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Telenet NV (EBR:TNET) Mechelen, October 9, 2008 - As announced on October 1, 2008, Telenet Group Holding NV ("Telenet" or the "Company") (Euronext Brussels: TNET) closed the transaction with the Public Cable Companies and Interkabel (hereafter named the "PICs"), under which Telenet acquired the analog and digital subscriber base and certain other assets from the PICs and entered into a long-term capital lease agreement with respect to the PICs network.
HIGHLIGHTS
* Footprint for digital and analog television activities extended by 0.8 million to 2.7 million, similar to our broadband internet and fixed telephony footprint; * Enables revenue synergies through unified service offering across entire Flanders area; * Launch of interactive digital TV product and new triple play bundled offerings scheduled for October 15, 2008, expected to yield an increase in revenue per unique customer in the PICs area; * Activities merged as of October 1, 2008, adding 762,500 television subscribers on that date; * Telenet expects the acquired assets to generate ~€22-25 million of revenue and ~€10-12 million of EBITDA (before considering estimated product launch and one-off marketing costs of approximately €5-6 million) in Q4 2008; * Full year outlook upgraded based on continued solid organic performance to date and the inclusion of the PICs activities from October 1, 2008: revenue growth of 8-9%, EBITDA growth of 10-12% and capital expenditures of €185-195 million (excluding set top box rentals); * Upfront cash payment of €230 million funded by excess cash of €145 million and by additional drawdown of €85 million from our Senior Credit Facility under the committed and available Revolving Facility; * Pro-forma ratio of net senior debt at December 31, 2008 to Q4 2008 annualized EBITDA expected to be less than 4.0x.
