Mobistar expects regulatory pressure to dent 2011 results

10 Feb 2011

Belgium’s third-placed mobile network operator Mobistar has released its financial results for the three-month and twelve-month periods ended 31 December 2010, warning that in 2011 it is likely to see decline in both earnings before interest, tax, depreciation and amortisation (EBITDA) and net profit.

In 4Q 2010 Mobistar posted net profits of EUR68.5 million (USD93.5 million), up from EUR60.1 million in the same period a year earlier, while full year net income in 2010 was EUR263.6 million, up 1.2% year-on-year. With EBITDA in FY2010 up from EUR548.7 million to EUR567 million, the operator has however forecast that this will fall to between EUR505 million and EUR535 million in the forthcoming financial year, while net profit in 2011 is expected to be between EUR210 million and EUR240 million. The lowered expectations come on the back of regulatory pricing pressure, with Mobistar noting that its guidance for 2011 ‘takes account of the negative impact of regulatory measures for an amount of more than EUR74 million on the turnover for the full financial year 2011.’ Fourth-quarter revenues in 2010 meanwhile stood at EUR393.9 million, up from EUR371.2 million a year earlier, while in the twelve-month period Mobistar generated turnover of EUR1.66 billion, representing a 6% y-o-y increase.

Belgium, Orange Belgium