Mobistar ups FY2010 guidance following solid 1H results

22 Jul 2010

Belgian mobile network operator Mobistar has released its financial results for the six months ended 30 June 2010, with the company posting increased revenues and earnings before interest, tax, depreciation and amortisation (EBITDA). Consolidated service revenue for the six-month period stood at EUR760.8 million (USD975 million), up 6.7% year-on-year compared to the EUR713.3 million the operator generated a year earlier, with Mobistar attributing the growth to increased smartphone sales and higher levels of data usage. While EBITDA margin on service revenues declined to 37%, down from 39% a year earlier, on the back of an increase in offers including unlimited SMS traffic and investments in fixed line activities, EBITDA in the first half of 2010 rose 1.1% to EUR281.6 million. Net profit meanwhile rose 3% y-o-y to EUR132.4 million.

In line with the results Mobistar has raised its FY2010 guidance, upping its forecast for revenue growth to around 5%, up from a previous guidance of being at least equal to FY2009 revenue. Likewise, guidance for both net profit and EBITDA have been increased, with the latter targeted at between EUR225 million and EUR245 million (against the previous EUR210-EUR230 million forecast), while EBITDA is now expected to be between EUR520 million and EUR540 million (up from EUR500-EUR520 million).

Mobistar also confirmed that it has lodged an appeal with the Court of Appeal in Brussels over the Belgian Institute for Post and Telecommunication’s (BIPT’s) decision to reduce mobile termination rates (MTRs) from August 2010. The operator is arguing that the regulator’s decision is ‘discriminatory and has a market-distorting effect’.

Belgium, Orange Belgium