Belgacom 1Q profit drops on lower connection charges

16 May 2008

Belgacom has reported that first quarter profit fell 26%, as a result of lower connection charges and the effect of one-off gains from asset sales in 1Q 2007. Net income dropped to EUR236 million (USD365.5 million) from EUR319 million a year earlier. Revenue declined 3% to EUR1.47 billion. In a statement the company said it is trying to offset lower voice telephony sales by offering more broadband Internet and television services. Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 3.4% to EUR518 million, keeping to its EBITDA margin forecast of between 33% and 34% of sales.

Belgacom moved to a new reporting structure at the start of this year, with Consumer Business Unit (CBU) and Enterprise Business Unit (EBU) being the two biggest divisions. CBU reported a 1.3% fall in turnover in the first three months of 2008 to EUR548 million, while EBU saw a 2.5% decline to EUR675 million.

Belgium, Proximus