Orange Belgium: Financial information for the third quarter and first nine months of 2017
October 23 2017 - 01:00AM
Solid commercial
performance
confirms the relevance of Orange Belgium's
convergent and mobile data strategy
9M 2017:
Total service revenues + 2.4 % yoy, adjusted
EBITDA +1.3 % yoy at group level,
Q3 2017: + 15k postpaid net adds, +2.7 % yoy
postpaid ARPU growth, +18k convergent Orange LOVE net adds in
Belgium
Brussels, 23 October 2017 - Today,
the Orange Belgium Group (Euronext Brussels: OBEL) publishes its
results for the third quarter and first nine months of 2017. The
third quarter of 2017 was marked by a strong commercial dynamism
and a good performance of Orange Belgium's growth drivers:
convergence, mobile data monetization and customer experience. The
development of its convergent customer base progressed well,
reaching 82 thousand convergent LOVE customers in Belgium with 129
thousand attached SIM cards. The mobile performance in Belgium was
good in the third quarter of 2017 with +15 thousand postpaid net
subscribers' additions in combination with a postpaid ARPU growth
of +2.7 % yoy. This demonstrates the success of the company's value
strategy in accelerating the market shift to higher data usage.
-
Orange Belgium's data
monetization strategy leverages the shift to higher data usage.
Orange Belgium's postpaid net additions amounted to 15 thousand in
the third quarter of 2017, reaching a total of 2.29 million
postpaid customers. As a result of increased 4G smartphone
penetration - up from 44 % a year ago to 56 % at the end of the
third quarter of 2017 - and growing demand for music and video
streaming - lifting average smartphone usage to 1.7 GB from 1.2 GB
a year ago - Orange Belgium's postpaid ARPU increased to 30.0
euros, a year-on-year growth of 2.7 %. This increase is
achieved thanks to a higher data usage.
-
Orange Belgium starts a new
phase as a convergent operator. The convergent LOVE customer
base increased by 18 thousand in the third quarter of 2017 to 82
thousand, while the company's mobile LOVE customer base increased
by 23 thousand to 129 thousand, representing almost 6 % of the
total postpaid customer base.Since the launch of its convergent
offer, Orange Belgium introduced new TV channels, the Orange TV app
and a new double data offer for its LOVE customers. With the
milestone of 100 thousand convergent LOVE customers in sight by the
end of the year, Orange Belgium is entering a new phase as a
convergent operator, aiming at deploying always more efficient and
customer oriented marketing, sales, provisioning, installation and
loyalty programs. This is taking place in parallel with the
proliferation of Easy Switch and ahead of the expected
implementation of a fairer and cost-oriented wholesale model with
more detailed service level agreements for the cable
operators.
-
Orange Belgium invites
regulators to rule in favor of competition in the fixed market.
The Belgian regulators' consultation on the draft market analysis
of the TV and broadband market ran until the end of September 2017.
The Belgian Competition Authority and the European Commission
should be notified in the fourth quarter of 2017 once observations
have been reviewed. A final decision is expected in the first half
of 2018. Orange Belgium has called on the regulators to rapidly
come to a final proposition and to improve substantially the
financial conditions for cable wholesale access, in order to obtain
a sustainable margin of the standalone cable business.
-
Orange Belgium delivered a good financial
performance in the first nine months of 2017, against a roaming
headwind. The group achieved
a total turnover of 933.7 million euros in the first nine months of
2017, an increase of 1.5 % year-on-year (+4.7 %
underlying growth after adjustment for the 28.0 million euros
related to EU roaming). Despite the decrease of the adjusted EBITDA
in the third quarter of 2017 mainly due to lower MVNO revenues,
Orange Belgium Group's adjusted EBITDA increased
1.3 % in the first nine months of 2017 to 240.3 million
euros, compared to 237.1 million euros a year ago. This result was
achieved despite the negative EBITDA contribution of the standalone
cable business of 14.9 million euros in the first nine months of
2017. Orange Belgium Group invested 114.6 million
euros in the first nine months of 2017, of which 35.5 million
euros was related to cable activities. Despite these growth related
investments, an operational cash flow of 137.4 million euros was
generated in the first nine months of 2017. At the end of September
2017, the net financial debt stood at 288.3
million euros. As a result, the net financial debt/reported
EBITDA ratio stood at 0.9x.
Q3 2017 results - UK
Q3 2017 results - NL
Q3 2017 results - FR
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Orange Belgium via Globenewswire
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