Home » today » Business » Telenet has finalized a network deal with Fluvius

Telenet has finalized a network deal with Fluvius

by

19 July 2022

08:34

–

In order to cap the debts during the capital-intensive roll-out of the fiber network to the living room, Telenet is cutting the dividend sharply.

–

Telenet and Fluvius park their existing assets in a network company with the working name NetCo. Telenet participates for 66.8 percent and will therefore consolidate NetCo in its financial accounts, Fluvius has the remaining 33.2 percent.

–

The 2 billion euro investments needed to reach 78 percent of Flemish living rooms by 2038, says Telenet according to the investor presentation fully ‘internally’ financed. So with NetCo’s cash flow and also through the proceeds from the recent sale of the cell tower park.

–

–

During that period, Telenet says it wants to cap the debt burden at 4 times the annual operating profit before depreciation (EBITDA) with substantial investments.

–

That is why there will be an annual dividend threshold of 1 euro gross per share for the period 2023-2029. That is a substantial cut of two-thirds compared to the current dividend policy, whereby Telenet annually sends 2.75 euros gross to the shareholders.

–

Result: since Proximus announced an accelerated roll-out of investments in its network at the end of March 2020, the Belgian telecom duo is lagging far behind the European telecom operators (see chart). The share price of the two has halved since the beginning of 2020 while the European telecom sector – which since the beginning of this year has come to favor with investors – was able to limit the loss to 6 percent over that period.

–

–

Related posts:

New E10 Fuel Standards: Impact on Vehicle Engines and Which Cars are Affected
The hamlet of Kijke is barely visible: 'Is that a right turn at the bakery?'
Record the indexation of pensions 2023 - we have a calculation table. Senior citizens will receive ...
Critical! Startups Purchased Rp. 2.6 Trillion, Allegedly Fraudulent

Russia’s 3 friendly countries, all are reluctant to follow the footsteps of Western sanctions

Samsung launches in Brazil the new Smart Monitor M5 with the Tizen operating system – Video

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.