Telenet Group has revealed its 5G network roll out plans and Capex for fiber and digital platforms in 2023.
Telenet said its Capex to revenue ratio in 2023 will be around 26 percent as it aims to spend on 5G roll-out, fiber deployments and trench sharing opportunities and preparatory investments in IT and product development to prepare for the launch in Wallonia in 2024, following the wholesale agreement with Orange Belgium.

In 2022, Telenet’s Capex intensity increased to approximately 25 percent of revenue driven spending on 5G network, investments in data and digital platforms as well as fiber investments in certain areas.

Micha Berger is the Chief Technology Officer (CTO) of Telenet, responsible for allocating funds for the expansion of networks.

“Approximately 74 percent of our revenue came from monthly recurring subscriptions, while approximately 60 percent of our revenue benefited from the 4.7 percent rate adjustment as of mid-June 2022,” John Porter,Chief Executive Officer of Telenet, said in its earnings report.

“Growth in our broadband and mobile telephony revenue of 3 percent and 6 percent, respectively, more than offset declines of 6 percent and 2 percent, respectively, in our fixed line telephony and video revenue,” Erik Van den Enden, Chief Financial Officer of Telenet, said.

Telenet’s Capex for 2022 reached €1,419.3 million, more than doubling from 2021 and equivalent to approximately 53 percent of revenue over the period. Telenet’s Capex includes €434.8 million for multiband mobile spectrum licenses.

Excluding spectrum and broadcasting rights, Telenet’s Capex for 2022 were €656.3 million, equivalent to approximately 25 percent of revenue in line with financial outlook, and representing a more moderate 21 percent increase.

Telenet’s Capex for customer premises equipment, which includes set-top boxes, modems and WiFi powerlines were €120.6 million (+28 percent) in 2022, driven by targeted set-top box and modem swap programs in addition to the roll-out of in-home connectivity devices.

Telenet’s Capex for network growth and upgrades were €125.8 million (+82 percent) for 2022, reflecting the start of 5G roll-out and fiber-related investments.

Telenet’s investments in product development and the upgrade of IT platforms and systems, totaled €166.3 million (+4 percent) in 2022.

Spending on refurbishments and replacements of network equipment and recurring investments in IT platform and systems reached €243.6 million (+18 percent).

Telenet said 62 percent of capital expenditures for 2022 were scalable and subscriber growth related.

Telenet added 73,800 FMC subscribers, 45,300 mobile postpaid customers and 5,000 broadband subscribers.

Telenet reported revenue of €2.665 billion (+3 percent) and net profit of €997 million for the year ended December 31, 2022.