Telenet is the largest cable television operator in Belgium. Telenet's hybrid fiber-coaxial cable network spans the Flanders region, covers 61% of Belgium by homes passed and includes the metropolitan centers of Antwerp and Ghent and approximately one-third of Brussels.
Telenet offers analog and digital cable television and digital pay television, including high definition and on-demand television, high-speed broadband internet and fixed and mobile telephony services to residential subscribers who reside in Telenet's network area. In addition, Telenet offers voice and data services to small and medium sized businesses and larger corporate throughout Belgium and parts of Luxembourg under the Telenet for Business brand name.
Telenet’s ISIN code (International Securities Identification Number) is BE0003826436.
How can I purchase Telenet’s common stock?
You can purchase Telenet’s common stock on the open market through any registered bank or broker.
What are Liquidation Dispreference Shares?
At present, there are 94,843 Liquidation Dispreference Shares. These shares are held by Interkabel (the pure intermunicipalities) and the Liberty Global Consortium. The Liquidation Dispreference Shares have the same rights as the ordinary shares except for the fact that they are subject to an €8.02 liquidation dispreference, such that in any liquidation of Telenet Group Holding NV the Liquidation Dispreference Shares would only participate in the portion of the proceeds of the liquidation that exceeded €8.02 per Share. Liquidation Dispreference Shares may be converted into ordinary Shares at a rate of 1.04. Please see our Corporate Governance Charter for additional information.
What are Golden Shares?
At present, there are 30 Golden Shares. These shares are held by the Financing intermunicipalities, the financing vehicles belonging to the Mixed intermunicipalities from whom Telenet acquired the cable infrastructure in earlier times. The Golden Shares have the same rights as the ordinary shares and which also give their holders the right to appoint representatives to the Regulatory Board, which oversees the public interest guarantees related to Telenet’s offering of digital television. Please visit our Corporate Governance Charter for additional information.
How many Telenet shares are there in issue?
At present, there are 114,922,468 shares outstanding, comprising of:
Ordinary shares: 114,827,595;
Liquidation Dispreference Shares: 94,843;
Golden Shares: 30.
At present, the Company’s free float amounts to 42.06%. Please visit our Shareholder structure for the latest information.
How many Telenet shares are listed?
Only the ordinary shares are listed. The Liquidation Dispreference Shares and the Golden Shares are not listed.
Who are Telenet’s main shareholders?
Liberty Global plc is Telenet's controlling shareholder and as of July 10, 2013, held a majority ownership interest in Telenet of 57.73%. Liberty Global is the largest international cable company, with operations in 14 countries. Liberty Global's television, broadband internet and telephony services are provided through next-generation networks and innovative technology platforms that connected 24.5 million customers who subscribed to 47.5 million services as of June 30, 2013. Liberty Global's consumer brands include Virgin Media, UPC, Unitymedia, Kabel BW, Telenet and VTR. Its operations also include Chellomedia, its content division, Liberty Global Business Services, its commercial services division, and Liberty Global Ventures, its investment fund.
Norges Bank is Telenet's second-largest shareholder. Norges Bank Investment Management (NBIM) manages the Norwegian Government Pension Fund Global. As of July 10, 2013, Norges Bank owned 5,297,087 shares of the Company, equivalent to an ownership stake of 4.61%.
BNP Paribas Investment Partners SA, formerly referred to as Fortis Investment Management SA, is Telenet's third-largest shareholder with an ownership interest of 3.34% as of July 10, 2013.
Telenet's fourth-largest institutional shareholder is Omega Advisors, a US-based hedge fund with USD 8.9 billion under management as of July 31, 2013. As of July 10, 2013, Omega Advisors held a 3.31% direct ownership stake in the Company.
In March 2012, Telenet was added to the FTSE4Good index, a leading international benchmark in the field of CSR.
On May 31, 2012, Telenet joined the prestigious MSCI Belgium index.
On June 27, 2013, Telenet was included in the newly launched Euronext Vigeo Benelux 20 and Euronext Vigeo Euronext 120 indices. These ESG indices include the companies rated highest for control of corporate responsibility risk and contributions to sustainable development. Performance is measured by the Equitics method pioneered by Vigeo. Ratings are based on 38 criteria including respect for the environment; human rights and recognition of companies' human capital; relations with stakeholders (clients, suppliers, employees, shareholders, etc.); corporate governance and business ethics; integrity in influencing policy and efforts to fight corruption; and the prevention of social and environmental dumping in the supply and subcontracting chain.
When was Telenet first traded?
Telenet was first traded on the Euronext Brussels stock exchange on October 11, 2005. The stock’s IPO (initial public offering) price was €21.0 (unadjusted for past capital reductions and/or dividends). Please visit our Shareholder Disbursements section for a complete overview of past shareholder disbursements.
Where can I find your most recent financial results?
Where can I find historical financial information?
Please visit our Financial Fundamentals section for an overview of our past operational and financial performance. Alternatively, you can obtain our latest Investor & Analyst Toolkit, containing detailed historical quarterly and (semi-)annual information on our operational and financial performance, directly from the Results Center.
When does Telenet report its financial results?
Please visit our Financial Calendar for all upcoming events and keep track of our events through your free subscription to our calendar service.
When is Telenet’s closed period?
From the end of the quarter, half year or full year until the effective release of the financial results, Telenet will be in a closed period. During this time, Telenet will not engage in meetings with investors and analysts, host senior management roadshows, make presentations at broker conferences, or hold discussions/conference calls with investors and analysts.
How can I subscribe to your future press releases?
To receive all of our future press releases, please register here.
Does Telenet pay a dividend?
In the absence of acquisitions and/or a significant change in its business model, the Company's view is to return excess cash to shareholders. The Company had access to €272.1 million in excess cash and unutilized capacity under its revolving credit facility at June 30, 2013. The Company confirms its intention that future shareholder remuneration will consist mainly of share repurchases.
On August 9, 2011, Telenet announced the initiation of a share repurchase program, referred to as "Share Repurchase Program 2011". Under this program, Telenet intended to repurchase up to 1 million of its outstanding ordinary shares within the next nine months. To date, the Company has repurchased 220,352 shares under this specific program. All repurchased shares will be held by the Company to cover the Company's obligations under existing stock options plans.
On February 16, 2012, Telenet announced the initiation, as of February 20, 2012, of a second share repurchase program, referred to as "Share Repurchase Program 2012". Under this program, Telenet intended to repurchase up to maximum 3 million of its outstanding ordinary shares, for a maximum consideration of €50.0 million, within the next six months. The Share Repurchase Program 2012 replaced the previously approved Share Repurchase Program 2011, which contained certain maximum price limits that were no longer relevant given changed market circumstances. On April 25, 2012, the extraordinary general shareholders' meeting of Telenet Group Holding NV cancelled 800,492 ordinary shares which had been repurchased under the Share Repurchase Program 2012. The Share Repurchase Program 2012, as announced on February 16, 2012, and which has been executed to the extent of 91% of such amount, has been terminated as of August 11, 2012.
On August 13, Telenet announced the initiation of a share buy-back through a voluntary tender offer for a maximum of 20,673,043 shares, or 18.20% of the share capital1 of Telenet, at a price of €35.00 per share. This price was to be adjusted downwards by the gross amount of any distributions prior to the closing of the tender offer (including the €3.25 per share which was paid on August 31, 2012 pursuant to the capital decrease approved by the extraordinary shareholders' meeting on April 25, 2012) effective as of the date of any such distribution. As a result of the voluntary tender offer by Binan Investments B.V., announced on November 6, 2012 and closed on January 18, 2013 (the "Binan Bid"), the Telenet Self Tender has been cancelled.
On February 11, 2013, the board of directors announced a share repurchase program of up to €50.0 million, which will complement the proposed cash disbursement of €900.0 million. This program will be implemented after the payment of the extraordinary dividend
What is Telenet’s current leverage and what is its leverage framework?
Telenet’s net leverage ratio is calculated as per the 2010 Amended Senior Credit Facility definition, using net total debt, excluding (a) subordinated shareholder loans, (b) capitalized elements of indebtedness under the Clientele and Annuity Fees, (c) any finance leases entered into on or prior to August 1, 2007, and (d) any indebtedness incurred under the network lease entered into with the pure intermunicipalities up to a maximum aggregate amount of €195.0 million, divided by last two quarters’ annualized EBITDA.
On August 13, 2012, Telenet announced its decision to modify its capital structure and adapt its shareholder remuneration policy. Going forward, Telenet intends to increase its Net Total Debt to Annualized EBITDA ratio to approximately 4.5x, which represents the higher end of the 3.5-4.5x net leverage target.
As of June 30, 2013, the outstanding balance of the 2010 Amended Senior Credit Facility and outstanding cash balance resulted in a Net Total Debt to EBITDA ratio of 4.2x compared to 3.4x on December 31, 2012 and 3.5x on March 31, 2013. The increase in the net leverage ratio reflected the payment of the extraordinary dividend to shareholders in early May 2013. The current net leverage ratio is significantly below the covenant of 6.0x and the availability test of 5.0x.
How does Telenet’s debt maturity profile look like?
As of June 30, 2013, Telenet carried a total debt balance (including accrued interest) of €3,873.3 million, of which €1,404.6 million principal amount is owed under the 2010 Amended Senior Credit Facility, €1,300.0 million principal amount is related to the four Notes issued in the year ended December 31, 2010 and the year ended December 31, 2011, and €700.0 million principal amount relates to the Senior Secured Fixed Rate Notes due 2022 and 2024 issued in August 2012. The total debt balance at June 30, 2013 also included €53.3 million for the outstanding portion of the 3G mobile spectrum including accrued interest. The remainder primarily represents the capital lease obligations associated with the Interkabel Acquisition.
Under the Senior Credit Facility the Company has access to the additional committed Revolving Facility of €158.0 million, subject to compliance with the covenants mentioned under FAQ #24, with availability up to and including December 31, 2016.
For a complete overview of our debt maturity profile, please visit the Results Center where you can obtain our latest Investor & Analyst Toolkit and Investor & Analyst Presentation.
What is Telenet’s credit rating?
Telenet currently maintains ratings with Moody's Investors Service, Inc. and Standard & Poor's Ratings Group.
In April 2013, Moody’s downgraded Telenet’s corporate family rating (CFR) from Ba3 to B1. The outlook going forward is stable. Moody’s reconfirmed its rating on Telenet in May 2013.
In February 2013, Standard & Poor's reconfirmed Telenet's long-term corporate credit rating at B+ with a stable outlook.
Where can I find more detailed background information on Telenet’s mobile spectrum?
Background information on Telenet's mobile spectrum can be found here.
How does Telenet account for the acquired Belgian football broadcasting rights?
In June 2011, Telenet acquired certain exclusive broadcasting rights for the Belgian football championship for the three seasons, starting July 2011. As a result, Telenet is able to select and broadcast the three most important league matches of the Jupiler Pro League. As from the 2012-2013 season onwards, Telenet is able to broadcast all league matches, including the five remaining matches on a non-exclusive basis.
The Belgian football broadcasting rights expire in May 2014 and are recorded as an intangible fixed asset (€88.6 million recognized for the full year 2011), net of the contracted resale of certain rights to other operators and broadcasters. They are amortized on a straight-line basis over the duration of the football seasons (each time 10 months, i.e. from August till May the next year) to reflect the pattern of consumption of the economic benefits embodied in the rights. The cash payment occurs in Q1 and Q3 every year, reflecting the upfront payment of certain exclusive broadcasting rights for respectively the first and second part of the current football season.
What does Telenet expect for the current fiscal year 2014?
In 2014, we will continue to focus on what is most valuable to us: our customers and our network. This should result in an amazing customer experience and strengthen our market position as the fastest, most reliable and preferred provider of connectivity and entertainment services. At the same time, we remain vigilant about the intensely competitive environment, the fragile economic recovery, and the likely implementation of regulated cable wholesale access in the second half of 2014, depending on the outcome of our appeal case on the merits which is expected in mid-2014. For 2014, we expect solid top line growth of 6-7% driven by continued growth in both our fixed, mobile and content businesses. Adjusted EBITDA growth for the full year 2014 is seen at 5-6%, reflecting a higher share of lower-margin mobile revenue in our overall revenue mix, higher employee benefit expenses as a result of the mandatory 1.0% wage indexation as of January 2014 and higher direct costs to support our top line growth. At the same time, we will continue to carefully monitor our overall cost levels. Accrued capital expenditures as a percentage of our revenue are expected to further decrease from approximately 23% of revenue for the full year 2013 to between 20-21% of revenue for the full year 2014, excluding the impact from the potential extension of the Belgian football broadcasting rights. Our outlook for accrued capital expenditures reflects continued growth in our mobile business and relatively lower accrued capital expenditures for customer installations, while we continue to invest in a smart manner in our HFC network in order to continue to lead the digital wave in Flanders. Finally, we expect our Free Cash Flow to improve relative to the full year 2013, when our Free Cash Flow performance was impacted amongst others by a change in our working capital policy, which we started implementing in Q4 2013. Solid Adjusted EBITDA growth and a more effective management of our working capital should translate into robust Free Cash Flow growth, partially offset by higher cash tax expenses. For 2014, we expect our Free Cash Flow to grow from €212.4 million in 2013 to between €230.0 million and €240.0 million. Our projected Free Cash Flow for the full year 2014 assumes that the tax payment on our 2013 tax return won’t occur until early 2015, and assumes a flat evolution of our cash interest expenses.
Where can I find the analyst consensus expectations regarding your future results?
Telenet’s Investor Relations Department consistently gathers the opinions, estimates and forecasts from the sell-side research analysts covering the Telenet stock on a quarterly basis prior to the release of the quarterly and (semi-)annual results.
Please visit our Analyst Consensus section for an overview of the most recent analyst expectations.
Where can I find an overview of the sell-side analysts covering your stock?
Please visit our Analyst Information section for a complete overview of the sell-side analysts covering our Company.
How can I contact the Investor Relations department?
You can find the direct contact details of our Investor Relations department on the Contact section of our IR website. You can also submit your question electronically through the e-form.
Telenet remains committed to high-quality and transparent financial reporting and ensures a regular, open and intensive dialog with its shareholders and investors (both institutional and retail), other capital providers and their intermediaries and financial analysts.