New Telenet upgrades on “historic transaction” -
Telenet upgrades on “historic transaction”
Telenet has upgraded its financial outlook following the recent purchase of the analogue and digital subscriber base belonging to Interkabel and the municipal cable companies. The October 1 integration added 762,500 TV subs.
The company is now looking towards full year revenue growth of between 8 and 9%, EBITDA growth between 10 and 12% and capital expenditures between €185 and €195 million, excluding set-top box rentals.
“We are very pleased to have closed this historic transaction, consolidating the cable landscape in Flanders,” said Telenet CEO Duco Sickinghe. “We embrace the opportunities this will create for consumers in the Interkabel area, who will now be able to enjoy our digital TV services, experiencing a rich on demand library, our Prime channels and a variety of innovative interactive applications, next to the broadband and fixed telephony services we already offer.”
Sickinghe emphasised that the transaction was being funded by drawing on a small portion (€85 million) of Telenet’s remaining Senior Credit Facility. The remainder of the €230 million purchase price is being drawn from excess cash. The facility does not require any changes in interest rates or maturities until 2012.
Former Interkabel customers will now be presented with Telenet’s triple play offer following the October 1 integration. This includes the so-called Gold Shake that combines broadband, telephony and digital TV.