Belgacom reported sales for the first nine months of the year up 10.6 percent to EUR 4.945 billion, excluding non-recurring items, from 4.472 billion the year before. Revenue was driven by the full consolidation of BICS, including MTN ICS, and a solid underlying business trend. For the third quarter, revenue advanced 11.1 percent. When normalising for the impact of the full consolidation of BICS, including the contribution of MTN ICS, group revenue for the first nine months declined by 0.3 percent. Belgacom said that the negative impact of regulatory measures at EUR 75 million was largely offset by the underlying business growth from organic revenue growth at BICS, Belgacom TV, Fixed and Mobile Internet, and the turnaround in ICT revenue. Adjusted EBITDA for the year-to-date rose to EUR 1.925 billion from 1.426 billion the year earlier, and the margin went to 30.1 percent. Net profit increased to EUR 1.036 billion from 617 million, and diluted EPS jumped to EUR 3.22 from 1.93. Free cash flow rose to EUR 849 million from 681 million the year earlier, and capex was increased to EUR 515 million from 405 million a year earlier.
At the end of Q3, Belgacom had 920,000 Belgacom TV customers, an year-on-year increase of 39 percent, and 1,552,000 internet customers, up by 3.6 percent. The number of multi-play Packs advanced by almost 78 percent to 807,000 while the number of Mobile Internet customers rose 58 percent to 158,000. Belgacom said that the total number of Mobile customers rose slightly from the year before to 5,318,000.
CEO Didier Bellens said the group is forecasting full year revenue in the upper-end of its revenue guidance of 9-10 perent growth from last year. For the EBITDA margin, the operator’s target is still 30 percent as the company continues to focus on cost control by implementing overall cost efficiencies and concentrating on direct margin improvements. Belgacom has approved an interim dividend of EUR 0.50 gross per share.
In the first nine months, the consumer business unit recorded sales down 1.6 percent to EUR 1.768 billion, affected by the loss of intercompany revenues, which are no longer included in this segment. Including these eliminated intercompany flows, revenues were up 0.4 percent year-on-year despite regulatory pressure. The first cut of the new glide path for Mobile Termination Rates was implemented in August, and resulted in lowered fixed-to-mobile rates. Roaming rates further decreased from July and the collecting financial model for Premium Rate Services, applicable from 1 April, continued to pressure revenues as well. Year-to-date, regulation had a EUR 37 million negative impact on CBU revenues. Fixed voice sales fell 1.6 percent to EUR 852 million, due to the continued loss of lines, which were down by 30,000 in Q3. At the end of September, the consumer unit had 1,970,000 million fixed lines, including the VoIP customers at Scarlet. Year-to-date ARPU fell 4.6 percent to 20.6 percent.
Internet revenues grew 6.1 percent to EUR 254 million, supported by an increased customers base (+50,000 year-on-year).
The enterprise unit posted sales down 2.8 percent to EUR 1.816 billion, also affected by the elimination of intercompany revenue. Regulatory effects reduced revenue at the unit by EUR 24 million. The number of fixed lines down was stable, as were the number of broadband users at 446,000.