Belgian operator Proximus reported second-quarter revenues of EUR 1.417 billion, down 3.1 percent from a year ago as growth in TV and mobile was offset by a continued fall in fixed voice and at the international operation BICS. Total domestic revenues increased 0.3 percent to EUR 1.105 billion, in line with the company's forecast for stable revenue over the full year.
Underlying costs were down 2.6 percent from a year ago, in line with its plan to save EUR 150 million in the period 2015-19. As a result, underlying group EBITDA increased by 0.4 percent to EUR 464 million, and the margin rose to 32.8 percent from 31.7 a year ago.
Free cash flow reached EUR 212 million in the first half, down from EUR 255 million a year ago due mainly to higher tax payments..
In the first half of 2017, Proximus invested a total EUR 502 million, including EUR 281 million in Q2. The increase from a year earlier was due to the costs of acquiring rights to the Jupiler football league for the coming three seasons. Other investments went to its new fibre roll-out project, which has started in four cities, expanding its entertainment offering and simplification and transformation projects aimed at reducing costs.
Proximus confirmed its outlook for the full year for stable revenue from its domestic activities, after a 1.7 percent increase in H1. The company also expects a small increase in group EBITDA this year, after 3.8 percent growth in H1. Capex is expected to reach around EUR 1 billion in 2017, excluding the cost of the football rights.
The consumer division recorded quarterly sales up 1.7 percent to EUR 727 million. Fixed revenues were up 1.7 percent to EUR 387 million, led by 2.0 percent growth in data and internet services and an 8 percent rise in TV revenues. Mobile services revenue fell 1.6 percent to EUR 247 million, hurt by the roaming price cuts and prepaid losses, while mobile equipment sales jumped 37.5 percent to EUR 42 million.
Proximus said it saw good demand for its quad-play bundles, including at its low-cost Scarlet brand. The number of 4P customers rose by 22,000 in Q2 to 662,000, and these households generated ARPU of EUR 116.5 per month, up 1.6 percent from a year ago. This helped limit the loss in fixed voice lines to 2,000 in the quarter, while broadband customers rose by 15,000 and TV customers were up by 17,000.
The mobile postpaid base rose by 44,000 to 2.622 million, but ARPU was down by 2.8 percent year-on-year to EUR 28.0 as higher data uptake could not offset the roaming price cuts and lower voice usage. Smartphone penetration reached 70 percent, and average data usage was up 51 percent from a year ago to 1.192 GB per month per customer (1.404 GB for 4G customers).
The prepaid mobile base fell by 59,000 in the quarter, with the general market decline accelerated by mandatory prepaid registration from June. Proximus said it still had 93,000 prepaid Sims unregistered at the end of June, which will be deactivated in September if the customers don't register.
