Proximus sees 3Q revenue growth, but net income hit by settlement payout

2 Nov 2015

Belgian full-service telco Proximus (formerly Belgacom) has reported underlying revenue of EUR1.51 billion (USD1.71 billion) for the three months to 30 September 2015, an increase of 2.5% compared to the third quarter of 2014. The firm attributed the growth to a rise in core turnover, which was up 2.4% year-on-year to EUR1.09 billion, fuelled by solid performances at its fixed internet, TV, ICT and mobile operations, plus a 2.5% revenue growth at its international carrier subsidiary BICS to EUR420 million, driven by continued solid growth in non-voice services. Underlying group EBITDA was up 3.3% y-o-y to EUR447 million, though net income dropped from EUR157 million in 3Q14 to EUR69 million a year later due to one-off ‘incidentals’. These include a EUR120 million settlement which Proximus has recently agreed with domestic mobile market rivals Mobistar and BASE relating to a historic differentiation between on-net and off-net voice calls.

In operational terms, Proximus said it added 146,000 net new mobile users in the third quarter to take its total customer base to 5.88 million. This included 41,000 net new post-paid users and 141,000 machine-to-machine (M2M) and Internet Everywhere connections, offset by the loss of 36,000 pre-paid customers. It also added 15,000 net new fixed internet subscribers for a total of 1.83 million, though fixed voice lines fell by 22,000 to 2.80 million.

Dominique Leroy, CEO of Proximus, commented: ‘Over the last year we have taken many initiatives for the benefit of our residential and enterprise customers, and our strong focus to continuously improve the customer experience resulted in a sustained growth of our customer base for fixed internet, TV and especially mobile.’

Belgium, Proximus