generate cash sufficient to service our debt; interest rate and currency exchange rate fluctuations; the impact of new business opportunities requiring significant up-front investments, including the continuing rollout of fiber in Belgium through Wyre; expectations with respect to our anticipated broadband speed capabilities across our footprint and the technologies to be used; our ability to attract and retain customers and increase our overall market penetration, including the anticipated launch of certain FMC offerings in Wallonia in 2024 and the anticipated timing and benefits to be derived therefrom; our ability to compete against other communications and content distribution businesses, including an intensifying competitive landscape due to the entry of new telecommunications operators as well as the availability of attractive programming and the costs associated with such programming; expectations with respect to our B2B growth; expectations regarding the recovery of our media business; our ability to maintain contracts that are critical to our operations; our ability to respond adequately to technological developments; our ability to develop and maintain back-up for our critical systems; our ability to continue to design networks, install facilities, obtain and maintain any required governmental licenses or approvals and finance construction and development, in a timely manner at reasonable costs and on satisfactory terms and conditions; our ability to have an impact upon, or to respond effectively to, new or modified laws or regulations; the strength of our and our affiliates’ respective balance sheets (including cash and liquidity position); the amount and tenor of our third-party debt and anticipated borrowing capacity and our ability to make value-accretive investments. We assume no obligation to update these forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.
Contact Information
| Telenet Investor Relations: | Telenet Press & Media Relations: | ||||||||||
| Rob Goyens | +32 15 333 054 | Stefan Coenjaerts | +32 15 335 006 | ||||||||
| Liberty Global Investor Relations: | Liberty Global Corporate Communications: | ||||||||||
| Michael Bishop | +44 20 8483 6246 | Bill Myers | +1 303 220 6686 | ||||||||
| Matt Beake | +44 20 8483 6428 | ||||||||||
About Telenet
About Telenet – As a provider of entertainment and telecommunication services in Belgium and Luxembourg, Telenet is always looking for the perfect experience in the digital world for its customers. Under the brand names Telenet and Eltrona, the company provides digital television, broadband, fixed and mobile telephony services to residential customers in Flanders, Brussels and Luxembourg. Under the brand name BASE, it supplies digital television, broadband and mobile telephony services in Belgium. The Telenet Business department serves the business market in Belgium and Luxembourg with connectivity, hosting and security solutions.Telenet also owns 67% of Wyre, an infrastructure company, responsible for developing the fiber-optic network of the future and owns Telenet holding’s former HFC network. More than 3,000 employees have one aim in mind: making living and working easier and more pleasant. Telenet is a 100% owned subsidiary of Liberty Global. Additional information on Telenet and its products can be obtained from the the Company’s website http://www.telenet.be.
About Liberty Global – Liberty Global is a world leader in converged broadband, video and mobile communications services. It delivers next-generation products through advanced fiber and 5G networks, and currently provides over 85 million* connections across Europe. Liberty Global's businesses operate under some of the best-known consumer brands, including Sunrise in Switzerland, Telenet in Belgium, Virgin Media in Ireland, UPC in Slovakia, Virgin Media-O2 in the U.K. and VodafoneZiggo in The Netherlands. Liberty Global, through its global investment arm, Liberty Global Ventures, has a portfolio of more than 75 companies and funds across the content, technology and infrastructure industries, including stakes in companies like ITV, Televisa Univision, Plume, AtlasEdge and the Formula E racing series.
* Represents aggregate consolidated and 50% owned non-consolidated fixed and mobile subscribers. Includes wholesale mobile connections of the VMO2 JV and B2B fixed subscribers of the VodafoneZiggo JV.
12
Selected Operating Data & Subscriber Variance Table — As of and for the quarter ended September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Homes Passed | Fixed-Line Customer Relationships | Total RGUs | Internet Subscribers | Video Subscribers | Telephony Subscribers | Total Mobile Subscribers | |||||||||||||||||||||||||||||||||||||||||
| Operating : | |||||||||||||||||||||||||||||||||||||||||||||||
Belgium | 4,004,700 | 1,923,300 | 4,122,800 | 1,696,900 | 1,563,800 | 862,100 | 2,878,200 | ||||||||||||||||||||||||||||||||||||||||
| Luxembourg | 153,100 | 48,500 | 65,900 | 18,700 | 39,200 | 8,000 | 2,400 | ||||||||||||||||||||||||||||||||||||||||
| Telenet Group | 4,157,800 | 1,971,800 | 4,188,700 | 1,715,600 | 1,603,000 | 870,100 | 2,880,600 | ||||||||||||||||||||||||||||||||||||||||
Q3 Organic Subscriber Variance: | |||||||||||||||||||||||||||||||||||||||||||||||
Belgium | 23,300 | (8,600) | (42,500) | (4,300) | (16,400) | (21,800) | (9,600) | ||||||||||||||||||||||||||||||||||||||||
| Luxembourg | — | 300 | (100) | 300 | — | (400) | 100 | ||||||||||||||||||||||||||||||||||||||||
| Telenet Group | 23,300 | (8,300) | (42,600) | (4,000) | (16,400) | (22,200) | (9,500) | ||||||||||||||||||||||||||||||||||||||||
Q3 Adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
Belgium(i) | (67,900) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
| Luxembourg | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
| Total adjustments | (67,900) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Selected Operating Data — As of September 30, 2024 | |||||||||||||||||
| Prepaid Mobile Subscribers | Postpaid Mobile Subscribers | Total Mobile Subscribers | |||||||||||||||
Total Mobile Subscribers | |||||||||||||||||
Belgium | 203,800 | 2,674,400 | 2,878,200 | ||||||||||||||
| Luxembourg | — | 2,400 | 2,400 | ||||||||||||||
| Telenet Group | 203,800 | 2,676,800 | 2,880,600 | ||||||||||||||
September 30, 2024 vs. June 30, 2024 | |||||||||||||||||
| Prepaid Mobile Subscribers | Postpaid Mobile Subscribers | Total Mobile Subscribers | |||||||||||||||
Q3 Organic Mobile Subscriber Variance | |||||||||||||||||
Belgium | (10,300) | 700 | (9,600) | ||||||||||||||
| Luxembourg | — | 100 | 100 | ||||||||||||||
| Telenet Group | (10,300) | 800 | (9,500) | ||||||||||||||
(i) Represents the aggregate effect of adjustments to correct the overstatement of our June 30, 2024 reported Homes Passed.
General Notes to Tables:
Telenet provides broadband internet, telephony, data, video or other B2B services. Certain of our B2B revenue is derived from SOHO subscribers that pay a premium price to receive enhanced service levels along with internet, video or telephony services that are the same or similar to the mass marketed products offered to our residential subscribers. All mass marketed products provided to SOHOs, whether or not accompanied by enhanced service levels and/or premium prices, are included in the respective RGU and customer counts of our broadband communications operations, with only those services provided at premium prices considered to be “SOHO RGUs” or “SOHO customers”. To the extent our existing customers upgrade from a residential product offering to a SOHO product offering, the number of SOHO RGUs or SOHO customers will increase, but there is no impact to our total RGU or customer counts. With the exception of our B2B SOHO subscribers and mobile subscribers at medium and large enterprises, we generally do not count customers of B2B services as customers or RGUs for external reporting purposes.
13
Footnotes
1Organic figures exclude the customer relationships and subscribers of acquired entities at the date of acquisition and other non-organic adjustments, but include the impact of changes in customers or subscribers from the date of acquisition. All customer relationship and subscriber additions or losses refer to net organic changes, unless otherwise noted
2Rebased growth rates, which are non-GAAP measures, are presented as a basis for assessing growth on a comparable basis. For purposes of calculating rebased growth rates for all businesses that we owned during 2024, we have adjusted our historical revenue, Adjusted EBITDA, Adjusted EBITDAaL and Adjusted EBITDA less P&E Additions for the three and nine months ended September 30, 2023 to include the pre-acquisition revenue, Adjusted EBITDA, Adjusted EBITDAaL and P&E Additions to the same extent these entities are included in our results for the three and nine months ended September 30, 2024. Investors should view rebased growth as a supplement to, and not a substitute for, EU IFRS measures of performance. For further information on the calculation of rebased growth rates, see the discussion in Revenue and Adjusted EBITDA in Liberty Global’s press release dated October 29, 2024, Liberty Global Reports Q3 2024 Results. The following table provides adjustments made to the 2023 amounts to derive our rebased growth rates:
| Three months ended September 30, 2023 | Nine months ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
| Revenue | Adjusted EBITDA | Adjusted EBITDAaL | Adjusted EBITDA less P&E Additions | Revenue | Adjusted EBITDA | Adjusted EBITDAaL | Adjusted EBITDA less P&E Additions | ||||||||||||||||||||||||||||||||||||||||
| in millions | |||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions(i) | € | 0.2 | € | — | € | — | € | — | € | 5.7 | € | 2.4 | € | 28.2 | € | 2.4 | |||||||||||||||||||||||||||||||
______________________
(i)For purposes of calculating rebased growth rates, we have adjusted these historical metrics to the extent they are impacted by the Wyre Transaction with Fluvius on July 1, 2023, creating a new infrastructure company.
3From Q1 2024, Adjusted EBITDA excludes related-party fees and allocations. These amounts, which are based on our company’s estimated share of the applicable costs (including personnel-related and other costs associated with the services provided) incurred by Liberty Global subsidiaries, represent the aggregate net effect of charges between our company and various other Liberty Global subsidiaries that are outside of our company. These charges generally relate to management, finance, legal and other services that support our company’s operations.
4The capital expenditures that we report in our combined statements of cash flows do not include amounts that are financed under vendor financing or lease arrangements. Instead, these expenditures are reflected as non-cash additions to our property and equipment when the underlying assets are delivered, and as repayments of debt when the related principal is repaid.
5Net third-party debt including lease obligations is not a defined term under IFRS and therefore may not be comparable with other similarly titled measures reported by other companies.
6The cash and cash equivalents used in the calculation of our Net Covenant Leverage differs from the cash and cash equivalents used in the calculation of our Net Total Leverage as the former only includes the cash and cash equivalents within Telenet’s restricted banking group, whereas the latter reflects all of Telenet’s cash and cash equivalents as reported in its consolidated statement of financial position.
14
Glossary
Adjusted EBITDA, Adjusted EBITDAaL, Adjusted EBITDA less P&E Additions and Property and Equipment Additions:
•Adjusted EBITDA: We define Adjusted EBITDA as profit (loss) from continuing operations before net income tax benefit (expense), our share of the result of equity-accounted investees, net finance income (expense), depreciation and amortization, share-based compensation, related-party fees and allocations, measurement period and post-measurement period adjustments related to business acquisitions, provisions and provision releases related to significant litigation and impairment, restructuring and other operating items. Other operating items include (a) gains and losses on the disposition of long-lived assets, (b) third-party costs directly associated with successful and unsuccessful acquisitions and dispositions, including legal, advisory and due diligence fees, as applicable, and (c) other acquisition-related items, such as gains and losses on the settlement of contingent consideration. We believe our consolidated Adjusted EBITDA measure, which is a non-GAAP measure, is useful to investors because it is one of the bases for comparing our performance with the performance of other companies in the same or similar industries, although our measure may not be directly comparable to similar measures used by other public companies. Adjusted EBITDA should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, the most directly comparable EU IFRS measure of income included in our condensed consolidated statements of profit or loss.
•Adjusted EBITDA after leases (Adjusted EBITDAaL): Adjusted EBITDAaL is the primary measure used by our chief operating decision maker to evaluate segment operating performance and is also a key factor that is used by our internal decision makers to (i) determine how to allocate resources to segments and (ii) evaluate the effectiveness of our management for purposes of annual and other incentive compensation plans. We define Adjusted EBITDAaL as Adjusted EBITDA as further adjusted to include finance lease related depreciation and interest expense. Our internal decision makers believe Adjusted EBITDAaL is a meaningful measure because it represents a transparent view of our recurring operating performance that includes recurring lease expenses necessary to operate our business. We believe Adjusted EBITDAaL, which is a non-GAAP measure, is useful to investors because it is one of the bases for comparing our performance with the performance of other companies in the same or similar industries, although our measure may not be directly comparable to similar measures used by other public companies. Adjusted EBITDAaL should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, the most directly comparable EU IFRS measure of income included in our condensed consolidated statements of profit or loss.
•Adjusted EBITDA less P&E Additions: We define Adjusted EBITDA less P&E Additions, which is a non-GAAP measure, as Adjusted EBITDA less property and equipment additions on an accrual basis. For this purpose, property and equipment additions excludes the recognition of (i) football broadcasting rights, (ii) mobile spectrum licenses and (iii) certain lease related capital additions. Adjusted EBITDA less P&E Additions is a meaningful measure because it provides (i) a transparent view of Adjusted EBITDA that remains after our capital spend, which we believe is important to take into account when evaluating our overall performance, and (ii) a comparable view of our performance relative to other telecommunications companies. Our Adjusted EBITDA less P&E Additions measure may differ from how other companies define and apply their definition of similar measures. Adjusted EBITDA less P&E Additions should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, the most directly comparable EU IFRS measure of income included in our condensed consolidated statements of profit or loss.
•Property & Equipment Additions (P&E Additions): P&E Additions includes capital expenditures on an accrual basis, amounts financed under vendor financing or finance lease arrangements and other non-cash additions.
Adjusted Free Cash Flow: We define Adjusted Free Cash Flow (Adjusted FCF) as net cash provided by the our operating activities, plus operating-related vendor financed expenses (which represents an increase in the period to our actual cash available as a result of extending vendor payment terms beyond normal payment terms, which are typically 90 days or less, through non-cash financing activities), less (i) cash payments in the period for capital expenditures as reported in our consolidated statement of cash flows, (ii) principal payments on operating- and capital-related amounts financed by vendors and intermediaries (which represents a decrease in the period to our actual cash available as a result of paying amounts to vendors and intermediaries where we previously had extended vendor payments beyond the normal payment terms), and (iii) principal payments on leases (which represents a decrease in the period to our actual cash available) each as reported in our consolidated statements of cash flows. We believe our presentation of Adjusted FCF, which is a non-GAAP measure, provides useful information to our investors because this measure can be used to gauge our ability to (i) service debt and (ii) fund new investment opportunities after consideration of all actual cash payments related to working capital activities and expenses that are capital in nature whether paid inside normal vendor payment terms or paid later outside normal vendor payment terms (in which case we typically pay in less than 365 days). Adjusted FCF should not be understood to represent our ability to fund discretionary amounts, as we have various mandatory and contractual obligations, including debt repayments, that are not deducted to arrive at these amounts. Investors should view Adjusted FCF as a supplement to, and not a substitute for EU IFRS measures of liquidity included in our consolidated statements of cash flows. Further, our Adjusted FCF may differ from how other companies define and apply their definition of Adjusted FCF.
Average Revenue Per Unit: Average Revenue Per Unit (ARPU) is the average monthly subscription revenue per average fixed customer relationship or mobile subscriber, as applicable. ARPU per average fixed-line customer relationship is calculated by dividing the average monthly subscription revenue from residential fixed and small or home office (SOHO) services by the average number of fixed-line customer relationships for the period. ARPU per average mobile subscriber is calculated by dividing mobile subscription revenue for the indicated period by the average number of mobile subscribers for the period. ARPU per RGU (as defined below) refers to average monthly revenue per average RGU, which is calculated by dividing the average monthly subscription revenue from residential and SOHO services for the indicated period, by the average number of the applicable RGUs for the period. Unless otherwise noted, ARPU in this release is considered to be ARPU per average fixed customer relationship or mobile subscriber, as applicable.
ARPU per Mobile Subscriber: Our ARPU per mobile subscriber calculation that excludes interconnect revenue refers to the average monthly mobile subscription revenue per average mobile subscriber and is calculated by dividing the average monthly mobile subscription revenue (excluding handset sales and late fees) for the indicated period, by the average of the opening and closing balances of mobile subscribers in
15
service for the period. Our ARPU per mobile subscriber calculation that includes interconnect revenue increases the numerator in the above-described calculation by the amount of mobile interconnect revenue during the period.
Blended fully-swapped debt borrowing cost: The weighted average interest rate on our aggregate variable- and fixed-rate indebtedness (excluding leases and including vendor financing obligations), including the effects of derivative instruments, original issue premiums or discounts and commitment fees, but excluding the impact of financing costs. The weighted average interest rate calculation includes principal amounts outstanding associated with all of our secured and unsecured borrowings.
Business-to-Business (B2B): Our B2B revenue includes the revenue generated by commercial and regulated wholesale customers in addition to the revenue from large enterprise customers, small and medium-sized companies and SOHO customers.
Customer Churn: The rate at which customers relinquish their subscriptions. The annual rolling average basis is calculated by dividing the number of disconnects during the preceding 12 months by the average number of customer relationships. For the purpose of computing churn, a disconnect is deemed to have occurred if the customer no longer receives any level of service from us and is required to return our equipment. A partial product downgrade, typically used to encourage customers to pay an outstanding bill and avoid complete service disconnection, is not considered to be disconnected for purposes of our churn calculations. Customers who move within our footprint and upgrades and downgrades between services are also excluded from the disconnect figures used in the churn calculation.
Fixed-Line Customer Relationships: The number of customers who receive at least one of our internet, video or telephony services that we count as RGUs, without regard to which or to how many services they subscribe. Fixed-Line Customer Relationships generally are counted on a unique premises basis. Accordingly, if an individual receives our services in two premises (e.g., a primary home and a vacation home), that individual generally will count as two Fixed-Line Customer Relationships. We exclude mobile-only customers from Fixed-Line Customer Relationships.
Fixed-Mobile Convergence: Fixed-mobile convergence (FMC) penetration represents the number of customers who subscribe to both a fixed broadband internet service and postpaid mobile telephony service, divided by the total number of customers who subscribe to our fixed broadband internet service.
Homes Passed: Homes, residential multiple dwelling units or commercial units that can be connected to our networks without materially extending the distribution plant. Certain of our Homes Passed counts are based on census data that can change based on either revisions to the data or from new census results.
Internet Subscriber: A home, residential multiple dwelling unit or commercial unit that receives internet services over our networks, or that we service through a partner network.
Mobile Subscriber Count: For residential and business subscribers, the number of active subscriber identification module (SIM) cards in service rather than services provided. For example, if a mobile subscriber has both a data and voice plan on a smartphone this would equate to one mobile subscriber. Alternatively, a subscriber who has a voice and data plan for a mobile handset and a data plan for a laptop would be counted as two mobile subscribers. Customers who do not pay a recurring monthly fee are excluded from our mobile telephony subscriber counts after periods of inactivity ranging from 30 to 90 days, based on industry standards within the respective country. In a number of countries, our mobile subscribers receive mobile services pursuant to prepaid contracts.
Net Total Leverage: Net Total Leverage is defined as the sum of loans and borrowings under current and non-current liabilities (excluding lease-related liabilities) minus cash and cash equivalents (Net Total Debt), as recorded in our statement of financial position, divided by the last two quarters' Consolidated Annualized Adjusted EBITDAaL. In our statement of financial position, our USD-denominated debt has been converted into EUR using the September 30, 2024 EUR/USD exchange rate. As we have entered into several derivative transactions to hedge both the underlying floating interest rate and exchange risks, the EUR-equivalent hedged amounts were €2,041.5 million (USD 2,295.0 million Term Loan AR) and €882.8 million (USD 1.0 billion Senior Secured Notes due 2028), respectively. For the calculation of our net leverage ratio, we use the EUR-equivalent hedged amounts given the underlying economic risk exposure. Net total leverage is a non-GAAP measure.
Net Covenant Leverage: Net Covenant Leverage is calculated as per the 2024 Amended Senior Credit Facility definition, using Net Total Debt (using the €-equivalent hedged amounts for its USD-denominated debt as explained above), excluding (i) subordinated shareholder loans, (ii) lease obligations, (iii) outstanding debt related to mobile spectrum licenses, (iv) any vendor financing-related liabilities, (v) cash and cash equivalents outside of Telenet’s restricted banking group, and including (vi) the Credit Facility Excluded Amount (which is the greater of (a) €400.0 million and (b) 0.25x Consolidated Annualized Adjusted EBITDA), divided by last two quarters’ Consolidated Annualized Adjusted EBITDA.as defined under our Senior Credit Facility Agreement.
Revenue Generating Unit: A Revenue Generating Unit (RGU) is separately an Internet Subscriber, Video Subscriber or Telephony Subscriber. A home, residential multiple dwelling unit, or commercial unit may contain one or more RGUs. For example, if a residential customer subscribed to our broadband internet service, video service and fixed-line telephony service, the customer would constitute three RGUs. Total RGUs is the sum of Internet, Video and Telephony Subscribers. RGUs generally are counted on a unique premises basis such that a given premise does not count as more than one RGU for any given service. On the other hand, if an individual receives one of our services in two premises (e.g., a primary home and a vacation home), that individual will count as two RGUs for that service. Each bundled internet, video or telephony service is counted as a separate RGU regardless of the nature of any bundling discount or promotion. Non-paying subscribers are counted as subscribers during their free promotional service period. Some of these subscribers may choose to disconnect after their free service period. Services offered without charge on a long-term basis (e.g., VIP subscribers or free service to employees) generally are not counted as RGUs. We do not include subscriptions to mobile services in our externally reported RGU counts. In this regard, our RGU counts exclude our separately reported postpaid and prepaid mobile subscribers.
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Telephony Subscriber: A home, residential multiple dwelling unit or commercial unit that receives voice services over our networks, or that we service through a partner network. Telephony Subscribers exclude mobile telephony subscribers.
Video Subscriber: A home, residential multiple dwelling unit or commercial unit that receives our video service over our broadband network or through a partner network.
YoY: Year-over-year.
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Select Condensed Consolidated Interim EU IFRS Financial Statements
Telenet Group Holding NV
TELENET GROUP HOLDING NV
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(unaudited)
| September 30, 2024 | December 31, 2023 - restated(i) | ||||||||||
| in millions | |||||||||||
| ASSETS | |||||||||||
| Non-current assets: | |||||||||||
| Property and equipment, net | € | 2,939.3 | € | 2,921.5 | |||||||
| Goodwill | 2,081.6 | 2,077.6 | |||||||||
| Other intangible assets, net | 1,297.0 | 1,288.2 | |||||||||
| Deferred tax assets | 78.6 | 78.1 | |||||||||
| Investments in and loans to equity accounted investees | 54.2 | 48.0 | |||||||||
| Other investments | 8.6 | 8.5 | |||||||||
| Derivative financial instruments | 131.3 | 208.6 | |||||||||
| Other non-current assets | 72.0 | 62.3 | |||||||||
| Total non-current assets | 6,662.6 | 6,692.8 | |||||||||
| Current assets: | |||||||||||
| Inventories | 31.2 | 31.5 | |||||||||
| Trade receivables | 192.0 | 207.5 | |||||||||
| Derivative financial instruments | 125.8 | 181.6 | |||||||||
| Other current assets | 177.5 | 175.2 | |||||||||
| Cash and cash equivalents | 961.0 | 822.5 | |||||||||
| Total current assets | 1,487.5 | 1,418.3 | |||||||||
| Total assets | € | 8,150.1 | € | 8,111.1 | |||||||
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TELENET GROUP HOLDING NV
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION — (Continued)
(unaudited)
| September 30, 2024 | December 31, 2023 - restated(i) | ||||||||||
| in millions | |||||||||||
| EQUITY AND LIABILITIES | |||||||||||
| Equity: | |||||||||||
| Share capital | € | 20.4 | € | 20.4 | |||||||
| Share premium | 80.7 | 80.7 | |||||||||
| Other reserves | 1,764.8 | 1,765.3 | |||||||||
| Retained loss | (2,332.7) | (2,353.7) | |||||||||
| Remeasurements | 7.6 | (0.2) | |||||||||
| Total equity attributable to shareholders of Telenet | (459.2) | (487.5) | |||||||||
| Non-controlling interests | (27.5) | (73.0) | |||||||||
| Total equity | (486.7) | (560.5) | |||||||||
| Non-current liabilities: | |||||||||||
| Loans and borrowings | 6,448.7 | 6,478.1 | |||||||||
| Derivative financial instruments | 47.4 | 44.1 | |||||||||
| Deferred revenue | 2.3 | 1.9 | |||||||||
| Deferred tax liabilities | 283.2 | 304.8 | |||||||||
| Provisions | 21.3 | 21.3 | |||||||||
| Other non-current liabilities | 99.6 | 116.3 | |||||||||
| Total non-current liabilities | 6,902.5 | 6,966.5 | |||||||||
| Current liabilities: | |||||||||||
| Loans and borrowings | 473.3 | 475.2 | |||||||||
| Trade payables | 248.1 | 225.3 | |||||||||
| Accrued expenses and other current liabilities | 600.3 | 499.0 | |||||||||
| Provisions | 99.6 | 95.3 | |||||||||
| Deferred revenue | 107.0 | 118.2 | |||||||||
| Derivative financial instruments | 56.1 | 120.3 | |||||||||
| Current tax liability | 149.9 | 171.8 | |||||||||
| Total current liabilities | 1,734.3 | 1,705.1 | |||||||||
| Total liabilities | 8,636.8 | 8,671.6 | |||||||||
| Total equity and liabilities | € | 8,150.1 | € | 8,111.1 | |||||||
(i)Finalized purchase price allocation for Wyre Transaction: In the course of the six months ended June 30, 2024, we finalized our accounting for the business combination related to the Wyre Transaction (“purchase price allocation”), which resulted in the recognition of fair value adjustments on our (i) property and equipment amounting to €87.9 million, related to the network assets, (ii) other intangible assets of €81.7 million, mainly related to the legal rights or the additional value of having an operational network including all required permits to put cables in the ground and including all contractual relationships with landowners, and (iii) other non-current liabilities (€0.6 million). Together with the deferred tax impact of the above-mentioned adjustments (€42.2 million), goodwill was reduced by €126.8 million. The condensed consolidated statement of financial position as per December 31, 2023 has been restated accordingly. The recognition of the aforementioned fair value adjustments resulted in additional depreciation and amortization expenses (€10.3 million for the three months ended September 30, 2023 and €20.7 million for the year ended December 31, 2023), as well as the deferred tax impact (€2.6 million for the three months ended September 30, 2023 and €5.2 million for the year ended December 31, 2023) from the acquisition date (July 1, 2023) through the close of the respective periods. The condensed consolidated statement of profit and loss and other comprehensive income for for the three months ended September 30, 2023 and the year ended December 31, 2023 and have been restated accordingly. These impacts have been reflected in retained loss (€5.2 million as of September 30, 2023 and €10.4 million as of December 31, 2023) and non-controlling interests (€2.5 million as of September 30, 2023 and €5.1 million as of December 31, 2023).
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TELENET GROUP HOLDING NV
CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
(unaudited)
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2024 | 2023(i) | 2024 | 2023(i) | ||||||||||||||||||||
| in millions | |||||||||||||||||||||||
| Revenue | € | 714.3 | € | 712.0 | € | 2,118.1 | € | 2,118.9 | |||||||||||||||
| Cost of services provided | (356.4) | (365.1) | (1,161.7) | (1,133.9) | |||||||||||||||||||
| Gross profit | 357.9 | 346.9 | 956.4 | 985.0 | |||||||||||||||||||
| Selling, general and administrative expenses | (200.2) | (228.4) | (597.0) | (604.8) | |||||||||||||||||||
| Operating profit | 157.7 | 118.5 | 359.4 | 380.2 | |||||||||||||||||||
| Finance income | 128.2 | 144.3 | 90.5 | 131.0 | |||||||||||||||||||
| Interest income, net foreign exchange gain and other finance income | 128.2 | 9.0 | 49.8 | 20.3 | |||||||||||||||||||
| Net gain on derivative financial instruments | — | 135.3 | 40.7 | 110.7 | |||||||||||||||||||
| Finance expense | (309.8) | (191.9) | (344.8) | (313.3) | |||||||||||||||||||
| Interest expense, net foreign exchange loss and other finance expense | (113.1) | (191.9) | (344.8) | (313.3) | |||||||||||||||||||
| Net loss on derivative financial instruments | (196.7) | — | — | — | |||||||||||||||||||
| Net finance expense | (181.6) | (47.6) | (254.3) | (182.3) | |||||||||||||||||||
| Share of the result of equity accounted investees | (0.3) | (0.7) | — | (3.0) | |||||||||||||||||||
| Impairment of investments in and/or loans to equity accounted investees | (0.9) | — | (1.4) | — | |||||||||||||||||||
| Remeasurement to fair value of pre-existing interest in an acquiree | 0.6 | 0.1 | 1.3 | 2.0 | |||||||||||||||||||
| Gain on disposal of assets/liabilities related to a subsidiary or a joint venture | — | 346.1 | — | 347.0 | |||||||||||||||||||
| Profit before income tax | (24.5) | 416.4 | 105.0 | 543.9 | |||||||||||||||||||
| Income tax benefit (expense) | 9.4 | 22.8 | (38.9) | (116.7) | |||||||||||||||||||
| Net profit (loss) | € | (15.1) | € | 439.2 | € | 66.1 | € | 427.2 | |||||||||||||||
| Other comprehensive income for the period, net of taxes: | |||||||||||||||||||||||
| Items that will not be reclassified to profit or loss: | |||||||||||||||||||||||
| Remeasurements of defined benefit liability (asset) | € | 2.7 | € | 2.8 | € | 8.8 | € | 4.2 | |||||||||||||||
| Equity-accounted investees - share of other comprehensive income | — | — | (0.9) | 1.2 | |||||||||||||||||||
| Items that are or may be reclassified subsequently to profit or loss: | |||||||||||||||||||||||
| Foreign operations - foreign currency translation differences | (0.4) | 0.2 | (0.1) | — | |||||||||||||||||||
| Other comprehensive income for the period, net of income tax | 2.3 | 3.0 | 7.8 | 5.4 | |||||||||||||||||||
| Total comprehensive income (loss) for the period | € | (12.8) | € | 442.2 | € | 73.9 | € | 432.6 | |||||||||||||||
| Net profit (loss) attributable to: | |||||||||||||||||||||||
| Shareholders of Telenet | € | (34.9) | € | 430.3 | € | 21.0 | € | 419.0 | |||||||||||||||
| Non-controlling interests | 19.8 | 8.9 | 45.1 | 8.2 | |||||||||||||||||||
| € | (15.1) | € | 439.2 | € | 66.1 | € | 427.2 | ||||||||||||||||
| Total comprehensive income (loss) for the period, attributable to: | |||||||||||||||||||||||
| Shareholders of Telenet | € | (32.4) | € | 433.2 | € | 28.8 | € | 424.4 | |||||||||||||||
| Non-controlling interests | 19.6 | 9.0 | 45.1 | 8.2 | |||||||||||||||||||
| € | (12.8) | € | 442.2 | € | 73.9 | € | 432.6 | ||||||||||||||||
(i) Includes impacts of finalization of Wyre purchase price allocation, see note on statement of financial position.
20
TELENET GROUP HOLDING NV
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| in millions | |||||||||||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||||||||
| Net profit (loss) | € | (15.1) | € | 439.2 | € | 66.1 | € | 427.2 | |||||||||||||||
| Adjustments to reconcile net profit to net cash provided by operating activities: | |||||||||||||||||||||||
| Depreciation, amortization, impairment and restructuring charges | 196.6 | 222.3 | 607.6 | 617.2 | |||||||||||||||||||
| Related-party fees and allocations | 6.1 | — | 18.3 | — | |||||||||||||||||||
| Working capital changes and other non-cash items | (18.8) | 1.3 | 49.6 | 7.1 | |||||||||||||||||||
| Income tax expense (benefit) | (9.4) | (22.8) | 38.9 | 116.7 | |||||||||||||||||||
| Net interest income, foreign exchange gain and other finance income | (128.2) | (9.0) | (49.8) | (20.3) | |||||||||||||||||||
| Net interest expense, foreign exchange loss and other finance expenses | 113.1 | 191.9 | 344.8 | 313.3 | |||||||||||||||||||
| Net loss (gain) on derivative financial instruments | 196.7 | (135.3) | (40.7) | (110.7) | |||||||||||||||||||
| Share in the result of equity accounted investees | 0.3 | 0.7 | — | 3.0 | |||||||||||||||||||
| Remeasurement to fair value of pre-existing interest in an acquiree | (0.6) | (0.1) | (1.3) | (2.0) | |||||||||||||||||||
| Impairment of investments in and/or loans to equity accounted investees | 0.9 | — | 1.4 | — | |||||||||||||||||||
| Gain on disposal of assets/liabilities related to a subsidiary or a joint venture | — | (346.1) | — | (347.0) | |||||||||||||||||||
| Net cash interest paid and cash derivatives | (101.3) | (75.3) | (209.2) | (178.0) | |||||||||||||||||||
| Income taxes paid | (1.6) | (0.3) | (84.8) | (85.5) | |||||||||||||||||||
| Net cash provided by operating activities | € | 238.7 | € | 266.5 | € | 740.9 | € | 741.0 | |||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||||||||
| Purchases of property and equipment | € | (105.6) | € | (92.9) | € | (273.5) | € | (250.2) | |||||||||||||||
| Purchases of intangibles | (79.9) | (72.5) | (220.6) | (194.1) | |||||||||||||||||||
| Acquisitions and disposals of and loans to equity accounted investees | (4.8) | (4.7) | (8.1) | (13.5) | |||||||||||||||||||
| Acquisition of subsidiaries, net of cash acquired | 0.3 | (0.4) | (0.2) | (18.8) | |||||||||||||||||||
| Proceeds from sale of property and equipment | 0.1 | 0.1 | 0.2 | 9.0 | |||||||||||||||||||
| Other investing activities | 0.2 | — | 1.1 | — | |||||||||||||||||||
| Net cash used in investing activities | € | (189.7) | € | (170.4) | € | (501.1) | € | (467.6) | |||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||||||||
| Repayments of loans and borrowings | € | (126.9) | € | (132.6) | € | (322.6) | € | (360.1) | |||||||||||||||
| Proceeds from loans and borrowings | 110.1 | 107.1 | 268.9 | 243.8 | |||||||||||||||||||
| Payments related to capital reductions and dividends | (13.5) | (0.5) | (13.5) | (109.1) | |||||||||||||||||||
| Other financing activities | (11.8) | (12.5) | (34.1) | (37.7) | |||||||||||||||||||
| Net cash used in financing activities | € | (42.1) | € | (38.5) | € | (101.3) | € | (263.1) | |||||||||||||||
| Net increase in cash and cash equivalents | |||||||||||||||||||||||
| Cash and cash equivalents at beginning of period | € | 954.1 | € | 1,017.1 | € | 822.5 | € | 1,064.4 | |||||||||||||||
| Cash and cash equivalents at end of period | 961.0 | 1,074.7 | 961.0 | 1,074.7 | |||||||||||||||||||
| Net cash generated | € | 6.9 | € | 57.6 | € | 138.5 | € | 10.3 | |||||||||||||||
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