Proximus raises FY guidance after strong Q2

29 Jul 2022

Belgian full-service telecoms operator Proximus has increased its guidance for the full year following continued growth and ‘strong commercial traction’ in Q2 2022. Group underlying revenues rose 4.9% year-on-year to EUR1.437 billion (USD1.463 billion) in the three months ended 30 June, with Domestic underlying revenue up 1.9% to EUR1.101 billion on the back of a 4.3% gain for the Residential unit, which posted strong growth in convergent (7.2%) and mobile-only (10.8%) revenues. Group underlying EBITDA totalled EUR463 million in the period, up 0.9% from EUR459 million in 2Q21, while underlying group expenses were 8.7% higher at EUR468 million, driven by the impact of inflationary cost increases. Excluding spectrum and football broadcasting rights, Proximus’ accrued group CAPEX over the first six months was EUR557 million (up 12.1% y-o-y), driven in large part by its ongoing fibre deployment. Over the second quarter, Proximus’s fibre network passed an additional 122,000 homes and businesses to increase its footprint to a total of 1.031 million premises at end-June, representing population coverage of over 17%.

Across the group as a whole, Proximus ended the reporting period with 2.202 million fixed broadband subscriptions (a 2.0% rise from 2.158 million in 2Q21), 1.731 million TV subscriptions (up 1.7% y-o-y) and 1.905 million fixed voice subscriptions (down 9.3%). The company reported a mobile subscription base (excluding M2M) of 5.403 million, compared with 5.268 million twelve months earlier.

The Belgian operator now expects underlying domestic revenues (excluding terminals) to grow by between 1% and 2% in 2022 and underlying EBITDA to land at the upper range of its earlier forecast for growth ‘up to 1%’. Including international operations, underlying group EBITDA should also increase by up to 1%, while the group’s CAPEX (excluding football and spectrum rights) is still forecast to rise to close to EUR1.3 billion.

Belgium, Proximus