Mobistar Belgium reports declines in 3Q revenues

21 Oct 2014

Orange Group’s Belgian cellular operator Mobistar has reported total consolidated turnover of EUR304.4 million (USD388.5 million) for the three months to 30 September 2014, down from EUR347.5 million in the year-earlier period. Restated EBITDA dropped from EUR90.8 million to EUR77.3 million over the twelve months. The firm attributed the negative performance to a number of factors, including regulatory moves to reduce mobile termination rates and EU roaming charges, plus declines in handset sales and service revenues. Mobistar was forced to stop marketing its bundled offers of mobile, TV and broadband internet services last year, claiming that a lack of competition in the fixed sector made it impossible to make a profit on reselling fixed services. It is now expecting to return to the fixed market by the end of this year, however, having forged new converged resale agreements with cable network operators Telenet and Brutele-Tecteo.

Mobistar is the second largest of Belgium’s three mobile network operators; at the end of September the company claimed 5.44 million mobile subscribers in Belgium and another 99,500 in Luxembourg, representing an overall increase of 55,267 from the end-June total and a rise of 8.1% since the start of the year. Of its Belgian customer total, 1.55 million were via third-party mobile resellers.

Belgium, Orange Belgium