Belgium’s Telenet expects stable profit in 2023

Telenet expects a stable core profit in 2023 as it offsets higher wages and inflation with cost control and targeted rate increases, the Belgian telecoms firm said on Thursday.

The group said its adjusted earnings before interest, taxes, depreciation and amortisation and after leases should be broadly in line with the rebased 1.24 billion euros ($1.33 billion) it earned in 2022.

Telenet provided rebased figures as it changed its accounting standard in mid-2022.

It is aiming for revenue growth of 1% to 2% on a rebased basis, or between 7% and 8% on a reported basis.

The group warned it expects mandatory wage indexation in Belgium to result in a significant increase in its staff-related expenses in 2023 and higher energy costs.

Its energy expenses jumped by around 70% in 2022 as a result of the war in Ukraine.

It expects its capital expenditure to amount to around 26% of revenue this year as it rolls out a 5G network.

It is also investing in IT and product development to prepare for a launch in Belgium’s Wallonia region in early 2024, where last month Orange agreed to provide it wholesale access to the network of Belgian peer VOO.

Orange is set to acquire VOO and is working to resolve EU concerns about the deal.

Price rises last summer boosted Telenet’s revenue, which came in at 2.67 billion euros, in line with its guidance and slightly ahead of analyst estimates of 2.63 in a company-compiled poll.

Net profit jumped 153% to 997.0 million euros, as it pocketed gains from the sale of its tower business. Reuters