Belgacom Group released its Q2-2013 financial results, on track to meet full-year guidance

• Belgacom on track to meet its full-year guidance
• Positive trend change in mobile confirmed with strong postpaid customer growth
• Convergence strategy clear differentiator in challenging market

06-8-2013 — /EuropaWire/ — Operational results: further growth of customer base for TV, Internet, mobile postpaid and Packs

Belgacom’s convergence strategy and quality network proved once again to be key assets in a very competitive and rapidly changing market.
Belgacom increased its commercial activities on mobile in the second quarter of 2013, building on the positive turnaround it already accomplished in the first quarter of 2013.  Through its simplified and attractive mobile pricing offer, backed by tactical handset subsidies and increased marketing campaigns, Belgacom solidly grew its mobile postpaid customer base.  The customer base for TV, Internet and Packs continued to grow as well.

• + 46,000 mobile cards (+128,000 postpaid, -82,000 prepaid); total of 5,410,000 mobile cards (including voice and data mobile cards sold through CBU, EBU, Tango, MVNO and SDE&W segments)
• + 16,000 Belgacom TV subscriptions, increasing the total TV customer base to 1,428,000
• + 5,000 Fixed Internet lines, with a total Internet customer base of 1,652,000
• + 19,000 multi-play Packs, with a total of 1,278,000 Packs
• -39,000 Fixed Voice lines, with a total Fixed Voice customer base of 3,002,000

Financial results on track to meet full-year guidance

The Belgacom Group reported second-quarter 2013 revenue of EUR 1,583 million, i.e. -1.7% year-over-year.  On comparable basis, i.e. the 2012 one-off accounting adjustment excluded, the Group revenue decreased by 2.5%.  Regulatory effects aside, the Group revenue was mainly impacted by Mobile re-pricing effects, partially compensated for by the solid revenue from Fixed products and a limited revenue growth from BICS.

Belgacom reported for the second quarter 2013 a Group EBITDA of EUR 430 million, or 1.9% lower than for the same period of 2012. On comparable basis, i.e. the 2012 one-off accounting adjustment excluded, the Group EBITDA was 9% lower.  In addition to regulatory impacts, Belgacom’s lower Group EBITDA reflects the pressure on Mobile Direct margin, and higher subscriber acquisition costs in the Consumer segment.

In the second quarter of 2013, Belgacom invested EUR 177 million, bringing year-to-date June 2013 capex to EUR 370 million, i.e. 11.7 % of Group revenue. Among other things, Belgacom invested in further raising the speeds and capacity of both its Mobile and its Fixed network, and in IT and network simplification projects.

In the second quarter of 2013, Belgacom generated EUR 47 million in Free Cash Flow, or EUR 63 million less versus the same period of 2012. This was driven by a timing difference in income tax payments and lower EBITDA, partially offset by lower cash needs for core working capital.

Didier Bellens, Belgacom’s CEO

“I’m happy to announce that Belgacom’s approach to dealing with the mobile market disruption since October 2012 has so far delivered successful results. Building on the stabilized churn levels from the first quarter, we focussed entirely on mobile customer acquisition in the second quarter. Supported by our new attractive and simplified mobile portfolio launched on 1 April 2013, increased marketing campaigns and tactical handset subsidies, we regained ground and turned our mobile net adds back to positive.  In meantime, our mobile revenue trends remained fairly in line with the first quarter.  Finally, considering the pressure on the mobile margins, we have well managed our cost base, which we will continue to do in the future.  In view of current operational and financial achievements we are confident in reiterating our outlook for the year 2013.”

The full report