BGAOY Proximus Group (PK)

By Natalia Drozdiak

BRUSSELS--Belgium's Proximus said it expected to offer a dividend of 1.50 euros a share from 2017 until 2019, despite financial pressure from regulatory developments.

The telecommunications company has proposed to offer the same dividend per share for 2016, with EUR0.50 paid in December and the remainder to be paid in April.

The commitment came despite efforts by the European Union to eliminate cellphone roaming fees, which is one of the main regulatory developments expected to negatively impact Proximus' growth in 2017 by EUR81 million in revenue and EUR69 million in earnings before interest, tax, debt and amortization.

The EU has steadily decreased the roaming rates over the years and plans to effectively scrap them entirely by June, with the exception of cases where users roam extensively.

Proximus said it expected domestic revenue in 2017 to remain stable, while the company's Ebitda will likely grow slightly compared to 2016, in part due to its cost-cutting plan.

Proximus reported revenues of EUR5.9 billion for 2016 down from EUR6 billion in 2015 and Ebitda of EUR1.7 billion, up from EUR1.65 billion the previous year.

Write to Natalia Drozdiak at natalia.drozdiak@wsj.com

(END) Dow Jones Newswires

February 24, 2017 02:39 ET (07:39 GMT)

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