In This Article:
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Domestic Revenue Growth: Increased by 1.2% year-over-year.
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Domestic EBITDA Growth: Increased by 1.5% year-over-year.
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Global EBITDA Growth: Increased by 15.3% year-over-year.
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Group EBITDA: EUR 481 million, an increase of 2.8% year-over-year.
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CapEx: EUR 270 million for the quarter.
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Free Cash Flow: EUR 81 million total; organic free cash flow was negative EUR 36 million, improving by EUR 76 million year-over-year.
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Residential Internet Subscriptions: Increased by 6,000.
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Residential Mobile Post-Paid Subscriptions: Increased by 7,000.
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Convergent Residential Customers: Increased by 10,000.
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Fiber Coverage: 43% of Belgian homes and businesses.
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5G Coverage: Above 75% in Belgium.
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Asset Disposal Proceeds: EUR 330 million confirmed, targeting over EUR 500 million by 2027.
Release Date: May 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Proximus SA (BGAOF) reported a strong financial quarter for the Domestic segment with both revenue and EBITDA growing year-over-year.
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5G coverage in Belgium has surpassed 75%, and fiber coverage has reached over 43% of Belgian homes and businesses.
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The Global segment achieved a strong EBITDA growth of 15.3% year-over-year, driven by a 4% increase in direct margin and lower operational expenses.
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Proximus SA (BGAOF) is on track with its asset disposal program, having confirmed EUR330 million in proceeds, aiming for over EUR500 million by 2027.
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The company has maintained a positive net addition in its Residential unit for both Internet and mobile post-paid, despite increased competition from new market entrants like DIGI.
Negative Points
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The competitive landscape has intensified with the entry of DIGI, impacting market dynamics and increasing pressure on pricing strategies.
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The Business unit experienced a net loss of 15,000 mobile post-paid customers, partly due to the loss of a large contract and aggressive competitive pricing.
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Organic free cash flow was negative EUR36 million, although it showed improvement from the previous year.
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There is ongoing uncertainty regarding macroeconomic developments and potential impacts on the Global segment's revenue and EBITDA growth.
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The fiber network rollout is progressing, but the company is still working towards its target of 50% home pass by the end of 2025, with collaboration discussions ongoing.
Q & A Highlights
Q: How did Proximus manage to achieve positive post-paid net adds in the Residential segment despite the competitive market and price increases? A: Jim Casteele, Consumer Market Lead: In Q1, we strategically phased our reactions across our three brands, with the Proximus brand making moves in April. This approach has shown positive impacts, and we are confident that mobile KPIs will improve in Q2. We also see positive trends in Internet services, indicating a strong performance moving forward.