Earnings Release • Apr 30, 2020
Earnings Release
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Accelerated commercial momentum with 8,100 broadband net additions, our best performance since Q2 2016, driven by improved sales and reduced churn.
Robust financial performance, delivering 994% net profit growth and 4% Adjusted EBITDA growth on a rebased basis.
Well positioned for the future and to navigate through the COVID-19 impacts: reaffirming our 2018-2021 outlook, while modestly adjusting our FY 2020 guidance due to COVID-related impacts.
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. Inside information.
Mechelen, April 30, 2020 – Telenet Group Holding NV ("Telenet" or the "Company") (Euronext Brussels: TNET) announces its unaudited consolidated results under International Financial Reporting Standards as adopted by the European Union ("EU IFRS") for the three months ended March 31, 2020.
Net cash from operating activities, net cash used in investing activities and net cash used in financing activities of €282.5 million, €117.4 million and €129.0 million, respectively, in Q1 2020. Q1 2020 Adjusted Free Cash Flow(5) more than tripled to €83.4 million due to phasing in our cash tax payment and robust Adjusted EBITDA growth. In Q1 2020, we had net payments of €26.3 million under our vendor financing program as compared to a €43.9 million benefit in Q1 2019. Excluding this impact, our Adjusted Free Cash Flow growth would have been even higher.
Operating Free Cash Flow guidance of a 6.5 to 8.0% CAGR(a) over the 2018-2021 period maintained, while modestly adjusting our FY 2020 outlook due to the temporary impacts of the global COVID-19 pandemic (see 3. Outlook for more information). This reflects the anticipated impacts of the current lockdown as of mid-March 2020 and excludes the effects of any additional lock-downs in the second half of the year, which could further affect our operations. It also assumes we will gradually exit the lock-down starting in May with a gradual economic recovery thereafter.
(a) A reconciliation of our Operating Free Cash Flow CAGR for 2018-2021 to a EU IFRS measure is not provided as not all elements of the reconciliation are projected as part of our forecasting process, as certain items may vary significantly from one period to another.
(b) A reconciliation of our Adjusted EBITDA guidance for 2020 to a EU IFRS measure is not provided as not all elements of the reconciliation are projected as part of our forecasting process, as certain items may vary significantly from one period to another.
(c) Other revenue primarily includes (i) interconnection revenue from both our fixed-line and mobile telephony customers, (ii) advertising and production revenue from De Vijver Media NV, which we fully consolidated as of June 3, 2019, (iii) mobile handset sales, including the revenue earned under our "Choose Your Device" programs, (iv) wholesale revenue generated through both our commercial and regulated wholesale businesses, (v) product activation and installation fees and (vi) set-top box sales revenue.
(d) Excluding the recognition of football broadcasting rights and mobile spectrum licenses and excluding the impact from IFRS 16 on our accrued capital expenditures.
(e) A reconciliation of our Operating Free Cash Flow guidance for 2020 to a EU IFRS measure is not provided as not all elements of the reconciliation are projected as part of our forecasting process, as certain items may vary significantly from one period to another.
(f) A reconciliation of our Adjusted Free Cash Flow guidance for 2020 to a EU IFRS measure is not provided as not all elements of the reconciliation are projected as part of our forecasting process, as certain items may vary significantly from one period to another.
(g) Assuming certain payments are made on our current 2G and 3G mobile spectrum licenses in Q4 2020 and the tax payment on our 2019 tax return will not occur until early 2021.
| For the three months ended March 31, | 2020 | 2019 | Change % | |||
|---|---|---|---|---|---|---|
| FINANCIAL HIGHLIGHTS (€ in millions, except per share amounts) | ||||||
| Revenue | 653.0 | 626.0 | 4 % | |||
| Operating profit | 153.2 | 150.9 | 2 % | |||
| Net profit | 153.2 | 14.0 | 994 % | |||
| Net profit margin | 23.5 % | 2.2 % | ||||
| Basic earnings per share | 1.39 | 0.13 | N.M. | |||
| Diluted earnings per share | 1.39 | 0.13 | N.M. | |||
| Adjusted EBITDA (2) | 345.6 | 319.5 | 8 % | |||
| Adjusted EBITDA margin % | 52.9 % | 51.0 % | ||||
| Accrued capital expenditures (excluding the recognition of football broadcasting rights and mobile spectrum licenses)(3) |
172.7 | 131.4 | 31 % | |||
| Accrued capital expenditures as % of revenue (excluding the recognition of football broadcasting rights and mobile spectrum licenses) |
26.4 % | 21.0 % | ||||
| Operating Free Cash Flow (4) | 172.9 | 188.1 | (8)% | |||
| Net cash from operating activities | 282.5 | 165.5 | 71 % | |||
| Net cash used in investing activities | (117.4) | (102.3) | 15 % | |||
| Net cash used in financing activities | (129.0) | (104.2) | 24 % | |||
| Adjusted Free Cash Flow (5) | 83.4 | 19.8 | 321 % | |||
| OPERATIONAL HIGHLIGHTS (Total Services) | ||||||
| Video | 1,852,000 | 1,916,800 | (3)% | |||
| Basic video (6) | 147,400 | 191,400 | (23)% | |||
| Enhanced video (7) | 1,704,600 | 1,725,400 | (1)% | |||
| Broadband internet (8) | 1,672,500 | 1,658,100 | 1 % | |||
| Fixed-line telephony (9) | 1,206,300 | 1,243,200 | (3)% | |||
| Mobile telephony (10) | 2,814,800 | 2,704,800 | 4 % | |||
| Postpaid | 2,387,600 | 2,228,100 | 7 % | |||
| Prepaid | 427,200 | 476,700 | (10)% | |||
| Triple-play customers | 1,106,800 | 1,135,300 | (3)% | |||
| Services per customer relationship (11) | 2.29 | 2.29 | — % | |||
| ARPU per customer relationship (€ / month)(11) (12) | 58.3 | 57.3 | 2 % |
N.M. - Not Meaningful
Commenting on the results, John Porter, Telenet's Chief Executive Officer, stated:
"Before looking back at the first quarter of 2020, I would first like to express my personal and Telenet's overall support to all of our stakeholders and wish them good health in these unprecedented and uncertain times. It goes without saying that COVID-19 is heavily impacting the way we all live and work together. In that respect, we as a company have taken full responsibility from the start to make sure we can foster the wellbeing of our employees, customers, suppliers and the wider community, built around "#samenerdoor/fairefaceensemble".
The majority of our employees are working from home since mid-March and we keep them up to date with a dedicated internal website and regular newsletters. We also decided to temporarily allow employees to take two volunteering working days to help in hospitals and healthcare. In addition, we gave our employees the possibility to donate part of their bonus to DigitalForYouth.be, an NGO which collects laptops for children from underserved communities.
Our purpose is to stay one step ahead in the digital world, connecting people and creating experiences for a better quality of life. That's why we engaged in several community initiatives. We offered free Tadaam routers to the company "Zorabots" which has put 100 robots at the disposal of care homes, connecting elderly people through virtual communications. We opened up our Wi-Free network across our whole footprint allowing pupils without internet access to stay connected with their schools. We supported over 600 schools and social organizations in the first two weeks and extended the initiative towards universities and high schools. In addition, 500 laptops and 500 BASE SIM cards were donated including free entertainment to help overcome isolation in hospitals and elderly care homes.
To enable connectivity at home and on the go for our customers during these times, we doubled the fixed and mobile data allowances at no additional cost for our customers, in addition to providing certain free movies and series. With most of our retail stores closed since mid-March, we are fast changing the way we do CPE swaps and fully re-engineered our home delivery process in less than 72 hours. We launched a special dedicated website telenetsamenerdoor.be/telenetfairefaceensemble.be where Telenet employees share tips & tricks on how to make life and work easier during these times. For our B2B customers, we are focusing on enabling business continuity by extending IPVPN/fibre connections within 24 hours, financial support, double data allowances and free entertainment. We are prioritizing all delivery work to critical sectors such as healthcare. After the big surge in customer care, we launched "How are you?" check-ins with customers to support their urgent connectivity & IT needs.
Against the backdrop of these current exceptional circumstances, I'm pleased with the solid underlying operational performance in Q1, continuing the improved momentum we've seen since the second half of last year. While gross sales have clearly decreased since the closure of our retail stores as of mid-March, this effect was more or less compensated by lower annualized churn. We had a particularly strong quarter in broadband, adding 8,100 net new subscribers and marking our best quarterly performance since Q2 2016. As part of that robust performance, we also noted a return to growth for our residential broadband customer base. We managed to further increase the fixed-mobile convergence rate to 28%, up 8 percentage points compared to the same period last year by adding another 28,400 FMC subscribers. This also drove further robust performance on mobile postpaid net adds with an additional 23,800 for the first quarter 2020. On the entertainment side, we did observe higher churn on our Play Sports subscriber base as all main football championships have been put on hold. To mitigate this, we are including the full Play More catalog for free in the Play Sports package.
As we are already offering 1 gigabit speeds on our HFC network since September last year, I'm proud to see that both our fixed and 4G+ mobile networks are coping seamlessly with the increased voice and data usage, underpinning the fact that our targeted proactive investments inside and outside the home are paying off especially in these days. Fixed data traffic on our gigabit HFC network over the past weeks increased 80%, while we saw the WiFi offloading effect on mobile data traffic with a 20% decrease thanks to the robust inhome WiFi connectivity at our customers' homes.
We took note of the amended CRC draft decision on cable wholesale access rates, which improved versus the previous draft decision due to certain changes to the cost model as laid down in the draft decision that was notified to the European Commission. However, there remains unequal treatment between the Flemish and Walloon regions, which should be adjusted as there's no justification in our view. Also, the proposed cable wholesale access rates still do not yet seem to fully reflect the true costs and would still imply a meaningful step-down from the current rates. Today's exceptional circumstances more than ever underpin the need for highly performing state-of-the-art fixed and mobile networks. Finally, I would like to emphasize that despite today's exceptional circumstances, we remain very well positioned for the future thanks to our leading gigabit HFC and 4G+ converged network infrastructure combined with our value-accretive FMC strategy. Backed by our best-in-class Adjusted Free Cash Flow conversion, our robust liquidity and long-term debt maturity profile of 8.3 years, we remain in a very strong position to drive attractive shareholder value in 2020 and beyond."
"I'm pleased with our robust financial performance in the first quarter and that we have so far managed to navigate through most of the COVID-19 impacts on our financials since mid-March. We generated revenue of €653 million in Q1 2020, which was up 4% year-on-year and included a full quarter contribution from De Vijver Media, which we acquired in June last year. Excluding this inorganic impact, our rebased top line was broadly unchanged compared to the same period of last year. An improved trend in our recurring subscription revenue was almost fully offset by lower business services and other revenue, reflecting certain COVID-19 impacts on our ICT, handset-related and advertising revenue since mid-March.
We once again demonstrated tight cost control in the quarter, with a decrease in our total operating expenses by just over 4% year-on-year on a rebased basis. Hence, our Adusted EBITDA reached €346 million in Q1 2020, up 8% year-on-year and reflecting the aforementioned inorganic impact of the De Vijver Media acquisition. Excluding this inorganic impact, our rebased Adjusted EBITDA increased a solid 4% as the negative impact from the loss of the MEDIALAAN MVNO contract and certain regulatory headwinds was more than offset by (i) lower sales and marketing expenses due to phasing and last year's impact of the SFR customer migration and (ii) continued tight cost control. On a rebased basis, we succeeded in improving our Adjusted EBITDA margin with 220 basis points compared to the same quarter last year to nearly 53%.
In the first quarter, our accrued capital expenditures represented €173 million, which was unchanged year-onyear and equivalent to approximately 26% of revenue in the quarter. Excluding the recognition of the UK Premier League football broadcasting rights in Q1 2019, our accrued capital expenditures increased 31% in Q1 2020 due to (i) the inorganic De Vijver Media acquisition impact, (ii) proactive inventory building to safeguard our supply chain processes during the COVID-19 pandemic and (iii) seasonally higher spending on our IT upgrade program, driving further digital capabilities for the future.
Our Operating Free Cash Flow reached €173 million, representing an 8% decrease year-on-year as solid Adjusted EBITDA growth was more than offset by seasonally higher capital investments in the quarter. Finally, our Adjusted Free Cash Flow in Q1 2020 more than tripled to €83 million due to phasing in our cash tax payment and robust Adjusted EBITDA growth, more than offsetting €26.3 million net payments in Q1 2020 under our vendor financing program.
As John mentioned above, Telenet enjoys a very robust liquidity and debt maturity profile with (i) a cash balance of €138 million at March 31, 2020, (ii) a weighted average maturity of 8.3 years and (iii) no debt amortizations prior to March 2028, excluding short-dated commitments on our vendor financing commitments. Our net total leverage reached 4.0x at March 31, 2020, exactly at the mid-point of our leverage framework as presented during the December 2018 Capital Markets Day. In Q1, we successfully wrapped up our Share Repurchase Program 2020, having repurchased 1.1 million shares for an aggregate amount of €33.5 million. Yesterday, shareholders also approved the cancellation of 814,966 shares and the payment of a final gross dividend of €1.3050 per share, which will be paid on May 6. As such, we continue to execute against our anticipated shareholder remuneration timeline and remain committed to pursue this in the future.
Looking ahead, the impact of the global COVID-19 pandemic on our Q1 2020 financials was relatively limited, but expected to be moderately negative in Q2 2020 and the rest of the year especially given the exposure of our subsidiary De Vijver Media to the more cyclical media and advertising markets. We remain on track to deliver an Operating Free Cash Flow CAGR of 6.5 to 8.0% over the 2018-2021 period (excluding the recognition of football broadcasting rights and mobile spectrum licenses and excluding the impact of IFRS 16, applicable as of January 1, 2019). As for FY 2020, we expect COVID-19 to have a moderately negative, yet temporary, impact on both our revenue and Adjusted EBITDA performance of around 2 percentage points. This reflects the anticipated impacts of the current lock-down as of mid-March 2020 and excludes the effects of any additional lock-downs in the second half of the year, which could further affect our operations. It also assumes we will gradually exit the lock-down starting in May with a gradual economic recovery thereafter. Against this backdrop, we anticipate a top line decline of around 2% on a rebased basis. Excluding our other revenue, which includes (i) interconnection revenue from both our fixed-line and mobile telephony customers, (ii) advertising and production revenue from De Vijver Media NV, which we fully consolidated as of June 3, 2019, (iii) mobile handset sales, including the revenue earned under our "Choose Your Device" programs, (iv) wholesale revenue generated through both our commercial and regulated wholesale businesses, (v) product activation and installation fees and (vi) set-top box sales revenue, we anticipate our revenue for the full year to remain broadly stable compared to 2019, underpinning the resilience of our residential and business connectivity segments. We will continue to control our cost base, making sure we generate operating leverage across the business. As such, we expect our Adjusted EBITDA to contract by around 1% on a rebased basis. Given the robust nature of both our fixed and mobile infrastructure and our demonstrated track record of carefully balancing our future investments, we still expect our Operating Free Cash Flow to grow, more specifically between 1 and 2% on a rebased basis. Finally, we continue to target Adjusted Free Cash Flow of €415.0 - €435.0 million, skewed however towards the lower end of this range. With that, we reconfirm our intention to maintain net total leverage around the 4.0x mid-point, while continuing to deliver on our shareholder remuneration strategy as presented during the December 2018 Capital Markets Day."
At March 31, 2020, we served 2,064,600 unique customer relationships, which represented approximately 61% of the 3,394,200 homes passed by our leading hybrid fiber coaxial ("HFC") network across our Flemish and Brussels footprint. Our cable network consists of a dense fiber backbone with local loop coaxial cable connections and spectrum of up to 1.2 GHz. Through both EuroDocsis 3.0 and 3.1 technologies, we offer data downstream speeds of up to 1 Gbps across our entire footprint, reaffirming our leading market position as the fastest internet service provider.
At March 31, 2020, we provided 4,730,800 fixed services ("RGUs") consisting of 1,852,000 video, 1,672,500 broadband internet and 1,206,300 fixed-line telephony subscriptions. In addition, approximately 92% of our video subscribers had upgraded to our higher ARPU enhanced video platform at March 31, 2020. Enhanced video subscribers enjoy an enriched TV experience with unrestricted access to a wider range of digital, HD and pay television sports, series and movies channels, a vast library of domestic and international video-ondemand ("VOD") content and our over-the-top ("OTT") platform "Yelo Play". At March 31, 2020, we also served 2,814,800 mobile subscribers, of which approximately 85% are subscribed to any of our attractive mobile or fixed mobile converged ("FMC") rate plans. We reached a bundling rate of 2.29 fixed RGUs per unique customer relationship at the end of Q1 2020, which was stable compared to the prior year period. Approximately 31% of our cable customers subscribed to a quadruple-play bundle at March 31, 2020 (excluding mobile subscriptions under the BASE brand), a solid increase of 3 percentage points compared to the same period of last year, indicating continued uptake of our fixed-mobile convergence strategy.
Net subscriber growth for our FMC bundles remained robust in Q1 2020, attracting 28,400 net subscribers in the quarter. This was broadly stable versus Q1 2019 despite the impact of COVID-19, which led to a temporary closure of our retail shops as of mid-March 2020 and hence affected both gross sales and annualized churn trends since then. At March 31, 2020, our FMC customer base, which includes our "WIGO" ,"YUGO" and "KLIK" (B2B) customers, reached a total of 575,800 customers, which was up 34% year-on-year. As such, the penetration of FMC subscribers relative to the total number of customer relationships represented approximately 28% at the Q1 2020 quarter-end as compared to approximately 20% a year ago.
The ARPU per customer relationship, which excludes our mobile telephony revenue and certain other types of revenue, is one of our core operating statistics as we seek to obtain a larger share of our customers' telecommunication and entertainment spending. For the three months ended March 31, 2020, we achieved an ARPU per customer relationship of €58.3, representing a solid 2% increase relative to the prior year period. Growth in the ARPU per customer relationship was underpinned by (i) a higher proportion of multipleplay subscribers in our overall customer mix, (ii) a larger share of higher-tier broadband subscribers in our mix and (iii) the benefit from certain price adjustments, which was partly offset by a higher proportion of bundle discounts (including fixed-term promotions) and lower out-of-bundle usage-related revenue.
At March 31, 2020, we served 1,672,500 broadband internet subscribers, representing a net increase of 8,100 RGUs from December 31, 2019. This represented our best quarterly performance since Q2 2016, despite the impact of COVID-19, which led to a temporary closure of our retail shops beginning in mid-March 2020 and hence affected both gross sales and annualized churn trends since then. While our business broadband subscriber base continued to grow, we also managed to reverse momentum on the residential side with 2,800 net subscriber additions, marking the best quarterly result since mid-2016. Overall, we managed to compensate for the loss of our physical distribution outlets by shifting a significant part of our sales to our online channels and fine-tuning our home delivery and self-installation processes. Annualized churn reached 8.3% in Q1 2020 and was 430 basis points lower versus the 12.6% in Q1 2019, which was impacted by the final phase of the SFR Belux customer migration during that period, and was therefore back to pre-customer migration levels.
As we continue to focus on maximizing the in-home connectivity customer experience, we distributed over 594,000 WiFi boosters at the end of Q1 2020, an increase of 9% compared to the preceding quarter and a strong driver of customer satisfaction and our net promotor score ("NPS"). Five years after the start of our fixed network upgrade program "De Grote Netwerf", we have started to commercialize data download speeds of 1 gigabit per second throughout our entire footprint. In Q3 2019, we also increased the speeds of all existing Internet offers by 50% up to 150% for over 1.2 million customers and launched a brand new "GIGA Speedboost" option, which enables the top speed of 1 gigabit per second for an additional €15 per month. Since the outbreak of the COVID-19 pandemic, we have seen an 80% increase of fixed data traffic on our HFC network. We also doubled our Gigabit Speedboost customer base compared to the same period last year. The continued uptiering of our broadband internet customer base further drove increases in the weighted average data download speed, reaching 202 Mbps at March 31, 2020. This represents an impressive growth of 44% versus 140 Mbps a year ago.
At March 31, 2020, we served 1,206,300 fixed-line telephony subscribers, representing a 3% decrease compared to the same period of last year, reflecting an overall declining market trend. Relative to December 31, 2019, our fixed-line telephony subscriber base contracted by 6,200 net RGUs, marking an improved trend versus the net organic loss of 8,700 in Q4 2019 and representing our best quarterly performance since Q2 2018. Since the outbreak of the COVID-19 pandemic, we have seen an increased fixed voice usage across our customer base, up 50% on average as compared to the average traffic in Q1 2020 pre-COVID-19 outbreak. Similar to broadband internet, annualized churn for our fixed-line telephony service improved significantly compared to the same period of last year decreasing by 520 basis points to 9.6% in Q1 2020, which represented the lowest level since Q2 2017.
Our mobile telephony subscriber base, which excludes subscribers under our commercial wholesale partnerships and our SME customers, totaled 2,814,800 SIMs at the end of Q1 2020, including 2,387,600 postpaid subscribers. The remaining 427,200 mobile subscribers are prepaid subscribers under the BASE brand. Net postpaid subscriber growth remained solid with 23,800 SIMs added in Q1 2020, mainly driven by the continued growth of our FMC subscriber base.
At March 31, 2020, our total basic and enhanced video customer base reached 1,852,000 RGUs. This represented a net loss of 14,600 video subscribers during Q1 2020, which marked another improvement versus the prior quarter mainly because of the improved net additions in our enhanced video subscriber base. The aforementioned net loss excludes migrations to our enhanced video service and represents customers churning to competitors' platforms, such as other digital television, OTT and satellite providers, or customers terminating their video service or having moved out of our service footprint.
Early October 2019, we launched our "Signal Switch" campaign in order to prepare for the switch-off of both the analog radio and video signals between 2020 and 2021. This will free up capacity on the network for the ever-increasing digital traffic. We decided to temporarily postpone this project as a result of the precautionary measures taken for the COVID-19 crisis. This project will be relaunched again depending on further developments of the current ongoing crisis.
At March 31, 2020, 1,704,600 of our video customers had upgraded to our higher ARPU enhanced video services, so they can enjoy a much richer TV experience, including free and unrestricted access to our "Yelo Play" app, through which they can enjoy a unique content experience on multiple connected devices in the home and out-of-home. This includes our latest digital TV platform, including our next-generation cloud-based set-top box with voice recognition capabilities, which we launched at the end of April 2019. In Q1 2020, our enhanced video subscriber base increased by 2,700 net RGUs. This represented a substantial improvement compared to the preceding quarter when we lost 3,400 net RGUs and was our best quarterly achievement since Q3 2016. The improved trend in the quarter was driven by (i) robust FMC sales as mentioned earlier and (ii) the awareness campaign around "Signal Switch", which triggered the migration of analog TV subscribers towards a a digital offer.
Our subscription VOD packages "Play" and "Play More" reached 421,000 customers in Q1 2020, representing a decrease of 10,300 subscriptions versus December 31, 2019, mainly driven by higher churn of customers at the end their promotional period and therefore skewing the overall trend. We continue to provide the broadest sports offering within our footprint through "Play Sports", which combines domestic and foreign football, including the UK Premier League amongst others, with other major sport events including golf, ATP tennis, Formula One racing, volleyball, basketball and hockey. At the end of Q1 2020, we served 218,800 "Play Sports" customers, representing a net loss of 19,900 subscribers compared to December 31, 2019. This was mainly caused by a temporary halt of both national and international football championships and other major sports events due to the COVID-19 pandemic. We decided to supplement our Play Sports channels in April and May with great films and series included in the Play More entertainment package. In addition, while no live matches are currently being played due to the COVID-19 pandemic, we are offering other premium sports-related content to our Play Sports customers, including plans to rebroadcast legendary matches.
Rebased growth: For purposes of calculating rebased growth rates on a comparable basis for the three months ended March 31, 2020, we have adjusted our historical revenue and Adjusted EBITDA to include the pre-acquisition revenue and Adjusted EBITDA of De Vijver Media (fully consolidated since June 3, 2019) in our rebased amounts for the three months ended March 31, 2019 to the same extent that the revenue and Adjusted EBITDA of such entity is included in our results for the three months ended March 31, 2020. See Definitions for more disclosures. For more information regarding the variance between our reported and rebased financial results, we refer to the Investor & Analyst Toolkit, which is available on our investor relations website.
Allocation of bundle-related subscription revenue: Following the recent revamp of our broadband internet standalone portfolio, a lower revenue share from our fixed and FMC bundles is allocated to broadband internet revenue as of January 1, 2020. This adversely impacts our broadband internet revenue, fully offset by a higher allocation to our video, fixed-line telephony and mobile telephony revenue. The aforementioned change also impacts the ARPU per customer relationship (as this excludes mobile telephony revenue), yet does not impact our total subscription revenue.
Restated statement of financial position December 31, 2019: In the course of Q1 2020, Telenet further executed its accounting for the step acquisition of De Vijver Media concluded on June 3, 2019 ("purchase price allocation"), which resulted in the recognition of €4.6 million deferred tax liabilities through goodwill. The condensed consolidated statement of financial position as per December 31, 2019 has been restated accordingly.
In Q1 2020, we generated revenue of €653.0 million, which was up 4% versus €626.0 million in the prior year period. Our Q1 2020 revenue included a full quarter contribution from the local media company De Vijver Media NV, of which we acquired the remaining 50% stake on June 3, 2019 and which has been fully consolidated as of then. Excluding this inorganic effect, our rebased Q1 2020 revenue remained broadly unchanged as compared to the same period in the prior year. In Q1 2020, our subscription revenue, which includes cable and mobile subscription revenue, increased by 1% both on a reported and rebased basis. This improved performance was driven by continued solid momentum for our FMC bundles in both the residential and the business segments and the benefit of the August 2019 rate adjustments.This effect was almost fully offset by both lower other revenue and business services revenue, reflecting a year-on-year decrease of 3% and 4%, respectively, on a rebased basis as detailed below and mainly impacted by COVID-19.
Our video revenue represents the monthly fee paid by our video subscribers for the channels they receive in the basic tier and the revenue generated by our enhanced video subscribers which primarily includes (i) recurring set-top box rental fees, (ii) fees for supplemental premium content offerings, including our subscription VOD packages "Play", "Play More" and "Play Sports" and (iii) transactional and broadcasting-ondemand services. In Q1 2020, our video revenue amounted to €144.4 million, broadly stable compared to Q1 last year, both on a reported and rebased basis. The improved trend in our video revenue was mainly driven by a higher revenue share from our FMC bundles as mentioned above and the benefit from our rate adjustments broadly offset by the continued net loss of video subscribers.
The revenue generated by our residential and small business broadband internet RGUs totaled €160.2 million in Q1 2020, broadly stable compared to the same period of last year, both on a reported and rebased basis. Following the recent revamp of our broadband standalone portfolio, a lower revenue share from our fixed and FMC bundles is allocated to broadband internet revenue since January 1, 2020. This had an adverse impact on our broadband internet revenue, fully offset by a higher allocation to our video, fixed-line telephony and mobile telephony revenue. This shift in our revenue mix fully offset higher SOHO B2B-related broadband revenue, the August 2019 price adjustment and the continued uptiering of our broadband internet customer base.
Our fixed-line telephony revenue includes recurring subscription-based revenue from our fixed-line telephony subscribers and variable usage-related revenue, but excludes the interconnection revenue generated by these customers which is reported under other revenue. For the three months ended March 31, 2020, our fixed-line telephony revenue increased 2% on both a reported and rebased basis to €56.8 million compared to €55.6 million in the prior year period. The increase was mainly attributable to the favorable impact from the aforementioned reallocation of our fixed and FMC bundle revenue and higher usage-related revenue in March as a result of increased fixed-line calling behavior during the COVID-19 pandemic.
Our mobile telephony revenue represents the subscription-based revenue generated by our direct mobile telephony subscribers and out-of-bundle revenue, but excludes (i) the interconnection revenue generated by these customers, (ii) the revenue earned from handset sales and (iii) revenue recognized under our "Choose Your Device" programs which are all recorded in other revenue. In Q1 2020, we generated mobile telephony revenue of €113.6 million, representing a 6% year-on-year increase on both a reported and rebased basis. The increase was mainly attributable to the favorable impact from the aforementioned reallocation of our fixed and FMC bundle revenue and continued solid net postpaid subscriber growth, driven by up -and cross-sell to our high-tier FMC bundles. These elements more than offset (i) lower out-of-bundle revenue generated by our mobile subscribers in excess of their monthly bundle on the back of our improved "WIGO" quad-play bundles and the shift to unlimited standalone mobile offers on both Telenet and BASE brands, (ii) higher bundlerelated discounts following the success of our quad-play "WIGO" propositions and (iii) a continued decline in the number of prepaid subscribers.
The revenue reported under business services relates to (i) the revenue generated on non-coax products, including fiber and leased DSL lines, (ii) mobile telephony revenue generated by our SME customers, (iii) our carrier business and (iv) value-added services such as network hosting and managed data security. Our business services revenue also includes the revenue generated by the local ICT integrator Nextel, which we acquired on May 31, 2018. Revenue generated by our business customers on all coax-related products, such as our flagship "KLIK" bundle (formerly called "WIGO Business"), is allocated to our cable subscription revenue lines and is not captured within Telenet Business, our business services division.
Telenet Business generated revenue of €50.0 million for the three months ended March 31, 2020, representing a 4% decrease on both a reported and rebased basis as compared to the prior year period. The decline was mainly caused by (i) a lower contribution from our May 2018 acquired ICT integrator business with COVID-19 resulting in certain project delays and postponements, (ii) lower out-of-bundle revenue generated by our SME mobile subscribers and (iii) a gradual shift from one-time revenue, such as equipment sales or project-related revenue, by recurring revenue earned on such transactions.
Other revenue primarily includes (i) interconnection revenue from both our fixed-line and mobile telephony customers, (ii) advertising and production revenue from De Vijver Media NV, which we fully consolidated as of June 3, 2019, (iii) mobile handset sales, including the revenue earned under our "Choose Your Device" programs, (iv) wholesale revenue generated through both our commercial and regulated wholesale businesses, (v) product activation and installation fees and (vi) set-top box sales revenue. Our other revenue reached €128.0 million in Q1 2020, a 22% year-on-year increase on a reported basis following a full quarter contribution from De Vijver Media as mentioned above. On a rebased basis, our other revenue declined 3% year-on-year, reflecting (i) lower wholesale revenue from the loss of the MEDIALAAN MVNO contract, which has started to affect our revenue as of April last year, (ii) a lower revenue contribution from De Vijver Media as COVID-19 impacted TV advertising revenue and (iii) lower revenue related to handset sales because of the temporary closure of our retail shops as of mid-March following the COVID-19 prevention measures.
For the three months ended March 31, 2020, we incurred total expenses of €499.8 million, representing a 5% increase compared to the prior year period as our total expenses in Q1 2020 reflected the aforementioned inorganic impact from the De Vijver Media acquisition and a €9.2 million accelerated amortization of broadcasting rights given the temporary halt of all major sports events due to the COVID-19 pandemic. Total expenses represented approximately 77% of revenue for the three months ended March 31, 2020 (Q1 2019: approximately 76%). Cost of services provided as a percentage of revenue represented approximately 53% in Q1 2020 (Q1 2019: approximately 55%), while selling, general and administrative expenses represented approximately 23% of our total revenue in Q1 2020 (Q1 2019: approximately 21%).
Our operating expenses, which include our (i) network operating expenses, (ii) direct costs, (iii) staff-related expenses, (iv) sales and marketing expenses, (v) outsourced labor and professional services and (vi) other indirect expenses, remained broadly flat on a reported basis for the three months ended March 31, 2020 despite the aforementioned inorganic acquisition impact. As such, we managed to integrate De Vijver Media into our operations while keeping our operating expenses stable in the quarter. On a rebased basis, when adjusting our prior year expenses for the inorganic acquisition impact, our operating expenses decreased by just over 4% compared to the same period of last year. This was predominantly driven by (i) a 21% decrease in our indirect costs, mainly driven by lower facility-related costs and tight cost control (ii) an 18% reduction in our sales and marketing expenses as Q1 2019 reflected the intensive migration campaign of the remaining SFR subscribers, (iii) a 2% decrease in our direct costs as higher programming costs were more than offset by lower interconnect expenses and lower costs related to handset purchases during the COVID-19 pandemic.
Our network operating expenses reached €54.3 million in Q1 2020, which was unchanged compared to €54.3 million for Q1 2019, both on a reported and rebased basis.
Our direct costs include all of our direct expenses such as (i) costs related to interconnection, including our MVNO-related costs, (ii) programming and copyrights and (iii) handset sales and subsidies. In Q1 2020, our direct costs were €130.3 million, up 3% compared to the prior year period on a reported basis. On a rebased basis, our direct costs showed a 2% year-on-year decrease as higher programming costs were more than offset by lower interconnect expenses and lower costs related to handset purchases during the COVID-19 pandemic.
Staff-related expenses for the three months ended March 31, 2020 were €68.7 million, which represented an increase of 7% compared to the prior year period on a reported basis and reflected the inorganic De Vijver Media acquisition impact. On a rebased basis, staff-related expenses for the three months ended March 31, 2020 decreased just over 1% relative to the same period of last year, reflecting a lower headcount as compared to last year and the impact of the COVID-19 pandemic on our staff-related expenses.
Our sales and marketing expenses in Q1 2020 totaled €21.2 million, representing a year-on-year decrease of 10% and 18% on a reported and rebased basis, respectively, as Q1 2019 reflected the intensive migration campaign of the remaining SFR subscribers.
Costs related to outsourced labor and professional services were €9.5 million in Q1 2020, representing a 6% increase year-on-year on a reported basis. On a rebased basis, costs related to outsourced labor and professional services increased 5% compared to the prior year period.
Other indirect expenses reached €23.4 million for the three months ended March 31, 2020, representing a robust 17% decrease compared to the prior year period. On a rebased basis, other indirect expenses decreased 21% year-on-year, driven by lower facility-related expenses and reflecting our continued focus on operating leverage and tight cost control.
Depreciation and amortization, including impairment of long-lived assets, gain on disposal of subsidiaries and restructuring charges, reached €189.5 million for the three months ended March 31, 2020 compared to €165.7 million for the prior year period and included a €9.2 million accelerated amortization of broadcasting rights given the temporary halt of all major sports events due to the COVID-19 pandemic.
For the three months ended March 31, 2020, net finance income totaled €5.8 million compared to net finance expense of €115.0 million in the prior year period. Finance income in Q1 2020 increased to €152.0 million as compared to €4.0 million last year, primarily due to a €148.1 million higher non-cash gain on our derivatives. Q1 2020 finance expenses increased 23% to €146.2 million compared to €119.0 million in Q1 2019 and included a €18.0 million loss on the extinguishment of debt following the January 2020 refinancing of both our euro and USD-denominated term loan facilities, while we also incurred a higher non-cash foreign exchange loss on our USD-denominated debt in the quarter.
We recorded income tax expense of €6.2 million in Q1 2020 compared to €20.9 million in Q1 2019. Our income tax expense in the quarter was favorably impacted by the recognition of the innovation income tax deduction, including a one-time effect of deductions related to prior periods.
We realized a net profit of €153.2 million in Q1 2020 compared to a net profit of €14.0 million in the prior year period. The substantial increase in our net profit was primarily driven by significantly higher net finance income in the period and lower income tax expense as mentioned above, partly offset by the accelerated amortization of sports-related broadcasting rights. For the three months ended March 31, 2020, we achieved a net profit margin of 23.5% compared to a net profit margin of 2.2% last year.
In Q1 2020, we realized Adjusted EBITDA of €345.6 million, up 8% compared to the prior year period when we achieved Adjusted EBITDA of €319.5 million. Our Q1 2020 Adjusted EBITDA reflected the aforementioned inorganic impact of the De Vijver Media acquisition contributing €5.1 million to our Adjusted EBITDA in Q1 2020. Our Adjusted EBITDA margin reached 52.9% in Q1 2020 compared to 51.0% for Q1 2019 on a reported basis.
On a rebased basis, our Adjusted EBITDA in Q1 2020 increased a solid 4% compared to Q1 2019 as the negative impact from the loss of the MEDIALAAN MVNO contract and certain regulatory headwinds was more than offset by (i) lower sales and marketing expenses due to phasing and last year's impact of the SFR customer migration and (ii) continued tight cost control. On a rebased basis, we succeeded in improving our Adjusted EBITDA margin with 200 basis points compared to the same quarter last year.
| (€ in millions) | For the three months ended March 31, |
||
|---|---|---|---|
| 2020 | 2019 | Change % | |
| Profit for the period | 153.2 | 14.0 | 994 % |
| Income tax expense | 6.2 | 20.9 | (70) % |
| Share of the result of equity accounted investees | (0.4) | 1.1 | N.M. |
| Loss (gain) on disposal of assets to joint venture | — | (0.1) | (100) % |
| Net finance expense (income) | (5.8) | 115.0 | N.M. |
| Depreciation, amortization, impairment and gain on disposal of subsidiaries | 188.5 | 165.3 | 14 % |
| EBITDA | 341.7 | 316.2 | 8 % |
| Share based compensation | 1.8 | 2.5 | (28) % |
| Operating charges related to acquisitions or divestitures | 1.1 | 0.4 | 175 % |
| Restructuring charges | 1.0 | 0.4 | 150 % |
| Adjusted EBITDA | 345.6 | 319.5 | 8 % |
| Adjusted EBITDA margin | 52.9 % | 51.0 % | |
| Net profit margin | 23.5 % | 2.2 % |
N.M. - Not Meaningful
Accrued capital expenditures for the three months ended March 31, 2020 reached €172.7 million, which was unchanged as compared to the prior year period and equivalent to approximately 26% of revenue in the quarter. Our Q1 2020 accrued capital expenditures reflected the full quarter impact from the De Vijver Media acquisition, while our accrued capital expenditures in Q1 2019 included the recognition of the UK Premier League broadcasting rights for a period of three seasons. Under EU IFRS, these football broadcasting rights have been capitalized as an intangible asset and will be amortized as the seasons progress with the exception of the 2019-2020 season as the temporary halt of all major sports events due to the COVID-19 pandemic resulted in an accelerated amortization of broadcasting rights as mentioned above. Excluding the recognition of the football broadcasting rights in Q1 2019, our accrued capital expenditures increased 31% in Q1 2020 due to (i) the aforementioned inorganic impact, (ii) proactive inventory building to safeguard our supply chain processes during the COVID-19 pandemic and (iii) seasonally higher spending on our IT upgrade program, driving further digital capabilities for the future.
Capital expenditures related to customer premises equipment, which includes our spending on set-top boxes, modems and WiFi powerlines, amongst others, represented €29.7 million in Q1 2020. This represented a 13% decrease compared to the prior year period, which reflected the impact of our successful in-home connectivity campaigns and the launch of our next-gen set-top box in Q1 last year. In Q1 2020, capital expenditures related to customer premises equipment represented approximately 17% of our total accrued capital expenditures.
Accrued capital expenditures for network growth and upgrades amounted to €22.7 million in Q1 2020, marking a 20% decrease compared to the prior year period and predominantly reflected the substantial completion of both our fixed and mobile network infrastructure improvement programs and to a lesser extent the impact of COVID-19 on our field operations. For the three months ended March 31, 2020, network-related capital expenditures represented approximately 13% of total accrued capital expenditures.
Capital expenditures for products and services, which reflects our investments in product development and the upgrade of our IT platforms and systems, amongst others, totaled €36.0 million in Q1 2020. This represents a strong 40% year-on-year increase, reflecting higher spending on our IT upgrade program as mentioned above. Capital expenditures for products and services represented approximately 21% of total accrued capital expenditures for the three months ended March 31, 2020.
The remainder of our accrued capital expenditures includes (i) refurbishments and replacements of network equipment, (ii) sports and programming acquisition costs, including certain content acquired by De Vijver Media, (iii) certain recurring investments in our IT platform and systems and (iv) lease additions under IFRS 16. These reached €84.3 million for the three months ended March 31, 2020.
The above implies that approximately 51% of our accrued capital expenditures in Q1 2020 were scalable and subscriber growth related. We will continue to closely monitor our capital expenditures in order to make sure that they drive incremental returns.
| (€ in millions) | For the three months ended March 31, |
||
|---|---|---|---|
| 2020 | 2019 | Change % | |
| Accrued capital expenditures | 172.7 | 172.7 | — % |
| Assets acquired under capital-related vendor financing arrangements | (29.8) | (68.1) | (56) % |
| Assets acquired under leases | (27.1) | (19.1) | 42 % |
| Changes in current liabilities related to capital expenditures | 1.7 | 17.1 | (90) % |
| Cash capital expenditures | 117.5 | 102.6 | 15 % |
In Q1 2020, the sum of our Adjusted EBITDA and accrued capital expenditures yielded an Operating Free Cash Flow of €172.9 million. Compared to Q1 2019, our Operating Free Cash Flow decreased 8% and was mainly impacted by a 31% increase in our accrued capital expenditures (excluding the recognition of the UK Premier League football broadcasting rights), which more than offset the increase in our Adjusted EBITDA.
| (€ in millions) | For the three months ended March 31, |
|||
|---|---|---|---|---|
| 2020 | 2019 | Change % | ||
| Adjusted EBITDA | 345.6 | 319.5 | 8 % | |
| Accrued capital expenditures | (172.7) | (172.7) | — % | |
| Recognition of football broadcasting rights | — | 41.3 | 100 % | |
| Accrued capital expenditures excluding recognition of football broadcasting rights and mobile spectrum licenses |
(172.7) | (131.4) | 31 % | |
| Operating Free Cash Flow | 172.9 | 188.1 | (8)% |
For the three months ended March 31, 2020, our operations yielded €282.5 million of net cash compared to the €165.5 million we generated during the prior year period. The net cash from our operating activities for Q1 2020 included the inorganic impact from the De Vijver Media acquisition. Our net cash from operating activities includes the impacts of IFRS 16 as of January 1, 2019, which is offset through the net cash used in financing activities. Our net operating cash flow was up a strong 71% year-on-year, driven by phasing in our annual cash tax payment and the aforementioned increase in our Adjusted EBITDA. As we expect to settle our cash tax payment in the third quarter of 2020, this will negatively affect the year-on-year comparison in Q3 2020.
We used €117.4 million of net cash in investing activities in Q1 2020 compared to €102.3 million in Q1 2019. We utilize a vendor financing program through which we are able to extend our payment terms for certain suppliers to 360 days at an attractive all-in cost. During Q1 2020, we acquired €29.8 million of assets through capital-related vendor financing arrangements, favorably impacting our net cash used in investing activities for the equivalent amount. This represented a 56% year-on-year decline. Please refer to Section 2.5 - Capital expenditures for a reconciliation between accrued capital expenditures and cash capital expenditures.
For the three months ended March 31, 2020, the net cash used in financing activities was €129.0 million compared to €104.2 million of net cash used in financing activities in Q1 2019. The net cash used in financing activities in Q1 2020 reflected a net cash outflow of €55.7 million related to loan repayments including scheduled repayments of our short-term vendor financing commitments. In addition, we spent €29.0 million on share repurchases in Q1 2020 as part of our Share Repurchase Program 2020. Under this program, we acquired 1.1 million shares during March 2020 at an average price of €30.43 for an aggregate amount of €33.5 million. The final payment to the independent financial intermediary of €4.5 million has been settled in early April 2020. We also paid €10.6 million of debt issuance costs related to the issuance of our EUR and USD-denominated term loan facilities in January 2020. The remainder of the net cash used in financing activities primarily consisted of finance lease repayments and other financial payments.
In Q1 2020, we generated Adjusted Free Cash Flow of €83.4 million compared to €19.8 million in Q1 last year. Relative to the same period of last year, our Adjusted Free Cash Flow more than tripled due to the aforementioned phasing in our cash tax payment. As we expect to settle our cash tax payment in the third quarter of 2020, this will negatively affect the year-on-year comparison in Q3 2020. In Q1 2020, we had net payments of €26.3 million under our vendor financing program as compared to a €43.9 million benefit in Q1 2019. Excluding these vendor financing-related impacts, our Adjusted Free Cash Flow growth would have been even higher.
At March 31, 2020, we carried a total debt balance (including accrued interest) of €5,738.7 million, of which €1,511.5 million principal amount is related to the € and USD-denominated Senior Secured Fixed Rate Notes due March 2028 and €3,201.9 million principal amount is owed under our 2018 Amended Senior Credit Facility with maturities ranging from April 2028 through April 2029. Our total debt balance at March 31, 2020 also included a principal amount of €328.6 million related to our vendor financing program and €4.0 million for the outstanding portion of the 2G and 3G mobile spectrum licenses. The remainder primarily represents lease obligations associated with the Interkabel Acquisition and lease liabilities following the adoption of IFRS 16 as of January 1, 2019.
At March 31, 2020, we carried €328.6 million of short-term debt related to our vendor financing program, all of which is maturing within less than twelve months. This represented a decrease of €26.3 million versus December 31, 2019. For the full year 2020, we still anticipate our vendor financing program to remain relatively stable compared to the end of 2019. As of February 2020, we have reduced the applicable margin on our future short-dated commitments under the vendor financing program by 15 basis points to 2.10% over EURIBOR floored at 0%. Given the aforementioned size of the program, this will have a modest accretive impact on our Adjusted Free Cash Flow.
In January 2020, we successfully issued and priced a new 8.25-year USD 2,295 million Term Loan ("Facility AR") and a new 9.25-year €1,110 million Term Loan ("Facility AQ"). We have used the net proceeds of these issuances to redeem in full the previous Term Loans AN and AO of USD 2,295 million and €1,110 million, respectively. Through this leverage-neutral transaction, we succeeded in reducing the margin on both term loans by 25 basis points, which further solidifies our Adjusted Free Cash Flow profile after the October 2019 refinancing of the 4.875% Senior Secured Notes due 2027.
In April 2020, we successfully issued a new 6.2-year €510.0 million revolving credit facility, replacing our current €460.0 million revolving credit facilities with certain availabilities up to June 2023. As such, we succeeded in extending and upsizing our revolving credit facilities, further strengthening our liquidity profile. See 3.2 Subsequent events for more information.
In April 2020, we also completed the 10% repurchase of our 3.50% €600.0 million Senior Secured Fixed Rate Notes due March 2028. As a result of this transaction, the principal amount under these Notes decreased to €540.0 million, leading to annual cash interest savings of €2.1 million further adding to our robust Adjusted Free Cash Flow profile. See 3.2 Subsequent events for more information.
Excluding short-term liabilities related to our vendor financing program, we face no debt maturities prior to March 2028 with an improved weighted average maturity of 8.3 years at March 31, 2020 following the aforementioned January 2020 refinancing of our term loan facilities. In addition, we also had full access to €505.0 million of undrawn commitments under our revolving credit facilities at March 31, 2020 with certain availabilities up to June 2023. On a pro forma basis - to reflect the issuance of the new RCF as mentioned above - our undrawn commitments would have totaled €555.0 million at March 31, 2020 with certain availabilities up to May 2026.
The table below provides an overview of our debt instruments and payment schedule at March 31, 2020.
| Total Facility |
Drawn | Undrawn | ||||
|---|---|---|---|---|---|---|
| as per | amount | amount | Maturity Date | Interest rate | Interest payments due | |
| March 31, 2020 | ||||||
| (€ in millions) | ||||||
| 2018 Amended Senior Credit Facility |
||||||
| Term Loan AR | 2,091.9 | 2,091.9 | — | April 30, 2028 | Floating 6-month LIBOR (0% floor) + 2.00% |
Semi-annual (Jan. and July) |
| Term Loan AQ | 1,110.0 | 1,110.0 | — | April 30, 2029 | Floating 6-month EURIBOR (0% floor) + 2.25% |
Semi-annual (Jan. and July) |
| Revolving Credit Facility (Facility AG) |
400.0 | — | 400.0 | June 30, 2023 | Floating 1-month EURIBOR (0% floor) + 2.75% |
Monthly |
| Revolving Credit Facility (Facility AP) |
60.0 | — | 60.0 | December 31, 2021 |
Floating 1-month EURIBOR (0% floor) + 2.25% |
Monthly |
| Senior Secured Fixed Rate Notes |
||||||
| €600 million Senior Secured Notes due 2028 (Facility AK) |
600.0 | 600.0 | — | March 1, 2028 | Fixed 3.50% | Semi-annual (Jan. and July) |
| USD 1.0 billion Senior Secured Notes due 2028 (Facility AJ) |
911.5 | 911.5 | — | March 1, 2028 | Fixed 5.50% | Semi-annual (Jan. and July) |
| Other | ||||||
| Revolving Credit Facility | 20.0 | — | 20.0 | September 30, 2021 |
Floating 1-month EURIBOR (0% floor) + 2.00% |
Monthly |
| Overdraft Facility | 25.0 | — | 25.0 | March 31, 2021 | Floating 1-month EURIBOR (0% floor) + 1.60% |
Not applicable |
| Total notional amount | 5,218.4 | 4,713.4 | 505.0 |
Note: In the table above, Telenet's USD-denominated debt has been converted into € using the March 31, 2020 EUR/USD exchange rate. As Telenet has entered into several derivative transactions to hedge both the underlying floating interest rate and exchange risks, the €-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 its net leverage ratio, Telenet uses the €-equivalent hedged amounts given the underlying economic risk exposure.
At March 31, 2020, we held €137.5 million of cash and cash equivalents compared to €101.4 million at December 31, 2019. To minimize the concentration of counterparty risk, our cash equivalents and AAA-rated money market funds are placed with highly rated European and US financial institutions. Relative to December 31, 2019, our cash balance increased on the back of a robust Adjusted Free Cash Flow performance in the quarter, partially offset by (i) a net cash outflow of €55.7 million related to loan repayments including scheduled repayments of our short-term vendor financing commitments, (ii) €29.0 million of net cash used under the Share Repurchase Program 2020 and (iii) a €10.6 payment related to the issuance of our EUR and USD-denominated term loan facilities in January 2020. In addition to our available cash balance, we also had access to €505.0 million of available commitments under our 2018 Amended Senior Credit Facility and our other revolving credit facilities at March 31, 2020, subject to compliance with the covenants mentioned below. On a pro forma basis - to reflect the issuance of the new RCF as mentioned above - our undrawn commitments would have totaled €555.0 million at March 31, 2020 with certain availabilities up to May 2026.
At the occasion of the December 2018 Capital Markets Day, we reconfirmed our leverage framework, maintained at 3.5x to 4.5x Net Total Debt to Consolidated Annualized EBITDA ("net total leverage"). In absence of any material acquisitions and/or significant changes in our business or regulatory environment, we intend to stay around the 4.0x mid-point through an attractive and sustainable level of shareholder disbursements. At March 31, 2020, our net total leverage reached 4.0x, which was unchanged compared to December 31, 2019.
Our net covenant leverage, as calculated under the 2018 Amended Senior Credit Facility and which excludes lease-related liabilities and vendor financing-related short-term liabilities, reached 3.2x at March 31, 2020. This was unchanged versus December 31, 2019. Our current net covenant leverage ratio is significantly below the springing maintenance covenant of 6.0x and the incurrence test of 4.5x net senior leverage. The aforementioned maintenance covenant only applies, however, in case we would draw 40% or more under our revolving credit facilities. At March 31, 2020, our revolving credit facilities were fully undrawn as mentioned above.
We delivered a robust financial performance in the first quarter with (i) broadly unchanged revenue on a rebased basis, (ii) a solid 4% growth in our rebased Adjusted EBITDA and (iii) a strong delivery on both Operating Free Cash Flow and Adjusted Free Cash Flow. The impact of the global COVID-19 pandemic on our Q1 2020 financials was relatively limited, but expected to be moderately negative in Q2 2020 and the rest of the year especially given the exposure of our subsidiary De Vijver Media to the more cyclical media and advertising markets. We continue to see underlying healthy trends in our core connectivity business both on the residential and the business side. This is underpinned by strong momentum for our core FMC bundles and a continued uptiering of our broadband customer base with the average download speed reaching 202 Mbps at the end of Q1 2020, which was up 44% versus 140 Mbps a year ago.
As detailed under 2. Financial highlights, we've mainly seen four COVID-related headwinds on our financial profile. First, we generated less low-margin revenue from the sale of handsets compared to the same period of last year given the closure of our retail stores since mid-March. In addition, we have also seen an earlier churn uptick for our pay-television sports channels Play Sports relative to previous years given the temporary halt to all major sports events since mid-March. Third, our May 2018 acquired ICT integrator business Nextel has been adversely impacted by certain delays in project-driven revenue, while finally we recorded lower advertising revenue at our media business De Vijver Media, which we acquired in June last year.
Despite today's exceptional circumstances, we remain very well positioned for the future thanks to our leading gigabit HFC and 4G+ converged network infrastructure combined with our value-accretive FMC strategy. Backed by our best-in-class Adjusted Free Cash Flow conversion and our robust liquidity and longterm debt maturity profile of 8.3 years, we remain in a very strong position to drive attractive shareholder value in 2020 and beyond. Therefore, we reaffirm our three-year guidance as presented during the December 2018 Capital Markets Day. As such, we remain on track to deliver an Operating Free Cash Flow CAGR of 6.5 to 8.0%(a) over the 2018-2021 period (excluding the recognition of football broadcasting rights and mobile spectrum licenses and excluding the impact of IFRS 16, applicable as of January 1, 2019).
As for FY 2020, we expect COVID-19 to have a moderately negative, yet temporary, impact on both our revenue and Adjusted EBITDA performance of around 2 percentage points. This reflects the anticipated impacts of the current lock-down as of mid-March 2020 and excludes the effects of any additional lock-downs in the second half of the year, which could further affect our operations. It also assumes we will gradually exit the lock-down starting in May with a gradual economic recovery thereafter. Against this backdrop, we anticipate a top line decline of around 2% on a rebased basis. Excluding our other revenue, which includes (i) interconnection revenue from both our fixed-line and mobile telephony customers, (ii) advertising and production revenue from De Vijver Media NV, which we fully consolidated as of June 3, 2019, (iii) mobile handset sales, including the revenue earned under our "Choose Your Device" programs, (iv) wholesale revenue generated through both our commercial and regulated wholesale businesses, (v) product activation and installation fees and (vi) set-top box sales revenue, we anticipate our revenue for the full year to remain broadly stable compared to 2019, underpinning the resilience of our residential and business connectivity segments. We will continue to control our cost base, making sure we generate operating leverage across the business. As such, we expect our Adjusted EBITDA to contract by around 1% on a rebased basis. Given the robust nature of both our fixed and mobile infrastructure and our demonstrated track record of carefully balancing our future investments, we still expect our Operating Free Cash Flow to grow, more specifically between 1 and 2% on a rebased basis. Finally, we continue to target Adjusted Free Cash Flow of €415.0 - €435.0 million, skewed however towards the lower end of this range.
(a) A reconciliation of our Operating Free Cash Flow CAGR for 2018-2021 to a EU IFRS measure is not provided as not all elements of the reconciliation are projected as part of our forecasting process, as certain items may vary significantly from one period to another.
With that, we reconfirm our intention to maintain net total leverage around the 4.0x mid-point, while continuing to deliver on our shareholder remuneration strategy as presented during the December 2018 Capital Markets Day. As part of this capital allocation framework, we aim to distribute between 50% and 70% of the prior year Adjusted Free Cash Flow to shareholders through intermediate and final dividends. Within the boundaries of the aforementioned net total leverage framework and in absence of any of the above factors, the remaining part of our Adjusted Free Cash Flow may be considered for incremental share buy-backs, extraordinary dividends, deleveraging, accretive acquisitions or a combination thereof.
| Outlook FY 2018 - | |||
|---|---|---|---|
| 2021 | As presented on December 4, 2018 | As reaffirmed on April 30, 2020 | |
| Operating Free Cash Flow CAGR (rebased) (a, b) |
Between 6.5% - 8.0% | Between 6.5% - 8.0% | |
| Outlook FY 2020 | FY 2019 Rebased(c) |
As presented on February 12, 2020 |
As amended on April 30, 2020 |
| Revenue (rebased) | €2,626.0 million | Broadly stable | Around -2% |
| Revenue, excluding other revenue (rebased) (d) |
€2,089.4 million | - | Broadly stable |
| Adjusted EBITDA growth(e) (rebased) |
€1,394.2 million | Around 1% | Around -1% |
| Operating Free Cash Flow growth (rebased)(b, f) |
€838.0 million | Around 2% | Between 1 - 2% |
| Adjusted Free Cash Flow(g, h) |
- | €415.0 - 435.0 million | Lower end of the €415.0 - 435.0 million range |
(a) A reconciliation of our Operating Free Cash Flow CAGR for 2018-2021 to a EU IFRS measure is not provided as not all elements of the reconciliation are projected as part of our forecasting process, as certain items may vary significantly from one period to another.
(b) Excluding the recognition of football broadcasting rights and mobile spectrum licenses and excluding the impact from IFRS 16 on our accrued capital expenditures.
(c) Including the pre-acquisition revenue and Adjusted EBITDA of De Vijver Media (fully consolidated since June 3, 2019) and excluding the revenue and Adjusted EBITDA of Coditel S.à r.l. (deconsolidated as od April 1, 2020).
(d) Other revenue includes (i) interconnection revenue from both our fixed-line and mobile telephony customers, (ii) advertising and production revenue from De Vijver Media NV, which we fully consolidated as of June 3, 2019, (iii) mobile handset sales, including the revenue earned under our "Choose Your Device" programs, (iv) wholesale revenue generated through both our commercial and regulated wholesale businesses, (v) product activation and installation fees and (vi) set-top box sales revenue as detailed under 2.1 Revenue.
(e) A reconciliation of our Adjusted EBITDA guidance for 2020 to a EU IFRS measure is not provided as not all elements of the reconciliation are projected as part of our forecasting process, as certain items may vary significantly from one period to another.
(f) A reconciliation of our Operating Free Cash Flow guidance for 2020 to a EU IFRS measure is not provided as not all elements of the reconciliation are projected as part of our forecasting process, as certain items may vary significantly from one period to another.
(g) A reconciliation of our Adjusted Free Cash Flow guidance for 2020 to a EU IFRS measure is not provided as not all elements of the reconciliation are projected as part of our forecasting process, as certain items may vary significantly from one period to another.
(h) Assuming certain payments are made on our current 2G and 3G mobile spectrum licenses in Q4 2020 and the tax payment on our 2019 tax return will not occur until early 2021.
On April 1, 2020, Eltrona Interdiffusion SA ("Eltrona") and Telenet announced that the merger between Telenet's Luxembourg cable operations (Coditel S.à r.l.) and the cable operations of Eltrona has been formally concluded. This merger confirms the strategic partnership between Eltrona's and Telenet's shareholders. Post Luxembourg, a shareholder of Eltrona since 1998, has sold its 34% stake to Telenet, with the result that after the merger, the founding shareholders will hold 50% +1 of the shares and Telenet 50% -1 of the shares of the merged entity. For Telenet, the transaction also means that the activity of SFR-Coditel will no longer be consolidated in its results as of April 1, 2020. Please refer to the Investor & Analyst Toolkit on Telenet's investor relations website for an update on the rebased FY 2019 results, which includes the acquisition of De Vijver Media NV over the January-May 2019 period and the divestment of Coditel S.à r.l. as of April 1, 2019.
In early April 2020, Telenet announced it has intervened in Orange Belgium's legal action against the sale of the Walloon cable operator VOO to Providence. After a more thorough legal analysis of the procedure that Orange Belgium initiated against the sale of VOO, Telenet concluded that it was more judicious for the Company to intervene in the procedure in order to safeguard its rights with respect to any decision which could be taken in this case.
Telenet's financing subsidiary Telenet International Finance S.à r.l. has entered into a new 6.2-year €510.0 million revolving credit facility (the "new RCF"). The new RCF replaces the Company's current €460.0 million revolving credit facilities with certain availabilities up to June 2023. As such, Telenet succeeded in extending and upsizing its revolving credit facilities, further strengthening its liquidity profile. In addition, Telenet continues to have access to €45.0 million of additional liquidity under separate agreements with certain lenders, bringing the total liquidity buffer to €555.0 million on top of the €137.5 million of cash and cash equivalents the Company held on March 31, 2020.
The new RCF has the following characteristics: (i) maturity of May 31, 2026 (versus December 31, 2021 for the current €60.0 million RCF AP and June 30, 2023 for the current €400.0 million RCF AG), (ii) a margin of 2.25% over EURIBOR (floored at 0%) (versus 2.75% under RCF AG and 2.25% under the short-dated RCF AP) and (iii) a commitment fee of 40% of the margin (unchanged). The new RCF can be used for general corporate purposes, which may include acquisitions, distributions to shareholders and general working capital requirements of the Company.
Telenet's financing subsidiary Telenet Finance Luxembourg Notes S.à r.l. ("TFLN") has successfully completed the 10% repurchase of its 3.50% €600.0 million Senior Secured Fixed Rate Notes due March 2028 (the "Notes") for an aggregate amount of €56.6 million. The Notes were repurchased at a weighted average price of 94.375% over the period March 12, 2020 up to April 7, 2020 through an independent financial intermediary, who repurchased such Notes on TFLN's behalf. The transaction was settled on April 9, 2020 through excess cash on the Company's balance sheet and will further solidify the Company's Adjusted Free Cash Flow profile. TFLN has cancelled the repurchased Notes in full, including the settlement of accrued interest. Through this transaction, the outstanding principal amount under the Notes decreased to €540.0 million, leading to annual cash interest savings of €2.1 million.
On April 29, 2020, Telenet's Annual General Shareholders' Meeting approved the proposed gross final dividend of €1.3050 per share, equivalent to €143.2 million based on 109,733,247 dividend-entitled shares as per March 20, 2020 and excluding 4,923,538 treasury shares at that time which are not dividend-entitled. The final dividend will be paid on May 6, 2020 with the Telenet shares trading ex-dividend as of the opening of the Brussels stock exchange on May 4, 2020. The sum of the December 2019 gross intermediate dividend of €62.8 million (€0.57 per share) and the proposed gross final dividend of €143.2 million (€1.3050 per share) leads to a gross total dividend over FY 2019 of €206.0 million (€1.8750 per share).
On April 29, 2020, Telenet's Extraordinary Shareholders' Meeting approved the proposed cancellation of 814,966 treasury shares. This proposal is consistent with Telenet's policy to maintain an adequate level of treasury shares to cover the outstanding obligations under the Company's management long-term incentive plans. Consequently, the Company's share count decreased from 114,656,785 to 113,841,819 with immediate effect.
| As of and for the three months ended March 31, | 2020 | 2019 | Change % |
|---|---|---|---|
| Total Services - Combined Network | |||
| Homes passed (13) | 3,394,200 | 3,357,100 | 1 % |
| Video | |||
| Basic video (6) | 147,400 | 191,400 | (23) % |
| Enhanced video (7) | 1,704,600 | 1,725,400 | (1) % |
| Total video | 1,852,000 | 1,916,800 | (3)% |
| Internet | |||
| Residential broadband internet | 1,449,900 | 1,472,200 | (2) % |
| Business broadband internet | 222,600 | 185,900 | 20 % |
| Total broadband internet (8) | 1,672,500 | 1,658,100 | 1 % |
| Fixed-line telephony | |||
| Residential fixed-line telephony | 1,068,500 | 1,127,700 | (5) % |
| Business fixed-line telephony | 137,800 | 115,500 | 19 % |
| Total fixed-line telephony (9) | 1,206,300 | 1,243,200 | (3)% |
| Total RGUs (14) | 4,730,800 | 4,818,100 | (2)% |
| Churn (15) | |||
| Video | 9.3 % | 12.8 % | |
| Broadband internet | 8.3 % | 12.6 % | |
| Fixed-line telephony | 9.6 % | 14.8 % | |
| Customer relationship information | |||
| Triple-play customers | 1,106,800 | 1,135,300 | (3) % |
| Total customer relationships (11) | 2,064,600 | 2,099,800 | (2) % |
| Services per customer relationship (11) | 2.29 | 2.29 | — % |
| ARPU per customer relationship (in € / month) (11) (12) | 58.3 | 57.3 | 2 % |
| As of and for the three months ended March 31, | 2020 | 2019 | Change % |
| Mobile statistics | |||
| Mobile telephony | |||
| Postpaid subscribers | 2,387,600 | 2,228,100 | 7 % |
| Prepaid subscribers | 427,200 | 476,700 | (10) % |
| Total mobile subscribers (10) | 2,814,800 | 2,704,800 | 4 % |
| For the three months ended | ||||
|---|---|---|---|---|
| (€ in millions, except shares and per share amounts) | March 31, | |||
| 2020 | 2019 | Change % |
||
| Profit for the period | ||||
| Revenue | 653.0 | 626.0 | 4 % | |
| Expenses | ||||
| Cost of services provided | (348.2) | (344.8) | 1 % | |
| Gross profit | 304.8 | 281.2 | 8 % | |
| Selling, general & administrative expenses | (151.6) | (130.3) | 16 % | |
| Operating profit | 153.2 | 150.9 | 2 % | |
| Finance income | 152.0 | 4.0 | 3,700 % | |
| Net interest income and foreign exchange gain | 0.1 | 0.2 | (50) % | |
| Net gain on derivative financial instruments | 151.9 | 3.8 | 3,897 % | |
| Finance expenses | (146.2) | (119.0) | 23 % | |
| Net interest expense, foreign exchange loss and other finance expenses | (128.2) | (119.0) | 8 % | |
| Loss on extinguishment of debt | (18.0) | — | 100% | |
| Net finance income (expense) | 5.8 | (115.0) | N.M. | |
| Share of the result of equity accounted investees | 0.4 | (1.1) | N.M. | |
| Gain on disposal of assets related to a joint venture | — | 0.1 | (100) % | |
| Profit before income tax | 159.4 | 34.9 | 357 % | |
| Income tax expense | (6.2) | (20.9) | (70) % | |
| Profit for the period | 153.2 | 14.0 | 994 % | |
| Other comprehensive income (loss) for the period, net of income tax | ||||
| Items that will not be reclassified to profit or loss | ||||
| Remeasurements of defined benefit liability/(asset) | — | — | —% | |
| Deferred tax | — | — | —% | |
| Other comprehensive income for the period, net of income tax | — | — | —% | |
| Total comprehensive income for the period | 153.2 | 14.0 | 994 % | |
| Profit attributable to: | 153.2 | 14.0 | 994 % | |
| Owners of the Company | 153.3 | 13.9 | 1,003 % | |
| Non-controlling interests | (0.1) | 0.1 | N.M. | |
| Total comprehensive income for the period, attributable to: | 153.2 | 14.0 | 994 % | |
| Owners of the Company | 153.3 | 13.9 | 1,003 % | |
| Non-controlling interests | (0.1) | 0.1 | N.M. |
| (€ in millions, except shares and per share amounts) | For the three months ended March 31, |
||
|---|---|---|---|
| 2020 | 2019 | Change % |
|
| Weighted average shares outstanding | 110,052,569 | 110,419,863 | |
| Basic earnings per share | 1.39 | 0.13 | N.M. |
| Diluted earnings per share | 1.39 | 0.13 | N.M. |
| Revenue by Nature | |||
| Subscription revenue: | |||
| Video | 144.4 | 144.9 | — % |
| Broadband internet | 160.2 | 161.2 | (1) % |
| Fixed-line telephony | 56.8 | 55.6 | 2 % |
| Cable subscription revenue | 361.4 | 361.7 | — % |
| Mobile telephony | 113.6 | 107.2 | 6 % |
| Total subscription revenue | 475.0 | 468.9 | 1 % |
| Business services | 50.0 | 52.1 | (4) % |
| Other | 128.0 | 105.0 | 22 % |
| Total Revenue | 653.0 | 626.0 | 4 % |
| Expenses by Nature | |||
| Network operating expenses | (54.3) | (54.3) | — % |
| Direct costs (programming, copyrights, interconnect and other) | (130.3) | (127.0) | 3 % |
| Staff-related expenses | (68.7) | (64.5) | 7 % |
| Sales and marketing expenses | (21.2) | (23.5) | (10) % |
| Outsourced labor and Professional services | (9.5) | (9.0) | 6 % |
| Other indirect expenses | (23.4) | (28.2) | (17) % |
| Restructuring charges | (1.0) | (0.4) | 150 % |
| Operating charges related to acquisitions or divestitures | (1.1) | (0.4) | 175 % |
| Share-based payments granted to directors and employees | (1.8) | (2.5) | (28) % |
| Depreciation | (100.7) | (103.5) | (3) % |
| Amortization | (45.8) | (42.0) | 9 % |
| Amortization of broadcasting rights | (39.6) | (20.0) | 98 % |
| Impairment of long-lived assets - Intangible assets and goodwill | (2.8) | — | 100% |
| Gain on disposal of subsidiaries | 2.1 | 0.4 | 425 % |
| Impairment of long-lived assets - Property and equipment | (1.7) | (0.2) | 750 % |
| Total Expenses | (499.8) | (475.1) | 5 % |
N.M. - Not Meaningful
| For the three months ended | |||
|---|---|---|---|
| (€ in millions) | March 31, | ||
| 2020 | 2019 | Change % | |
| Cash flows from operating activities | |||
| Profit for the period | 153.2 | 14.0 | 994 % |
| Depreciation, amortization, impairment and restructuring charges | 189.5 | 165.7 | 14 % |
| Working capital changes and other non cash items | 32.0 | 97.7 | (67) % |
| Income tax expense | 6.2 | 20.9 | (70) % |
| Net interest expense, foreign exchange loss and other finance expenses | 128.1 | 117.6 | 9 % |
| Net loss (gain) on derivative financial instruments | (151.9) | (3.8) | 3,897 % |
| Loss on extinguishment of debt | 18.0 | — | —% |
| Loss (gain) on disposal of assets related to a joint venture | — | (0.1) | (100) % |
| Cash interest expenses and cash derivatives | (92.3) | (90.1) | 2 % |
| Income taxes paid | (0.3) | (156.4) | (100) % |
| Net cash from operating activities | 282.5 | 165.5 | 71 % |
| Cash flows from investing activities | |||
| Purchases of property and equipment | (71.5) | (73.1) | (2) % |
| Purchases of intangibles | (46.0) | (29.5) | 56 % |
| Acquisitions of and loans to equity accounted investees | (0.2) | (0.2) | — % |
| Proceeds from sale of property and equipment | 0.3 | 0.5 | (40) % |
| Net cash used in investing activities | (117.4) | (102.3) | 15 % |
| Cash flows from financing activities | |||
| Repayments of loans and borrowings | (137.5) | (192.0) | (28) % |
| Proceeds from loans and borrowings | 81.8 | 154.3 | (47) % |
| Repurchase of own shares | (29.0) | (50.4) | (42) % |
| Sale of own shares | — | 6.2 | (100) % |
| Payments for debt issuance costs | (10.6) | — | —% |
| Other financing activities (incl. leases) | (33.7) | (22.3) | 51 % |
| Net cash used in financing activities | (129.0) | (104.2) | 24 % |
| Net increase (decrease) in cash and cash equivalents | |||
| Cash at beginning of period | 101.4 | 88.2 | 15 % |
| Cash at end of period | 137.5 | 47.2 | 191 % |
| Net cash generated (used) | 36.1 | (41.0) | N.M. |
| For the three months ended | ||||
|---|---|---|---|---|
| (€ in millions) | March 31, | |||
| 2020 | 2019 | Change % | ||
| Adjusted Free Cash Flow | ||||
| Net cash from operating activities | 282.5 | 165.5 | 71 % | |
| Cash payments for direct acquisition and divestiture costs | 0.2 | 0.2 | — % | |
| Expenses financed by an intermediary | 81.8 | 59.3 | 38 % | |
| Purchases of property and equipment | (71.5) | (73.1) | (2) % | |
| Purchases of intangibles | (46.0) | (29.5) | 56 % | |
| Principal payments on amounts financed by vendors and intermediaries | (136.5) | (83.5) | 63 % | |
| Principal payments on leases (excluding network-related leases assumed in acquisitions) | (13.1) | (13.3) | (2) % | |
| Principal payments on post acquisition additions to network leases | (14.0) | (5.8) | 141 % | |
| Adjusted Free Cash Flow | 83.4 | 19.8 | 321 % |
N.M. - Not Meaningful
| March 31, | December 31, | Change | |
|---|---|---|---|
| (€ in millions) | 2020 | 2019 - Restated | |
| ASSETS | |||
| Non-current Assets: | |||
| Property and equipment | 2,352.7 | 2,366.8 | (14.1) |
| Goodwill | 1,856.6 | 1,879.2 | (22.6) |
| Other intangible assets | 755.2 | 790.3 | (35.1) |
| Deferred tax assets | 233.0 | 261.4 | (28.4) |
| Investments in and loans to equity accounted investees | 16.9 | 16.3 | 0.6 |
| Other investments | 6.1 | 6.1 | — |
| Derivative financial instruments | 133.8 | 55.3 | 78.5 |
| Other assets | 27.5 | 27.9 | (0.4) |
| Total non-current assets | 5,381.8 | 5,403.3 | (21.5) |
| Current Assets: | |||
| Inventories | 33.9 | 25.2 | 8.7 |
| Trade receivables | 204.8 | 204.5 | 0.3 |
| Other current assets | 162.2 | 130.4 | 31.8 |
| Cash and cash equivalents | 137.5 | 101.4 | 36.1 |
| Derivative financial instruments | 51.6 | 61.7 | (10.1) |
| 590.0 | 523.2 | 66.8 | |
| Assets held for sale | 51.7 | — | 51.7 |
| Total current assets | 641.7 | 523.2 | 118.5 |
| TOTAL ASSETS | 6,023.5 | 5,926.5 | 97.0 |
| March 31, | December 31, | ||
|---|---|---|---|
| (€ in millions) | 2020 | 2019 - Restated | Change |
| EQUITY AND LIABILITIES | |||
| Equity: | |||
| Share capital | 12.8 | 12.8 | — |
| Share premium | 80.7 | 80.7 | — |
| Other reserves | 663.2 | 695.7 | (32.5) |
| Retained loss | (2,134.8) | (2,287.8) | 153.0 |
| Remeasurements | (13.5) | (13.5) | — |
| Total equity attributable to owners of the Company | (1,391.6) | (1,512.1) | 120.5 |
| Non-controlling interests | 25.0 | 25.1 | (0.1) |
| Total equity | (1,366.6) | (1,487.0) | 120.4 |
| Non-current Liabilities: | |||
| Loans and borrowings | 5,219.3 | 5,206.0 | 13.3 |
| Derivative financial instruments | 183.5 | 261.4 | (77.9) |
| Deferred revenue | 3.8 | 3.8 | — |
| Deferred tax liabilities | 164.1 | 177.0 | (12.9) |
| Other non-current liabilities | 64.5 | 63.0 | 1.5 |
| Provisions | 15.5 | 17.7 | (2.2) |
| Total non-current liabilities | 5,650.7 | 5,728.9 | (78.2) |
| Current Liabilities: | |||
| Loans and borrowings | 519.4 | 527.0 | (7.6) |
| Trade payables | 249.1 | 247.7 | 1.4 |
| Accrued expenses and other current liabilities | 479.6 | 418.4 | 61.2 |
| Provisions | 79.3 | 70.9 | 8.4 |
| Deferred revenue | 119.0 | 107.8 | 11.2 |
| Derivative financial instruments | 56.5 | 69.5 | (13.0) |
| Current tax liability | 224.8 | 243.3 | (18.5) |
| 1,727.7 | 1,684.6 | 43.1 | |
| Liabilities directly associated with the assets held for sale | 11.7 | — | 11.7 |
| Total current liabilities | 1,739.4 | 1,684.6 | 54.8 |
| Total liabilities | 7,390.1 | 7,413.5 | (23.4) |
| TOTAL EQUITY AND LIABILITIES | 6,023.5 | 5,926.5 | 97.0 |
a mobile handset and a data plan for a laptop (via a dongle) would be counted as two mobile subscribers. Customers who do not pay a recurring monthly fee are excluded from Telenet's mobile telephony subscriber counts after a 90-day inactivity period.
Investor & Analyst call – Telenet will host a video webcast and conference call for institutional investors and analysts on April 30, 2020 at 3:00pm CET, For details and webcast links, please visit: https://investors.telenet.be.
Contacts
| Investor Relations: | Rob Goyens | [email protected] | Phone: +32 15 333 054 |
|---|---|---|---|
| Bart Boone | [email protected] | Phone: +32 15 333 738 | |
| Press & Media Relations: | Stefan Coenjaerts | [email protected] | Phone: +32 15 335 006 |
This document has been released on April 30, 2020 at 7:00am CET
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