Positive results despite impact of Covid-19 and strained competitive environment

  • Mobile postpaid customer base +3.0% yoy / Cable customer base +24.8% yoy
  • Q1 Revenues -1.0% yoy / Q1 Retail service revenues +1.9% yoy
  • Q1 EBITDAaL+12.8% yoy, +4.6% yoy excluding seasonality effect
  • 2021 guidance confirmed

 

Q1 Operational Highlights

  • Commercial performance remained solid amid a tougher competitive environment and on-going Covid-19 measures that limited the shops’ full capacity.
  • Go portfolio remains a success, with Go Unlimited special edition gaining traction. During the quarter, 23k new mobile postpaid customers were added, reaching 2.7m subscribers (+3.0% yoy).
  • Cable net adds continued to be strong with 23k new customers. One third of the gross adds are Love Duo customers, confirming the commercial trend of former quarters. Convergent mobile subscribers continued to grow and now represent 21.3% of mobile postpaid customers vs 17.4% achieved in Q1’20.
  • Mobile only postpaid ARPO declined by 3.4% yoy to €19.6, due to the decrease in out-of-bundle revenues. B2C convergent ARPO decreased by 2.8% yoy to €73.8, mainly explained by the discounts provided on mobile tariff plans in convergence, as well as the continuous growth of Love Duo in the customer base, decreasing the overall ARPO.

 

Q1 Financial Highlights

  • Revenues reached €330.4m, down 1.0% yoy. Retail service revenues continued to grow by 1.9%, mainly thanks to higher convergent service revenues (+16.9% yoy). As in past quarters, Covid-19 impacted wholesale revenues ​ (-16.0% yoy), mainly due to lower incoming SMS revenues (-€12.3m, offset by lower SMS costs).
  • EBITDAaL grew 12.8% yoy to €70.1m, driven by higher retail service revenues, supported by lower costs (-4.2% yoy). There was a €3.6m tailwind from seasonality in advertising and promotional spend linked to the launch of Go offers in Q1’20 and €1.5m one-off related to roaming. Excluding those effects the EBITDAaL had grown +4.6% yoy to €65.0m.
  • eCapex (excluding spectrum licence fees) increased slightly by 2.6% yoy to €36.1m. 2021 financial guidance confirmed: Orange Belgium expects low single-digit revenue growth, EBITDAaL of between €320m and €340m and eCapex between €200m and €220m.

 

Xavier Pichon, Chief Executive Officer, commented:

The first quarter of the year was characterised by both an ever-straining competitive environment together with the extension of the Covid-19 policies. Our shops remained open but with limited capacity in accordance with the recommendations of the competent authorities.

Thanks to our Team members’ commitment, we were even able to offer an improved customer experience and to attract new customers with numbers comparable to pre-pandemic levels.

Despite the challenges we are facing, Orange Belgium has shown strong resilience and delivered solid commercial and financial results for this quarter.

 

Antoine Chouc, Chief Financial Officer, stated:

The positive commercial performance also resulted in good financial results. Despite the sanitary crisis, we were once again able to grow in terms of retail service revenues, confirming the resilience of our activity. Thanks to our transformation programme, seasonality effect in our indirect costs as well as the one-off in roaming, we managed to improve the EBITDAaL in comparison to the first quarter of 2020.

The first quarter gives us the necessary assurance that we will achieve our guidance announced last quarter.

 

ENG Q1 2021 - FV.pdf 1 MB
Koen Van Mol Investor Relations

 

 

About Orange

About Orange Belgium

Orange Belgium is one of the major telecommunication operators on the Belgian market, with revenues of 1,749 million euros in 2023 and over 3 million customers on 31 December 2023, and in Luxembourg, via its subsidiary Orange Communications Luxembourg. Thanks to its own fixed and mobile networks, Orange Belgium offers both residential and business customers fixed and mobile connectivity services and convergent offerings (internet, telephony, television, including original TV content: Be tv, VOOsport, etc.). As a responsible operator, Orange Belgium invests to reduce its ecological footprint and promote sustainable and inclusive digital practices. Orange Belgium is also a wholesale operator, offering its partners access to its infrastructure as well as a broad portfolio of connectivity and mobility services, including offerings based on Big Data and the Internet of Things (IoT).

Orange Belgium is a subsidiary of the Orange Group, present in 26 countries with a total customer base of 298 million customers worldwide on 31 December 2023. The Group is also a leading provider of global IT and telecommunication services to multinational companies under the brand Orange Business.

Orange Belgium is listed on the Brussels Stock Exchange (OBEL).

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