Belgacom betters expectations, but earnings still slide

19 May 2006

Belgacom, Belgium’s dominant telecoms operator, has posted losses in first quarter EBITDA and sales, and maintained its negative forecast for the full year, reiterating that it expects a 3% revenue decline in both its fixed line and mobile businesses as competition increases. The telco said sales fell 4.5% to EUR1.507 billion in the three months ended 31 March, while earnings before interest tax depreciation and amortisation (EBITDA) were down 6.2% to EUR545 million. This is the first time the company has published first-quarter figures, but both sales and EBITDA came in ahead of analysts’ expectations. Belgacom Mobile, which is the market leader in Belgium offering services under the brand name Proximus, saw sales fall 0.6% in the first quarter, whilst turnover from fixed line services decreased 2.8%.

Belgium, Proximus