Net profit drops in 1Q09 for Belgacom; full-year guidance reiterated

15 May 2009

Belgacom, Belgium’s incumbent fixed line and broadband provider, has released financial results for the three months ended 31 March 2009, posting a 10.1% drop in net profit for the period. The operator reported net income of EUR212 million (USD277.3 million), down from EUR236 million at end-March 2008, while earnings before interest, tax, depreciation and amortisation (EBITDA) fell 5.1% year-on-year to EUR492 million. Revenues, meanwhile, rose by just 1.5% to EUR1.49 billion, with the operator noting that the nature of revenue growth had led to an increase in the cost of sales; it hopes to mitigate these costs with a cost efficiency programme. Following the results Belgacom reiterated its guidance for the 2009 fiscal year, stating that it expects revenue to fall by 1% over the twelve-month period, while EBITDA margin will be between 32%-33%, down from 33.3% in full-year 2008.

Belgium, Proximus