Tear Sheet: Telenet Group Holding N.V.

This report does not constitute a rating action. We expect credit measures to remain close to the downside threshold for our stand-alone credit profile (SACP) rating on Telenet, with no headroom for underperformance. Based on the guidance, we expect S&P Global Ratings-adjusted leverage to remain at about 5x for the next few years, and negative free operating cash flow (FOCF) from high capital expenditure (capex) related to fiber upgrades. As a result, we do not anticipate material deleveraging despite expecting EBITDA to grow modestly from 2026. Digi Belgium, the country's fourth and newest telecom operator, jointly owned by Digi and CityMesh, launched in December 2024. Digi has entered the market with aggressive pricing for consumer mobile-only and broadband services, and

...April 16, 2025 This report does not constitute a rating action. Telnet Group Holding's weaker-than-expected 2025 guidance reflects the increasingly challenging operating environment in Belgium's mobile market. We expect credit measures to remain close to the downside threshold for our stand-alone credit profile (SACP) rating on Telenet, with no headroom for underperformance. Based on the guidance, we expect S&P Global Ratings-adjusted leverage to remain at about 5x for the next few years, and negative free operating cash flow (FOCF) from high capital expenditure (capex) related to fiber upgrades. As a result, we do not anticipate material deleveraging despite expecting EBITDA to grow modestly from 2026. We expect the consumer mobile market to get increasingly competitive mainly due to a new competitor's aggressive pricing strategy. Digi Belgium, the country's fourth and newest telecom operator, jointly owned by Digi and CityMesh, launched in December 2024. Digi has entered the market with...

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