Outlook

Relative to a modest rebased top line decrease and a solid 5% rebased Adjusted EBITDA growth for the first three months of 2018, we anticipate our financial performance to improve throughout the year as (i) some of the regulatory headwinds are expected to abate, (ii) the onboarding of our Full MVNO customers has been substantially completed at the end of Q1 2018 and (iii) we will continue our focus on tight cost control. Hence, we remain on track to reach our FY 2018 outlook as presented mid-February. As a reminder, our 2018 outlook does not yet capture the impacts from the Nextel and De Vijver Media acquisitions as these are pending regulatory approval.

Our rebased top line trend will continue to be impacted throughout the year by certain adverse regulatory headwinds and the intensely competitive environment, which we expect to be partially offset by solid growth in our underlying cable subscription revenue and a higher contribution from our B2B business and commercial MVNO partnerships. For the full year 2018, we continue to anticipate stable revenue growth on a rebased basis.

In 2018, our full year Adjusted EBITDA(a) will be positively influenced by the continued synergies from the BASE acquisition, including lower Full MVNO-related costs as we substantially completed the full onboarding of our Full MVNO subscribers to the Telenet network at the end of Q1 2018. In addition, we will continue to focus on carefully managing our overhead expenses and indirect spend. As such, we continue to target 7-8% rebased Adjusted EBITDA growth for the full year, leading to an improved Adjusted EBITDA(a) CAGR of 6-7% over the 2015-2018 period.

As far as our accrued capital expenditures are concerned, 2018 will be the final full year in our investment cycle characterized by relatively high investments on the back of (i) our five-year €500.0 million "Grote Netwerf" HFC network upgrade program, (ii) our €250.0 million investment in the modernization of our acquired mobile network, (iii) a full-year inclusion of SFR Belux, including on-top investments to improve the customer experience in Brussels and Wallonia, and (iv) the start of our IT platform upgrade plan, leading to additional innovative digital capabilities and cost opportunities going forward. We continue to target an accrued capital expenditures to revenue ratio of around 26% for the full year 2018, with a firm commitment to decrease our accrued capital expenditure levels as of 2019.

Finally, we continue to expect a healthy growth in our Adjusted Free Cash Flow(b) for 2018 to €400.0-420.0 million driven by (i) robust Adjusted EBITDA(a) growth as mentioned above, partially offset by higher capital expenditures, (ii) lower cash interest expenses as a result of the December 2017 refinancing and (iii) continued growth in our vendor financing platform through which we are able to extend payment terms for certain strategic suppliers.