Belgian cable operator Telenet gave details on Monday of a cash payout to shareholders signalled previously, and posted second-quarter core profit slightly above market expectations as customers used more of its services.
EBITDA (earnings before interest, tax, depreciation and amortisation) came in at 111.6 million euros ($154.3 million), against 93.8 million a year earlier and above the 105.3 million euros forecast in a Reuters poll of 4 analysts.
Telenet said it would distribute 6 euros per share to shareholders in the fourth quarter and might give them a further 1 to 2 euros in the next six to nine months, depending on acquisition and investment opportunities.
"We want to have some additional fire power available in the upcoming future," Vincent Bruyneel, head of merger and acquisitions told Reuters on the margins of a press conference. The company had previously said it planned to distribute between 5 and 8 euros after a capital decrease and debt refinancing.
The refinancing plan got mixed reactions when announced a month ago as analysts said it made a buyout by a private equity firm or an industry buyer unlikely and could potentially hinder the company's ability to finance growth in the future. Telenet also played down any interest in buying Tele2 Belgium, the fixed line operations of Swedish telecoms group Tele2, for which Dutch telecoms group KPN is tipped as a buyer.
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