Mobistar’s 1H11 revenue flat, as smartphone sales offset impact of MTR reduction

26 Jul 2011

Belgian mobile network operator Mobistar has revealed that, on the back of increased demand for mobile data and higher sales of smartphones, consolidated turnover in the first half of 2011 remained almost unchanged against the same period a year earlier. In the six months ended 30 June 2011, Mobistar reported total revenues of EUR819.9 million (USD1.18 billion), up just 0.1% year-on-year, although service revenues for the six-month period fell by 1.7% against 1H10, with the operator attributing the decline primarily to enforced reductions in mobile termination rates (MTRs) and roaming charges. The cellco said that the negative impact of the termination rate regulation was EUR47.8 million, with a further EUR6.7 million credited to lower roaming rates. Declines in service revenue meanwhile were, it said, partly offset by the consolidation of Mobistar Enterprise Services (MES), as well as organic growth in the mobile data sector. Earnings before interest, tax, depreciation and amortisation (EBITDA) meanwhile stood at EUR270.6 million in the first half of 2011, down 3.0% year-on-year, while consolidated net profit for the period was EUR116.2 million, representing a 12.2% fall.

In operational terms, at the end of June 2011 Mobistar reported a total Belgian mobile subscriber base of 3.521 million, up 2.6% y-o-y against 3.433 million at end-June 2010. Further, it had 486,995 mobile virtual network operator (MVNO) customers at mid-2011, bringing its overall mobile voice customer base to just over four million. Mobile internet customers at 30 June 2011 totalled 122,019, up from 93,282 a year earlier, while Mobistar’s ADSL accesses stood at 68,886, an increase of 52.7% compared to the 45,113 it had a year earlier. Fixed line voice subscriptions meanwhile rose 25.5% y-o-y to reach 207,114 at the end of 1H11.

Belgium, Orange Belgium