Telenet Group Holding NV

Earnings Release • Oct 29, 2012

PRESS RELEASE Telenet discloses full year 2013 outlook

The enclosed information constitutes regulated information as defined in the Royal Decree of 14 November 2007 regarding the duties of issuers of financial instruments which have been admitted for trading on a regulated market.

FY 2013 outlook announced on the back of strong operating momentum

Mechelen, October 29, 2012 – Today, Telenet Group Holding NV ("Telenet" or the "Company") (Euronext Brussels: TNET) discloses its outlook for the full year of 2013 considering that its own forecasts deviate from the current analyst consensus.

For the full year 2013, the Company targets revenue growth of "between 10‐11%", driven by further growth in the number of multiple‐play, digital TV, and broadband internet subscribers. In addition, the momentum in Telenet's mobile operations is expected to drive solid incremental growth.

The Company anticipates Adjusted EBITDA to grow "between 7‐8%" for the full year 2013 reflecting a bigger share of mobile revenue which generates a lower margin compared to its fixed operations. The Company will continue to work on further improving efficiency levels and benefit from scale effects as a result of multiple‐play growth.

Telenet forecasts accrued capital expenditures of "between 21‐22% of revenue" for the full year 2013: these are predominantly success‐based, driven by a high proportion of rental set‐top boxes as a result of a further digitalization of Telenet's basic cable TV subscriber base and accrued capital expenditures for customer installations. On top, the Company will continue to invest in its network where appropriate in order to safeguard its competitive positioning and speed leadership.

Finally, the Company anticipates Free Cash Flow for the full year 2013 to remain "stable" as compared to 2012, embedding growth in Net Cash from Operating Activities as well as higher interest expenses following the increased debt level as of August 16, 2012.

	Outlook FY 2013
Revenue growth	10% – 11%
Adjusted EBITDA(1) growth	7% – 8%
Accrued capital expenditures(2)	21% ‐ 22% of revenue
Free Cash Flow(3)	Stable (*)

(*) includes net interest expenses related to €700 million additional facilities as drawn on August 16, 2012.

• (1) EBITDA is defined as profit before net finance expense, income taxes, depreciation, amortization and impairment. Adjusted EBITDA is defined as EBITDA before stock‐based compensation and restructuring charges, and before operating charges or credits related to successful or unsuccessful acquisitions or divestures. Operating charges or credits related to acquisitions or divestures include (i) gains and losses on the disposition of long‐lived assets and (ii) due diligence, legal, advisory and other third‐party costs directly related to the Company's efforts to acquire or divest controlling interests in businesses. Adjusted EBITDA is an additional measure used by management to demonstrate the Company's underlying performance and should not replace the measures in accordance with EU GAAP as an indicator of the Company's performance, but rather should be used in conjunction with the most directly comparable EU GAAP measure.
• (2) Accrued capital expenditures are defined as additions to property, equipment and intangible assets, including additions from capital leases and other financing arrangements, as reported in the Company's consolidated statement of financial position on an accrued basis.

(3) Free Cash Flow is defined as net cash provided by the operating activities of Telenet's continuing operations less (i) purchases of property and equipment and purchases of intangibles of its continuing operations, (ii) principal payments on vendor financing obligations, and (iii) principal payments on capital leases (exclusive of network‐related leases), each as reported in the Company's consolidated statement of cash flows. Free Cash Flow is an additional measure used by management to demonstrate the Company's ability to service debt and fund new investment opportunities and should not replace the measures in accordance with EU GAAP as an indicator of the Company's performance, but rather should be used in conjunction with the most directly comparable EU GAAP measure.

Contacts

Investor Relations & Corporate Communication:	Vincent Bruyneel – vincent.bruyneel@staff.telenet.be – Phone: +32 15 335 696
Investor Relations:	Rob Goyens – rob.goyens@staff.telenet.be – Phone: +32 15 333 054

About Telenet – Telenet is a leading provider of media and telecommunication services. Its business comprises the provision of cable television, high speed internet and fixed and mobile telephony services, primarily to residential customers in Flanders and Brussels. In addition, Telenet offers services to business customers across Belgium under the brand Telenet for Business. Telenet is listed on the Euronext Brussels Stock Exchange under the ticker symbol TNET and is part of the BEL20 stock market index.

Disclaimer

This press release does not constitute an offer to purchase securities of Telenet or its affiliates nor a solicitation by anyone in any jurisdiction in respect thereof. If Telenet decides to proceed with an offer to purchase Telenet securities through a public tender offer, such offer will and can only be made on the basis of an approved prospectus by the FSMA. No action has been taken to enable a public bid in any jurisdiction and no such steps shall be taken prior to Telenet's decision to proceed with a public tender offer. Neither this press release nor any other information in respect of the matters contained herein may be supplied in any jurisdiction where a registration, qualification or any other obligation is in force or would be with regard to the content hereof or thereof. Any failure to comply with these restrictions may constitute a violation of the financial laws and regulations in such jurisdictions. Telenet and its affiliates explicitly decline any liability for breach of these restrictions by any person.

Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995 – 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, dividend policy, future growth prospects, and any other information and statements that are not historical fact. These forward‐looking statements 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 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; our ability to attract and retain customers and increase our overall market penetration; our ability to compete against other communications and content distribution businesses; 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, 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.

For prospective investors in the United Kingdom, a Financial Services Authority authorized entity has not approved this communication relating to the securities for the purposes of section 21 of the Financial Services and Markets Act 2000. This communication is exempt on the basis that it falls within Article 69 (Promotions of securities already admitted to certain markets) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended). Past performance cannot be relied on as a guide to future performance. If you are in any doubt about the investment to which this communication relates, you should consult a person authorized under the Financial Services and Markets Act 2000 who specializes in advising on investing in shares or other investments in or related to corporations.