Telenet announces Full Year 2007 results

Monday, February 18th, 2008
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  • Solid operational and financial growth; full year outlook successfully achieved
  • Strong free cash flow progression of 71%
  • Revenue up 15%; EBITDA up 21%, yielding an EBITDA margin of 47.5%

MECHELEN — Telenet Group Holding NV (“Telenet” or the “Company”) (Euronext Brussels: TNET) announces its consolidated results under International Financial Reporting Standards as adopted by the EU (“EU GAAP”) for the twelve months ended December 31, 2007.


Premium TV & iDTV

Subscriber base. As of December 31, 2007 we registered a total of 420,000 subscribers to one or more premium television services, comprising 391,000 iDTV subscribers, 25,000 Prime customers (on the former Canal+ platform, the majority being in the Partner Network region) and 5,000 customers subscribing to premium content on the former UPC Belgium network.

In 2007, we achieved a net increase of 165,000 iDTV subscribers and grew our customer base by 73% compared to the end of 2006. This implies that during 2007, we converted 10% of our total basic television subscribers from analog to digital, which is in line with our long-term target. Our fourth quarter sales of iDTV were particularly boosted by a successful year-end campaign in December, resulting in record quarterly net iDTV additions of 51,000. On December 1, 2007, we launched our High Definition service, including a new HD-set top box – offered as a rental only – alongside a limited, introductory content package of 4 HD-channels. Taking into account the current limited local HD-content, we are satisfied with the initial uptake.

ARPU and revenue trend. During the fourth quarter of 2007, we saw good progress in our video-on-demand transactions, demonstrated by a stronger year-on-year increase in paid transactions (+81%) compared to the year-on-year increase in our iDTV customer base (+73%). In addition, we observed further growth in the share of paying video-on-demand transactions to total transactions compared to previous quarters. The combination of a positive trend in video-on-demand and stable package uptake rates resulted in a flat iDTV ARPU, which was more than double the initial basic cable television ARPU. Total premium television revenue generated by both our iDTV and PayTV customers reached €62.9 million for the full year of 2007, up from €47.3 million for the same period in 2006, an increase of 33% year-on-year.

Basic cable TV

Subscriber base. Subscribers to both basic analog and digital television services reached a total of 1,708,000 at the end of December 2007 compared to 1,604,000 at the end of 2006, comprised of 1,317,000 basic analog subscribers and 391,000 basic digital subscribers.

Adjusted for subscribers acquired with the UPC Belgium network, we experienced a net decrease in our basic cable TV subscriber base of 1.7% during 2007. This decline is in line with our expectations amid competition from other digital television and satellite providers. To a degree, the Brussels area influenced the overall basic TV churn as this footprint contains a more volatile subscriber base, resulting in a natural higher churn compared to the Flanders area.

The impact of this loss in subscribers was more than offset by last year’s increase of the basic TV subscription fee. Total basic TV revenue reported in 2007 was €221.7 million, up by 11% compared to 2006.

400,000 subscribers to iDTV

On January 18, 2007, Telenet announced it has passed the milestone of 400,000 digital television customers.