Regained commercial momentum and efficient cost reduction boosting EBITDAaL
23 Ottobre 2020 - 7:00AM
Regained commercial momentum and efficient cost reduction boosting
EBITDAaL
Press releaseEmbargo until 23 October 2020
at 7:00 amRegulated information – Inside information
Financial information for the third quarter of 2020 and first
nine months of 2020
Regained commercial momentum and
efficient cost reduction boosting EBITDAaL
- Mobile postpaid customer base +2.6% yoy / Convergence
customer base +30.8% yoy
- Q3 Revenues1 -0.6%
yoy / Q3 Retail service revenues1
+2.6% yoy
- Q3 EBITDAaL1 +7.2%
yoy
- Guidance 2020 confirmed
|
Operational Highlights |
- As from the second half of the quarter, Orange Belgium
delivered upbeat commercial performance leading to
outstanding financial results in spite of continuing
COVID-19 measures, e.g. shops were allowed to
re-open but with limited capacity. As seen in Q2’20, COVID-19
measures continued to directly impact the wholesale revenues as SMS
traffic and roaming decreased.
- Orange Belgium continued to increase its mobile
customer base supported by the success of the multicard Go
portfolio, despite a highly competitive environment.
Mid-quarter, data increased on the Go Plus offer, creating new
commercial momentum. During the quarter, 21k new mobile
postpaid customers were added, reaching 2.6m subscribers
(+2.6% yoy).
- Convergence net adds returned to strong levels with
+17k new Love subscribers. The introduction of the Go Plus
discount in combination with the Love option, together with the
successful new Belgian football option created positive momentum
for convergent offers. Once again Love Duo proves its worth
attracting one third of the gross adds. Convergent mobile
subscribers now represent 19.1% of mobile postpaid customers, up
454 bp vs Q3’19.
- B2C convergent ARPO decreased by 3.0% yoy to
€75.4, explained by the growing Love Duo customer base
with a lower price point (18% of the total convergent customer
base) and the decrease in out-of-bundle revenues from roaming. This
is partly compensated by the increasing number of options (e.g.
Football option).
- Mobile only postpaid ARPO declined by 3.0% yoy to
€20.5, due to the decrease in out-of-bundle revenues from
roaming, partly offset by migrating customers to higher tariff
plans in the new Go portfolio.
|
| Orange
Belgium: key operating figures |
|
|
|
|
|
Q3 2019 |
Q3 2020 |
change |
| Mobile
postpaid customer base (in ‘000) |
2 548 |
2 615 |
2.6% |
| Net adds (in
‘000) |
32 |
21 |
-34.3% |
| Mobile only
postpaid ARPO (€ per month) |
21.2 |
20.5 |
-3.0% |
| Convergent
customer base (in ‘000) |
233 |
305 |
30.8% |
| Net adds (in
‘000) |
17 |
17 |
-3.7% |
| B2C convergent
ARPO (€ per month) |
77.7 |
75.4 |
-3.0% |
| Convergent
mobile customer as % mobile contract customer base |
14.6% |
19.1% |
454 bp |
|
|
|
|
|
|
Financial Highlights |
- Revenues reached €335.3m, a slight decrease of 0.6%
yoy1. Retail service
revenues continued their growth trajectory (+2.6% yoy1) mainly
supported by higher convergence services (+27.6% yoy). COVID-19
impacted the wholesale revenues (-12.7% yoy) due to lower incoming
SMS revenues (-€9.1m) and declining roaming (compensated by lower
roaming costs). The decrease of SMS revenues has no impact on
EBITDAaL.
- EBITDAaL grew by 7.2% yoy1
to €89.4m, driven by higher retail service
revenues, as well as lower costs (-3.1% yoy1 -
mainly SMS, roaming cost and labour). Orange Belgium continues with
the Bold Inside transformation plan resulting in structural
cost efficiencies. The cable EBITDAaL had a positive
result of €5.3m (+€3.1m yoy).
- eCapex increased by 6.8% yoy to €47.5m, partly
explained by the increased installation of cable customers in
comparison to last year.
|
Orange Belgium Group: key financial figures
| |
reported |
comparable1 |
|
comparable |
reported |
reported |
comparable |
|
comparable |
reported |
|
in €m |
Q3 2019 |
Q3 2019 |
Q3 2020 |
change |
change |
9M 2019 |
9M 2019 |
9M 2020 |
change |
change |
|
Revenues |
334.3 |
337.2 |
335.3 |
-0.6% |
0.3% |
971.4 |
993.6 |
971.9 |
-2.2% |
0.1% |
| Retail service
revenues |
221.8 |
224.7 |
230.6 |
2.6% |
4.0% |
634.5 |
656.0 |
676.4 |
3.1% |
6.6% |
| |
|
|
|
|
|
|
|
|
|
|
|
EBITDAaL |
83.6 |
83.4 |
89.4 |
7.2% |
6.9% |
220.5 |
219.6 |
237.6 |
8.2% |
7.7% |
| margin as % of
revenues |
25.0% |
24.7% |
26.7% |
193 bp |
165 bp |
22.7% |
22.1% |
24.4% |
235 bp |
174 bp |
| eCapex |
-39.3 |
-39.3 |
-41.9 |
6.8% |
6.8% |
-119.1 |
-119.1 |
-106.8 |
-10.3% |
-10.3% |
|
Operating cash flow2 |
44.3 |
44.1 |
47.5 |
7.5% |
7.0% |
101.4 |
100.4 |
130.7 |
30.1% |
28.9% |
| |
|
|
|
|
|
|
|
|
|
|
| Net financial
debt |
248.4 |
|
135.3 |
|
|
248.4 |
|
135.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Comparable base includes Upsize N.V. 2019 before
acquisition
- Operating cash flow defined as EBITDAaL – eCapex
Xavier Pichon, Chief Executive Officer,
commented: I am pleased to report a quarter of excellent commercial
and financial performance. Despite increased competition, we
regained commercial momentum and we were able to continue our
growth in mobile and convergence. Our bold positioning has enabled
us to reach the milestone of 300k customers only 4 years after the
introduction of the first cable customer.
The COVID-19 measures still partially impacted
our operations, limiting the full capacity of our shops and
salespeople. We continue to do our utmost to ensure the safety and
health of our customers, our team members and all our
stakeholders.
We also confirm our 2020 guidance for this year,
with slight decrease in revenues, EBITDAaL of €310m-€330m, and
slight decrease in eCapex.
Arnaud Castille, Chief Financial Officer,
stated: Once again, we have been able to provide strong financial
results over the last quarter. Our retail service revenues
increased despite the impact of the health crisis. As a result of
this growth in retail service revenues along with our Bold Inside
transformation program, we were able to achieve strong EBITDAaL in
the third quarter. This transformation program continues to deliver
a structural decrease in our costs.
We have recently announced our choice of a new
supplier of our mobile infrastructure. Not only will we be able to
build a top-quality network, but we will also achieve important
cost savings for building and maintaining this network in the
future. The estimated financials of the network sharing agreement
disclosed at the announcement remain valid: cash savings of €300m
over 10 years and initial set-up costs of €130m over the next 3
years.
Grafico Azioni Orange Belgium (EU:OBEL)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Orange Belgium (EU:OBEL)
Storico
Da Apr 2023 a Apr 2024
