Outlook

Having achieved flat rebased revenue growth and 5% rebased Adjusted EBITDA growth for the first six months of 2017, we remain on track to deliver on our full year 2017 outlook post the SFR BeLux acquisition, including our medium-term commitment to deliver 5-7% Adjusted EBITDA growth over the 2015-2018 period.

As in the first half of the year, our rebased revenue growth in the second half of 2017 will continue to be affected by certain regulatory headwinds as we communicated in February this year. At the same time, our mobile business will continue to be impacted by (i) lower out-of-bundle revenue, (ii) structural challenges in the prepaid segment, including the effects of the prepaid registration, (iii) lower interconnection revenue (including roaming) and (iv) lower revenue generated from handset sales. These headwinds will be broadly offset by continued solid growth in both our cable subscription revenue and our B2B revenue.

Having achieved 5% rebased Adjusted EBITDA growth over the first six months of 2017, we remain on track to achieve mid-single-digit rebased growth for the full year of 2017 despite adverse roaming and competitive impacts which will be offset by continued synergies from the BASE acquisition and tight cost management.

Relative to the first six months of 2017, we expect our accrued capital expenditures to represent a greater proportion of our revenue on the back of the ongoing upgrade to both our fixed and mobile infrastructures. Moreover, we will also start investing in the acquired SFR BeLux network to improve the overall customer experience including the start of the "Grote Netwerf" program in Brussels. Note that our full year 2017 outlook excludes the recognition of the Belgian football (See 3.3 Subsequent Events).

Finally, we delivered €137.1 million of Adjusted Free Cash Flow in H1 2017 as the negative impact of higher cash taxes has been more than offset by (i) robust rebased Adjusted EBITDA growth, (ii) lower cash interest expenses following certain refinancings, (iii) the start of our vendor financing platform since Q3 last year and (iv) an improved trend in our working capital. As a result, we remain on track to achieve an Adjusted Free Cash Flow between €350.0 and 375.0 million for the full year.

Outlook FY 2017