Solid revenue growth and strong EBITDAaL performance - EBITDAaL guidance improved
July 19 2024 - 1:00AM
UK Regulatory
Solid revenue growth and strong EBITDAaL performance - EBITDAaL
guidance improved
Embargo until 19 July 2024 at 7:00 am
Regulated information – Inside information
Financial information for the first semester 2024
Solid
revenue growth and strong EBITDAaL performance
EBITDAaL
guidance improved
- Mobile postpaid customer base +4.5 % yoy
- Cable customer base +4.5% yoy
- H1 Revenues +2.5%
comparable1 change
yoy
- H1 EBITDAaL +13.9%
comparable1 change
yoy
Operational Highlights |
- The company
delivers a solid commercial performance
- The market
experienced intensified competition in both mobile and
broadband
- Mobile
postpaid customer base increased by 74k, thanks to
competitive positioning of our brands portfolio, and progressive
activation of the Flemish Government service contract, bringing
total subscribers to 3.4m (+4.5% yoy)
- Cable
customer base increased by 18k, with an ending base
exceeding 1 million customers (+4.5% yoy)
|
Orange
Belgium: key operating figures |
reported |
comparable |
|
reported |
comparable |
|
H1 2023 |
H1 2023 |
H1 2024 |
change |
change |
Mobile postpaid customer base (in ‘000) |
2 850 |
3 249 |
3 393 |
19.1% |
4.5% |
Net adds (in
‘000) |
39 |
57 |
74 |
88.7% |
30.1% |
Cable customer
base (in ‘000) |
464 |
961 |
1 004 |
116.4% |
4.5% |
Net adds (in ‘000) |
21 |
25 |
18 |
-16.0% |
-29.8% |
Financial Highlights |
- Total
revenues reached €977.6m, increasing by +2.5% mainly
thanks to an increase in retail service revenues
- EBITDAaL
increased by +13.9% due to service revenue growth and a
strong contribution from synergies, notably the migration of VOO
mobile customers to the Orange network. Additionally, successful
litigations and some seasonal cost effects improved this
result
- eCapex grew
by +7.2% to €180.1m, mainly explained by
network deployment plans both in mobile and fixed
|
Orange
Belgium Group: key financial figures |
reported |
comparable |
|
reported |
comparable |
in €m |
H1 2023 |
H1 2023 |
H1 2024 |
change |
change |
Revenues |
740.5 |
953.6 |
977.6 |
32.0% |
2.5% |
Retail service
revenues |
532.1 |
766.7 |
794.2 |
49.2% |
3.6% |
|
|
|
|
|
|
EBITDAaL |
178.8 |
221.9 |
252.9 |
41.5% |
13.9% |
EBITDAal
margin as % of revenues |
24.1% |
23.3% |
25.9% |
173 bp |
261 bp |
eCapex2 |
-109.2 |
-168.0 |
-180.1 |
64.9% |
7.2% |
Adjusted Operating cash
flow3 |
69.6 |
53.9 |
72.8 |
4.7% |
35.2% |
Net
Cash provided by operating activities |
177.9 |
|
279.6 |
|
|
|
|
|
|
|
|
Net profit
(loss) for the period |
-15.4 |
|
-17.7 |
14.8% |
|
Net financial
debt |
2 115.5 |
|
1 907.0 |
|
|
Total
borrowings |
2 231.6 |
|
1 952.0 |
|
|
|
|
|
|
|
|
- Comparable base includes VOO Revenues, eCapex and EBITDAaL and
Adjusted Operating cash flow with interco elimination
- eCapex excluding licence fees
- Adjusted Operating cash flow defined as EBITDAaL – eCapex
excluding licence fees
Xavier Pichon, Chief Executive Officer,
commented:
We are thrilled with the good commercial
dynamics we are delivering across both fixed and mobile segments.
We even surpassed the milestone of 1 million broadband customers.
Thanks to the rapid and successful integration of VOO within Orange
Belgium, we have been able to deliver these positive results,
demonstrating the strength and synergy of our combined operations.
The teams’ excellent work made this outcome possible.
The market landscape is continually evolving,
and we stay agile and responsive to maintain our momentum. The new
portfolio that we launched in July is a strategic step forward,
designed to further foster commercial dynamism and drive
growth.
In our B2B activities, the gradual activation of
our customer Flemish Government has also played a pivotal role in
influencing these positive commercial results.
Overall, these developments position us well for
sustained success, and we remain committed to leveraging our
strengths to achieve our strategic goals.
Antoine Chouc, Chief Financial Officer,
stated:
We are very pleased with our good financial
performance this semester, which is largely driven by the
realisation of the synergies and most of all through the transfer
of the VOO customers to the Orange mobile network. The results were
also impacted positively thanks to the benefit from winning
litigations and seasonal effects. We have seen a positive impact
from the year-over-year changes in energy prices, which has further
bolstered our performance.
Additionally, we have taken this opportunity to
increase our investments in both fixed and mobile segments, laying
a solid foundation for future growth.
Our synergy initiatives are progressing well and
remain on track, reflecting our ongoing commitment to optimizing
operations and maximizing value creation. These efforts are
essential as we continue to navigate a dynamic market environment
and pursue our long-term objectives.
We are now confident that we will improve our
guidance for EBITDAaL and slightly exceed €535m for the year
(previously between €515m and €535m), while also adhering to our
capex targets (between €365m and €385m).
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