Oct. 27 (Bloomberg) -- Telenet Group Holding NV, the Belgian cable operator controlled by Liberty Global Inc., raised its profit forecast as customers sign up to more products and higher-priced broadband Internet and mobile-telephony contracts.
Adjusted earnings before interest, tax, depreciation and amortization, or Ebitda, will increase 7.5 percent to about 719 million euros ($1.02 billion) this year, the Mechelen, Belgium- based company said today in a statement. That compares with an earlier forecast of at least 706 million euros and analyst projections of 714 million euros, the average of 22 estimates compiled by Bloomberg.
Telenet’s revenue growth excluding acquisitions accelerated to 5 percent in the three months through September and Chief Executive Officer Duco Sickinghe forecast a further quickening in the current quarter, assisted by price increases for cable TV and broadband Internet. The cable operator said more clients signed up to higher-priced broadband and mobile-telephony rate plans and the conversion of TV subscribers to a digital offering boosted revenue from video-on-demand services.
“Sales were a bit soft in July and August, but rebounded in September,” Sickinghe told reporters in Mechelen. “Our growth will be driven by triple play, Fibernet broadband, video on demand, price increases and our sports broadcasts.”
More than 40 percent of customers buying broadband Internet this year signed up to the higher-priced and faster Fibernet product, prompting Telenet to increase its forecast for capital spending to about 22 percent of sales from 21 percent earlier. The cable operator maintained its guidance that cash generation not required for reinvestment will exceed 240 million euros.
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