Telenet : Full Year 2017 Results

• FY 2017 outlook outperformed with us being well on track to deliver on our medium-term rebased Adjusted EBITDA(a) CAGR over the 2015-2018 period, now targeting 6-7% versus 5-7% initially.
• Continued traction for our quad-play 'WIGO' bundles post the June 2017 revamp with 38,500 net subscribers added in Q4 2017 despite a competitive environment to nearly 304,000 subscribers.
• Accelerated onboarding of Full MVNO customers to the upgraded Telenet network with around 90% achieved at the end of 2017. 5-year MVNO agreement signed with Walloon cable operator VOO.

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.

Brussels, February 13, 2018 - 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 the year ended December 31, 2017.

HIGHLIGHTS

FY 2017 revenue(2) of €2,528.1 million (+4% yoy) driven by the BASE and SFR Belux acquisitions and the sale of Ortel. Our rebased(1) FY 2017 revenue was up 1% with an increased contribution from our wholesale business, higher cable subscription and B2B revenue being partially offset by lower mobile telephony revenue, the impact from regulatory headwinds and lower handset-related revenue. Q4 2017 revenue of €643.8 million, up 2% yoy on a reported basis, including a full quarter contribution from SFR Belux, and up 1% on a rebased basis.

Modestly improved net subscriber trend for our advanced fixed services of enhanced video, broadband internet and fixed-line telephony on a sequential basis in Q4 2017 despite a continued intensely competitive environment and a tough promotional quarter, driven by our attractive year-end marketing campaigns and promotions.

Robust net postpaid subscriber growth in Q4 2017 (+43,800) thanks to 'WIGO' and accelerated demand for BASE's new postpaid portfolio with postpaid now representing around 82% of our active mobile customer base.

Net profit of €113.8 million for FY 2017 versus €41.6 million in 2016. Net profit for FY 2017 was driven by (i) the increase in Adjusted EBITDA, as discussed below, (ii) a €245.5 million non-cash foreign exchange gain on our USD-denominated debt, (iii) a €243.0 million non-cash loss on our derivatives (iv) a €76.0 million loss on the extinguishment of debt following certain refinancings and (v) the aforementioned accelerated onboarding of our Full MVNO customer base having resulted in a €29.2 million restructuring charge in Q3 2017.

Adjusted EBITDA(3) of €1,209.9 million for FY 2017, +8% yoy on a reported basis and +6% yoy on a rebased basis. Our Adjusted EBITDA growth was primarily driven by (i) lower costs associated with handset sales and subsidies, (ii) lower MVNO-related costs driven by the accelerated onboarding of our Full MVNO customers, (iii) lower integration and transformation costs versus the prior year and (iv) continued overall control of our overhead expenses, increasing our margin by 240 basis points yoy on a rebased basis. Adjusted EBITDA of €298.7 million in Q4 2017, +9% yoy on a rebased basis.

Accrued capital expenditures(4) of €729.2 million for FY 2017 reflected the recognition of the Belgian football broadcasting rights for three seasons as of the 2017-2018 season. Excluding this impact, accrued capital expenditures represented approximately 25% of our revenue, reflecting higher network-related investments.

Net cash from operating activities, net cash used in investing activities and net cash used in financing activities of €831.6 million, €841.0 million and €50.7 million, respectively, for FY 2017. Adjusted Free Cash Flow(5) of €381.8 million for FY 2017, up 44% yoy (Q4 2017: €36.4 million), as compared to our outlook of €350.0-375.0 million.

For 2018, we target healthy financial growth with rebased Adjusted EBITDA(a) growth of 7-8% leading to an improved rebased Adjusted EBITDA(a) CAGR of 6-7% over the 2015-2018 period versus 5-7% initially. Against stable rebased revenue growth, we expect our accrued capital expenditures to represent around 26% of our revenue in 2018, leading to robust Adjusted Free Cash Flow(b) of €400.0-420.0 million for 2018.

The board of directors has redefined the Company's leverage framework at 3.5x-4.5x net total leverage(17) (December 31, 2017: 3.9x). The board of directors has considered different forms of shareholder remuneration in view of the Company's full year results, balance sheet and leverage framework, but has for now not decided on any other form of distribution with the exception of the Share Repurchase Program 2018. The board of directors will continue to assess potential shareholder distributions throughout the course of the year. Currently, the board of directors has authorized a share buy-back program of up to €75.0 million (the 'Share Repurchase Program 2018'), effective as of February 13, 2018.

(a) A reconciliation of our Adjusted EBITDA guidance for 2018, and our Adjusted EBITDA CAGR for 2015-2018, 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 Free Cash Flow guidance for 2018 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.