Regained commercial momentum and efficient cost reduction boosting EBITDAaL

Orange Belgium
·5-min read

Press release
Embargo until 23 October 2020 at 7:00 am
Regulated 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


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

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

  1. Comparable base includes Upsize N.V. 2019 before acquisition

  2. 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.


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