By Frances Robinson
BRUSSELS--Belgian cable operator Telenet NV (TNET.BT) confirmed
its outlook for the full year and said net profit rose in the
second quarter, driven in particular by a growing mobile telecoms
business, the company said Tuesday.
"We remain confident on our ability to deliver on our full-year
outlook, while being mindful of the intensely competitive
environment in both fixed and mobile services and the current
macro‐economic backdrop," Chief Executive John Porter said in a
statement.
For the full year, the company expects revenue growth of 10‐11%,
adjusted earnings before interest, taxes, depreciation and
amortization growth of 7‐8%, accrued capital expenditures of 21‐22%
of revenue, and stable free cash flow compared to last year.
Mr. Porter added that the revenue growth rate would be higher in
the first half of the year than the second, as the rapid growth in
the mobile business early this year slows.
Telenet, which is 58% owned by global cable giant Liberty Global
PLC (LBYTA), said that adjusted EBITDA grew by 11% in the second
quarter to 216 million euros ($95 million), yielding a margin of
53%.
Over the same period, net profit rose to EUR71.6 million from
EUR12.8 million a year earlier. Revenue was EUR408 million,
compared to EUR363 million last year.
The company said its mobile business, which it started last
year, is doing well even in Belgium's crowded market. Its peer in
Belgium telecoms company Mobistar SA issued a profit warning
earlier this month.
"The mobile market became much more competitive following a
re‐pricing by all major mobile operators," Telenet said in its
results announcement.
The results were due to be released after the market close
Tuesday. However, they were published after a local TV company sent
a Tweet about them, prompting the Belgian market regulator to
suspend trading in Telenet shares, a company spokesman
confirmed.
-Write to Frances Robinson at frances.robinson@dowjones.com
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