Belgacom sees lower profit margin in 2009

6 Mar 2009

Belgium’s dominant fixed line and broadband operator Belgacom has released financial results for both the three-month and twelve-month periods ending 31 December 2008, reporting a 1.4% decline in full-year revenues to EUR5.978 billion (USD7.52 billion). By contrast, and against the trend for the other three quarters, revenue in the fourth quarter rose by 2.5% against the same period a year earlier, which the operator attributed to lower financial impact stemming from roaming regulations. Despite the full-year decline, results were in line with expectations, with Belgacom having previously indicated it would see a 2% fall in revenue year-on-year. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 4.2% for the twelve-month period, dropping to EUR1.99 billion, down from EUR2.077 billion. Net profit tumbled 16.6% to EUR799 for the 2008 fiscal year, with Belgacom noting that the decreased EBITDA and capital gains realised in the previous year accounted for the fall. The company also issued its guidance for the coming fiscal year, revealing that it expects revenues to decline by approximately 1% in 2009 as a result of increased competition, regulatory pressure and an unfavourable economic climate.

Belgium, Proximus