Mobistar’s net profit slides on impact of regulation

23 Oct 2012

Belgian multi-service operator Mobistar has released its financial results for the nine months ended 30 September 2012, revealing a more than 18% year-on-year decline in consolidated net profit. For the nine months under review Mobistar posted net income of EUR137.6 million (USD172 million), down from EUR168.5 million in the same period a year earlier, with the company citing ‘the continued impact of the changes in useful life of investments related to the network swap started in 2011’ as one of the core reasons for the decline. Further, Mobistar highlighted lower EBITDA as also having impacted its bottom line, with the company recording a 7.9% drop in EBITDA in 9M 2012 to EUR369.4 million.

In terms of revenue, for the nine-month period Mobistar generated a consolidated turnover of EUR1.20 billion, down from EUR1.23 billion a year earlier, though it noted that without the impact of regulatory changes its total consolidated turnover would have amounted to EUR1.24 billion. Consolidated turnover, the operator said, had been positively influenced by handset sales, particularly smartphones. Service revenues meanwhile accounted for EUR1.08 billion of the total, down from EUR1.13 billion in 9M 2011, with Mobistar claiming that the 4.2% decline was ‘largely due to a negative impact of the regulation for EUR41.6 million’.

At the end of September 2012 Mobistar’s mobile subscriber base stood at 4.213 million, up from 4.052 million a year earlier, although excluding customers signed up to mobile virtual network operators (MVNOs) using its network the total was 3.512 million, down from 3.524 million. The operator noted that of those customers it had signed up directly, post-paid customers now accounted for 67.4% of the total, up from 65% a year earlier, linking this increase to the success of new mobile tariffs. Fixed line broadband accesses stood at 75,830 at end-September 2012, up 6.2% y-o-y, while active fixed voice lines numbered 236,068, up from 212,675.

Belgium, Orange Belgium