Proximus revenues remain stable at EUR 1.44 bln in Q1

In the first quarter, Belgian operator Proximus said revenues remained stable at EUR 1.44 billion, compared to EUR 1.43 billion a year ago. On the home market, the company gained revenues of EUR 1.11 billion, up by 3.2 percent. Revenues at BICS (international carrier services) continued to decline to EUR 332 million, down from EUR 376 million (-6.6%). The direct costs increased by 2 percent, suppressing the gross margin to 62.8 percent. The total direct margin came to EUR 902 million in Q1 2016 and to EUR 898 million in Q1 2017. EBITDA grew by 7.5. percent to EUR 449 million, the EBITDA margin increased to 31.3 percent. Proximus invested EUR 212 million, a drop compared to the EUR 237 million a year ago. The next few quarters costs will increase due to the roll out of fibre across Belgian cities. The net profit grew to EUR 119 million. 

In Belgium, consumer revenues grew to EUR 720 million, but that is partially because a share of Tango's revenues are now counted in the Business segment. According to the adjusted figures, the revenues came to EUR 706 million a year ago. In Q1 the Business segment noted revenues of EUR 348 million while wholesale grew by EUR 4 million to EUR 52 million. 
Proximus confirms its expectations for 2017, despite the upcoming decline in roaming revenues.It expects more or less stable revenues for Belgium, with a slightly higher group EBITDA.

Capex will come to around EUR 1 billion, a result of increasing improvements in efficiency coupled with investments in FttX. The gross dividend will remain at EUR 1.50.

Of the EUR 720 million in Consumer revenues, the largest share came from Fixed at EUR 338 million, of which EUR 130 million from fixed telephony, EUR 153 million from broadband, EUR 95 million from TV and EUR 11 from Other (devices, software). The mobile revenues came to EUR 242 million, of which EUR 215 million from postpaid and EUR 27 million from prepaid. The blended ARPU declined from EUR 22.1 to EUR 22.0

The fixed services saw net additions of 35,000 connections, for a total of 3,872,000. Voice decreased by 30,000 connections, while broadband grew by 65,000 and TV increased by 76,000. Mobile connections dropped net by 71,000 to 3,646,000, showing a growth in postpaid customers but a drop of 211,000 prepaid customers. 

The company'ss quad play offering allows Proximus to serve on average 4.58 RGUs per household, with an average revenue of EUR 115 per month. 

The Enterprise division showed revenues of EUR 348 million (+4.7%) and a gross direct margin of EUR 238 million, with growth coming from ICT services. Mobile enterprise customers on the 4G network use on average 1127 MB per month, with Consumers using on average 1303 MB