Proximus SA

Latest Results (14.08.2024):

Q2 2024 Highlights

Proximus SA’s Domestic segment closed the second quarter of 2024 with continued strong growth in Mobile Postpaid, adding 24,000 net new customers, including 46,000 in the Residential unit. The company's Fiber footprint reached significant coverage levels, passing 1,983,000 homes and businesses by the end of June 2024, which supported a strong growth in its Internet base with 11,000 new customers. Residential convergent offers grew by 15,000 customers, marking a 6.2% year-on-year increase. The number of active Residential and Business Fiber lines totaled 481,000, with 40,000 added during the quarter. However, the customer base for TV and Fixed Voice continued to decline, with reductions of 9,000 and 34,000 subscriptions, respectively.

Domestic Revenue

Proximus SA’s second quarter 2024 Domestic underlying revenue increased by 4.6% to EUR 1,200 million. The Residential unit posted a 5.3% revenue increase, including a strong 6.3% growth in Customer Services revenue, and a year-on-year increase of EUR 7 million in revenue from Terminals. Convergent revenue rose by 10.7%, driven by customer growth and inflation-based price adjustments. The Business unit's revenue grew by 4.8% year-on-year, supported by a solid growth trend in Business Services, which increased by 2.2% year-on-year, driven by IT Services (up 5.3%) and Fixed Data (up 5.8%), despite ongoing Fixed Voice erosion (down 4.3%). Revenue from Products increased by EUR 14 million compared to the same period last year. The Wholesale unit posted an overall 4.9% revenue decrease due to the loss of low-margin interconnect revenue (EUR 7 million), while Wholesale Services revenue increased by 9.1% driven by higher volumes in Instant Roaming.

Domestic EBITDA

The second-quarter 2024 Domestic EBITDA for Proximus SA totaled EUR 437 million, marking a 5.1% increase from the same period in 2023. This improvement reflects a higher direct margin, which increased by 4.5%, ongoing company-wide cost efficiencies, and a further moderation of cost inflation.

International Segment

On a pro-forma basis, Proximus SA’s International segment posted a 6.5% increase in EBITDA, driven by a 9.5% growth in the Communication & Data Direct margin. This segment's performance highlights the company's successful international strategy and its ability to leverage growth opportunities outside its domestic market.

Outlook and Guidance

Proximus SA has raised its revenue and EBITDA guidance for the full year 2024. The Group's CapEx is expected to be around EUR 1.36 billion following the consolidation of Fiberklaar. Additionally, the company's Net Debt to EBITDA ratio is anticipated to be approximately 3.1x, including the impact of the Fiberklaar consolidation and support from its divestment program.