Proximus Group financial results – Third quarter 2022

Proximus continues to post strong results in the third quarter, delivering growth at Domestic and International level

  • Proximus Group underlying revenue +7.8% YoY, underlying Group EBITDA +0.6% YoY.
  • Q3 delivered continued commercial traction.
  • Fiber strategy scaling: 19% population coverage and 220,000 activated Fiber lines end-Sept’22.
  • Domestic revenue +3.6%, underlying Domestic EBITDA +0.4%.
  • International activities BICS and Telesign both delivered double-digit growth in Q3, with BICS +16.4% revenue and +17.6% direct margin. For Telesign, this was respectively +44.0% and +40.1%.
  • Raising guidance for Domestic revenue excl. terminals to ‘around +2% YoY’; Group EBITDA to be at upper range of ‘growing up to 1%’.
  • Interim dividend of EUR 0.5 per share approved and payable on 9 December 2022.

Highlights Q3 2022

Supported by both the Domestic and International segments, Proximus Group delivered a strong +7.8% revenue growth. With inflationary cost increases mitigated and Domestic revenue as well as Group EBITDA outperforming, we positively revise our guidance for the year.

Geopolitical events related to the war in Ukraine are having profound impacts on the energy market, affecting all players in the economy, households and businesses alike. This new context raises challenges and calls for new responses. Today we are already among the European leaders in terms of energy savings. Nonetheless we are gradually implementing a set of measures, aiming to reduce our overall energy consumption for next winter season through the additional optimization of our buildings, data centers and infrastructure. In parallel we will launch a plan to expand our solar panel park in order to reduce our energy dependence.

The energy efficiency measures taken today will also be supportive for our longer term decarbonization ambitions. We want our initiatives to lead to concrete results and significantly lower our greenhouse gas emissions and becoming net-zero across our whole value chain by 2040. In that perspective, we can be proud Proximus is the first large Belgian company and 3rd telco worldwide to have SBTi -the Science Based Targets initiative- validated near-and long-term greenhouse gas (GHG) emission reduction targets.

The geopolitical and economic context continues to provide headwinds. Nonetheless, the Proximus Group delivered the strongest revenue performance since years, with an increase of 7.8% for the third quarter, which emphasises the resilience of our Domestic activities and our unique exposure to international markets. Furthermore, through focused cost control we delivered a +0.6% EBITDA growth for the Group, despite inflationary cost pressure.

In a next step to position Proximus as the clear leader in terms of customer internet propositions in Belgium, I'm really proud that we set again the pace by introducing 10 Gbps Fiber technology across 5 cities this week and nation-wide by summer 2023.

In the meantime, our Fiber footprint continues to grow at a strong pace, with end-September 1,124,000 homes and business passed with Fiber, of which 93,000 added over the past 3 months – a number that includes the typical slowdown during the summer holiday period. This brings us to a nation-wide coverage level of 19%, right on target to reach the 22% population coverage targeted by the end of this year. From a commercial perspective, +27,000 active Fiber lines were added over the third quarter, bringing the total 220,000.

Over the quarter, the commercial trajectory in our Domestic market continued to see positive momentum, supporting a sustained growing revenue, accelerating for the third quarter to +3.6% compared to last year. A key enabler supporting that growth was a strong evolution of our NPS across our 3 brands with Proximus, Scarlet and Mobile Vikings.

Our customer base continued its progress towards convergent offers, with residential customers combining Fixed and Mobile increasing by +12,000 over the past 3 months. This trend was supported by the new offers launched earlier this year. While retaining customers within the Proximus family, our Proximus Flex XS pack and the Mobile Vikings Internet offer are clearly addressing evolving needs of certain customer segments. Especially during the Back-to-School season we noted a lower take-up of TV subscriptions in the customer acquisition mix.

We also continue to see resilience in the Business unit, with revenue up 3.7%. Besides a catch-up in product revenue, we saw good performance in Fixed internet, Mobile and recurring IT services. We continue to innovate in the business unit and focus on bringing solutions to changing needs. This quarter, as one of the first operators worldwide, we successfully tested 5G network slicing, in cooperation with Ericsson. This achievement further paves the way for a dedicated handling of business-critical applications in an Enterprise environment.

Our international activities, BICS and Telesign, delivered a double-digit growth quarter. The combined revenue of the two companies, as well as their direct margin, each grew by 23.2% compared to the previous year. BICS continued its double-digit EBITDA increase, up by 23.8% for the third quarter, driven by direct margin growth in all its 3 services.

Our second international business, Telesign, pursued the strong commercial trajectory of the last quarters, posting revenue growth of 44.0%, thereby emphasizing the success of the strategic course it has taken to reinforce its position in the Digital Identity and Communication market. Telesign remains fully on track in its growth ambitions set for the year.

Overall, I'm very pleased with our trajectory over the first 9 months of the year. It is the result of our strong commercial performance, continuous focus on customer experience, successfully managed portfolio repricing and strong trajectory of our international activities. This, combined with our focus on strict cost management for our Domestic activities, leaves us in a good position to face the economical headwinds. We are therefore confident to end the year 2022 with Domestic revenue excluding terminals to grow around 2%; and our Group EBITDA to be at the upper range of growing 'up to 1%'.

As a last point, I'm pleased to announce to our shareholders the Board of Directors approved the interim dividend over the accounting year 2022, with the 0.5€ gross per share to be paid on 9 December 2022.

Key Figures

Operationals, in thousands

    Net adds in the quarter Park at end of quarter
    2021 2022 % 2021 2022 %
Fiber Home Passed 65 93   686 1,124 63.7%
Activated retail lines 15 27   126 220 75.3%
Residential customers Convergent 10 12   979 1,035 5.7%
Group (subscriptions/SIM cards) Internet 5 6   2,163 2,207 2.0%
TV 5 -13   1,707 1,708 0.6%
Fixed Voice -50 -42   2,049 1,863 -9.1%
Mobile Postpaid (excl. M2M) 58 33   4,598 4,775 3.8%
M2M 165 212   3,211 3,913 21.8%
Prepaid -20 -22   709 640 -9.7%

Financials (EUR million)

  3rd Quarter Year-to-date
    2021 2022 % Change 2021 2022 % Change
Group 1,400 1,510 7.8% 4,137 4,351 5.2%
Domestic 1,085 1,125 3.6% 3,250 3,322 2.2%
BICS 263 307 16.4% 740 821 10.9%
Telesign 87 127 44.0% 241 333 38.4%
Direct Margin
Group 895 939 4.9% 2,679 2,787 4.0%
Domestic 819 844 3.1% 2,463 2,521 2.3%
BICS 60 71 17.6% 169 198 17.1%
Telesign 20 28 40.1% 57 80 40.8%
Group -438 -479 9.4% -1,316 -1,416 7.6%
Domestic -395 -418 5.9% -1,191 -1,245 4.5%
BICS -32 -36 12.1% -92 -104 12.3%
Telesign -15 -29 92.4% -42 -79 86.2%
Group 457 460 0.6% 1,362 1,371 0.6%
as % of revenue 32.6 % 30.4 % -2.2 p.p. 32.9% 31.5% -1.4 p.p.
Domestic 424 426 0.4% 1,272 1,276 0.3 %
BICS 28 35 23.8% 76 94 22.9%
Telesign 5 -1 nr 14 1 -94.8%
Group Ebitda
  466 469 0.6% 1,403 1,407 -0.3%
Net income   116 126 8.1% 358 369 3.1%
Accrued capex
(excl. spectrum
& football rights)
  239 283 18.5% 736 841 14.2%
Free Cash Flow
  146 85 -42.2 % 408 82 -80.0%
Adjusted net fin. position
(excl. lease liabilities)
  nr nr   -2,526 -2,710 -7.2%


  • Group revenue, Direct margin, Operating Expenses and EBITDA include intersegment eliminations
  • Adjusted FCF excludes M&A impacts but includes Fiber equity injections.
  • Mobile Vikings has been included in the Proximus Group consolidated financial statements as a fully consolidated subsidiary since 1 June 2021. This transaction affects the comparability of the figures for the current period with the prior-year figures. Where relevant, the comments in the report refer to the organic variance.

Full-year 2022 guidance

Based on the strong results over the first nine months of 2022, Proximus sees its Domestic segment to end the year 2022 with revenue excluding Terminals to grow around 2% year-on-year. The positive development reflects the good commercial momentum, with price changes having landed well and IT hardware installations starting to catch-up.

The 2022 Domestic EBITDA outlook remains confirmed at the upper range of 'growing up to 1%' year-on-year. The domestic revenue growth runs ahead of EBITDA due to some inflationary cost increases, including automatic wage indexation effects.

In terms of the Proximus Group EBITDA, expectations have turned somewhat more positive, including a continued strong result of BICS. Therefore, Proximus is confident to end the year 2022 with its Group EBITDA at the upper range of 'growing up to 1%'.

With Proximus' Fiber deployment program well on track, the 2022 Group CAPEX expectations remain unchanged, i.e., to go up to close to EUR 1.3 Bn (excl. spectrum and football rights).

The expected net debt ratio for 2022 remains unchanged at around 1.6X underlying EBITDA.

Guidance metric FY21
Reviewed Guidance
29 July 2022
YTD Actuals
Reviewed Guidance
28 October 2022
Underlying Domestic revenue (excluding terminals)  € 4,075M Growing up to 1% YoY Growing by 1%-2% YoY +2.5% YoY Growing around 2% YoY
Domestic underlying EBITDA  € 1,654M Growing up to 1% YoY Upper range of 'Growing up to 1% YoY' +0.3% YoY Reiterating Upper range of 'Growing up to 1% YoY'
Underlying Group EBITDA € 1,772M Around -1% YoY Growing up to 1% YoY +0.6% YoY Upper range of 'Growing up to 1% YoY'
Capex (excluding Spectrum & football rights)  € 1,203M Close to € 1.3Bn Reiterating 'Close to € 1.3Bn' € 841M Reiterating 'Close to € 1.3Bn'
Net debt / EBITDA 1.55X Around 1.6X Reiterating 'Around 1.6X' nr Reiterating 'Around 1.6X'

Shareholder return

Proximus remains committed to an attractive remuneration for its shareholders and intends to return over the result of 2022 an annual gross dividend of EUR 1.2 per share, in line with Proximus' announced three-year dividend policy over the period 2020-2022.

The Proximus Board of Directors approved on 26 October 2022 to pay the interim dividend over the 2022 accounting year, EUR 0.50 gross per share, on 9 December 2022.
Net dividend (30% withholding tax assumed): EUR 0.35/share

Quarterly report financial files


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