Press release
Embargo until April 24, 2019 at 7:00 am
Regulated 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