Strong commercial success validates Orange Belgium’s position as a Bold Challenger
24 Oktober 2018 - 7:00AM
Strong commercial success validates Orange Belgium’s position as a
Bold Challenger
Press releaseEmbargo until October 24, 2018 at
7:00 amRegulated information
Financial information for the third quarter and first nine
months of 2018
Q3 2018 retail services revenue grew
10.1% yoy and adjusted EBITDA 2.2%
Belgium operational highlights
- Strong performance of mobile operations.
During the first half of the year, Orange Belgium improved its
postpaid plans by introducing bold plans with unlimited voice and
data. This market positioning contributed to subscriber growth and
lower churn. Net additions accelerated to 53k during the quarter
compared to 26k in the second quarter of 2018. The contract
customer base increased by 5.3% yoy. The stability of contract
mobile-only ARPO is the result of attractive offers and improving
subscriber mix. As a result, the average data consumption per user
in September was 2.9 Gb (+73% yoy). Lastly, the prepaid subscriber
base was stable with net additions of 2k compared to the second
quarter of 2018.
- Orange Belgium delivers strong momentum in
convergence. The cable customer base increased by 89.4%
yoy to 155k, representing net additions of 19k subscribers during
the quarter. This solid performance was achieved without price
promotion. The B2C convergent ARPO grew sequentially by 4.1% to
€76.7. Cable mobile subscribers now represent 10% of the overall
mobile customers. Amidst a fast growing subscriber case, the
convergence operations’ EBITDA loss decreased from €5.2m in the
third quarter of 2017 to €4.3m this quarter. The improvement was
achieved through: operational efficiency, better churn management
and a reduced wholesale price (implemented on August 1).
Group financial highlights
- Revenues increased by 1.5% yoy to €318.0m driven by a
double-digit growth in retail services (+10.1% yoy), with a
doubling of convergent revenues (+112.3%) and mobile revenue growth
(+1.5%), offsetting lower equipment sales (-9.0%) and
declining MVNO revenues.
- Adjusted EBITDA resumed growth (+2.2% yoy) to €81.4m supported
by higher revenues as well as cost management
- Net debt amounted to €254.0m and gearing remains low (net debt
to EBITDA 0.9x)
- 2018 financial guidance maintained: slight revenue growth,
adjusted EBITDA between €275 and 295m and stable core capex
Orange
Belgium Group’s consolidated key figures |
9M 2018 |
9M 2017 |
Variation |
Q3 2018 |
Q3 2017 |
Variation |
Belgium operating KPI |
|
|
|
|
|
|
Mobile contract customer base excl. M2M (in ‘000) |
|
|
|
2,408 |
2,287 |
5.3% |
Net adds qoq (in ‘000) |
121 |
49 |
147.1% |
53 |
15 |
242.2% |
ARPO mobile only contract (€ per month) |
|
|
|
21.8 |
21.9 |
-0.6% |
Convergent customer base (in ‘000) |
|
|
|
155 |
82 |
89.4% |
Net adds qoq (in ‘000) |
73 |
64 |
14.2% |
19 |
18 |
10.3% |
B2C convergent ARPO (€ per month) |
|
|
|
76.7 |
72.8 |
5.5% |
convergent mobile
customer as % mobile contract customer base |
|
|
|
10.1% |
5.4% |
|
Group financials (€ m) |
|
|
|
|
|
|
Revenues |
937.6 |
920.9 |
1.8% |
318.0 |
313.5 |
1.5% |
Retail service revenues |
569.1 |
527.6 |
7.9% |
199.1 |
180.9 |
10.1% |
Adjusted EBITDA |
208.7 |
226.2 |
-7.7% |
81.4 |
79.7 |
2.2% |
% of Revenues |
22.3% |
24.6% |
|
25.6% |
25.4% |
|
Net profit |
24.3 |
40.9 |
-40.7% |
19.8 |
20.3 |
-2.3% |
Capex |
-110.4 |
-114.6 |
-3.7% |
-33.1 |
-37.4 |
-11.4% |
Organic cash flow |
94.7 |
81.8 |
15.8% |
51.9 |
42.8 |
21.3% |
Net debt |
|
|
|
254.0 |
288.3 |
-11.9% |
Michaël Trabbia, Orange Belgium’s Chief Executive Officer,
commented:
“We are very proud of our strong commercial
performance in mobile and convergence, which is the result of our
Bold Challenger positioning. We listened to the unmet expectations
of Belgian customers for simple and worry-free offers. In the first
half of 2018, we launched the first full unlimited mobile and
convergent offers in Belgium, and we gave access to unlimited voice
combined with a good data bundle to the vast majority of our
customers.
This strategy allowed us both to attract new
customers and to significantly improve their loyalty. Thanks to
these new offers, the mobile data consumption growth of our
customers accelerated since the beginning of the year, reaching 73%
yoy. With the continued success of our convergent offers, over 10%
of our mobile customers are now convergent.”
Arnaud Castille, Chief Financial Officer,
stated:
“Adjusted EBITDA resumed growth in a context of
strong commercial success. This was driven by increasing revenues
as well as cost management. EBITDA margin also improved as we
diligently pursue operational efficiencies. The convergence
operations’ EBITDA loss has decreased despite a fast
growing subscriber base. We have delivered compelling organic
cash-flow growth this quarter. Our balance sheet position remains
solid and this allows us to continue investing for our customers'
satisfaction.”
- ENG Orange Belgium - Financial results Q3 2018 FV
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