BICS consolidation spurs Belgacom revenue growth

29 Oct 2010

Belgium’s fixed line incumbent Belgacom has unveiled its financial results for the nine months ended 30 September 2010, with strong third quarter revenue growth prompting the company to forecast that full year turnover would be at the top end of its previous guidance. In the nine-month period Belgacom generated revenues of EUR4.945 billion (USD6.86 billion), up 10.6% year-on-year, with the company also noting that turnover had risen by 11.1% in the third quarter, although it mainly attributed the positive evolution in turnover to the full consolidation of Belgacom International Carrier Services (BICS), including the contribution of MTN ICS. According to Belgacom consolidating BICS’ results had ‘offset the impact of regulation, such as reduced roaming rates and mobile termination rates, the charges for routing calls to its mobile network.’ Earnings before interest, tax, depreciation and amortisation (EBITDA), meanwhile, remained flat against the corresponding period a year earlier, at EUR1.489 billion in 9M10, compared to EUR1.488 billion in 9M09. Group net income including non-recurring items increased y-o-y from EUR617 million to EUR1.036 billion for the nine-month period, at end September 2010.

Belgacom also noted that it expects the impact of new regulatory measures and legal matters, including the Belgian Institute for Post and Telecommunications’ (BIPT’s) recent ruling reducing mobile termination rates, to total EUR115 million in terms of revenue, in addition to less than EUR30 million in EBITDA.

Belgium, Proximus