Solid commercial momentum drives strong growth in retail service revenues

Press releaseEmbargo until April 24, 2019 at 7:00 amRegulated information

Financial information for the first quarter of 2019

Solid commercial momentum drives strong growth in retail service revenues

  • Mobile postpaid net-adds: + 21k / +53.6% yoy
  • Convergence net-adds: +20k / +5.8% yoy
  • Revenues: +3.8% yoy / Retail service revenues:+13.5% yoy
  • EBITDAaL -3.8% yoy (+14% excluding impact of MVNO revenues)

Q1’19 Belgium operating highlights

  • Commercial momentum in mobile postpaid remains solid. The mobile postpaid customer base grew by 21k (+6.9% yoy) to 2.5m subscribers. New customers are increasingly opting for higher tariff plans.
  • Convergence net-adds confirms attractiveness of offering. The Love offer remains the best value broadband and TV package in the market. Orange Belgium added 20k subscribers and reached a milestone of 200k Love customers (+64.4% yoy). The convergent mobile subscriber base represents 12.7% of mobile postpaid customers.
  • B2C convergent ARPO continued to grow strongly while mobile-only ARPO contracted slightly. B2C convergent ARPO increased 7.7% yoy to €77.4 thanks to the absence of price promotions, revenue from connection fees and the take-up of the fixed line option. Mobile-only postpaid ARPO was 1.1% lighter yoy as growing access revenues did not fully compensate decreasing out-of-bundle revenues.

Orange Belgium: key operating figures

  Q1 2018 Q1 2019 change
Mobile postpaid customer base (in ‘000) 2,329 2,490 6.9%
Net adds qoq (in ‘000) 14 21 53.6%
Mobile only postpaid ARPO (€ per month) 21.1 20.8 -1.1%
Convergent customer base (in ‘000) 122 200 64.4%
Net adds qoq (in ‘000) 19 20 5.8%
B2C convergent ARPO (€ per month) 71.8 77.4 7.7%
Convergent mobile customer as % mobile contract customer base 8.0% 12.7% 471 bp
       

Q1’19 consolidated financial highlights

  • Revenues increased 3.8% yoy to €318.2m. Retail service revenues continued its growth trajectory (+13.5% yoy). Convergence services (+83.4% yoy) and mobile only services (+3.0% yoy) were again the main growth drivers. The loss in MVNO revenues represents €12.1m. 
  • EBITDAaL was impacted by the loss of Telenet MVNO revenues. EBITDAaL decreased 3.8% yoy against Q1’18 to €58m. Excluding the MVNO impact, EBITDAaL would have increased 14% yoy due to higher revenues and control of direct costs. Once again, Orange Belgium narrowed the cable operations’ EBITDA loss to €1.1m this quarter against a €5.9m loss in Q1’18.
  • 2019 financial guidance confirmed. Orange Belgium expects slight revenue growth, EBITDAaL of €285m-€305m and stable eCapex.

Orange Belgium Group: key financial figures

           
  reported comparable   comparable reported
(in €m) Q1 2018 Q1 2018 Q1 2019 change change
Revenues 306.6   318.2   3.8%
Retail service revenues 181.3   205.7   13.5%
           
EBITDAaL N/A 60.3 58.0 -3.8%  
margin N/A 19.7% 18.2% -144 bp  
eCapex   -31.8 -36.9 16.1%  
Operating cash flow1   28.5 21.1 -25.9%  
           
Adjusted EBITDA 60.6        
margin 19.8%        
Capex -31.8        
Operating cash flow2 28.8        
           
Net financial debt 295.5   252.1    
           

1 Operating cash flow defined as EBITDAaL – eCapex

2 Operating cash flow defined as Adjusted EBITDA –Capex

Attachment

  • OBEL_ER_2019 Q1 ENG FINAL
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