Proximus Group financial results – Second quarter 2023

Proximus continues to deliver excellent domestic commercial results in the second quarter and with the acquisition of Route Mobile it secures a strategic transaction that accelerates its international growth

  • Proximus Group Q2 underlying revenue +4.0% YoY, underlying EBITDA -3.7% YoY.
  • Domestic revenue +4.2% to EUR 1,147 million in Q2, with Residential revenue up +4.2% and Business revenue +2.9%.
  • Fiber strategy further scaling: 25% population coverage and 322,000 activated Fiber lines end-June 2023.
  • Excellent commercial performances on all product lines: Mobile postpaid (+48,000), strong Internet (+13,000) and convergent customer growth (+16,000) driven by Fiber, net loss in TV customer base well contained (-3,000).
  • In line with expectations, inflationary cost increases impacted underlying Domestic EBITDA, -3.5% year-on-year.
  • International segments BICS and Telesign grew direct margin, at respectively 1.0% and 8.2% at constant currency.
  • H1'23 CapEx of EUR 612 million, on track for full-year expectation.
  • H1'23 Adjusted FCF of EUR -99 million, impacted by phasing of VAT and income tax payments. H2'23 will return to positive ground, supported by underlying business trends and the sale of the Proximus headquarter.
  • Reiterating guidance for full-year 2023. Domestic revenues expected to be at the upper end of the given range of +1% to +3%.

Highlights Q2 2023


Proximus has delivered an excellent Domestic commercial performance in second quarter, whilst having taken a major step in becoming one of the worldwide leaders in digital communications

The strong commercial momentum over the past 3 months demonstrated our ability to rapidly adapt to changes in our domestic market: our new mobile postpaid portfolio launched in May boosted our mobile customer growth to +48,000 in the second quarter 2023. In addition, our successful “You got the Fiber” advertising campaign and the launch in April of our unrivaled 10Gbps technology, nationwide as of July, have supported the success of our Fiber offers, adding 34,000 additional active Fiber customers during the second quarter. The continued commercial traction along with our pricing strategy translates in a sustained strong revenue growth, with Domestic revenue increasing year-on-year by 4.2%.

In parallel, the deployment of our Gigabit network in Belgium, is progressing well. End June, Proximus reached a national coverage rate of 25%, with nearly 1.5 million homes and businesses connected to the Fiber network. Proximus is several years ahead in the deployment of Multigig Fiber technology –setting itself apart from its competitors through delivering the fastest Internet connections. To ensure that Fiber is even more rapidly available to all, I’m calling for an effective and rational Fiber collaboration and co-investment framework in Belgium, for the benefit of the whole country.

Turning to our international segments, I am delighted to confirm a similarly solid commercial momentum with Telesign on the one hand, delivering robust sales bookings (+31% YoY) and continuing to post double digit revenue growth of 21.9% at constant currency from its Communication and Digital Identity services. Moreover, the value of its customer base continues to progress with a 117% Net Revenue Retention rate.

BICS, on the other hand, after an exceptional 2022 growth trend, which was boosted by the global post-Covid travel uptake, continued to perform well on its core Messaging and Mobility services, whereas legacy services evolution reflects the inherently declining Voice market.

On top of these commercial achievements, I’m really proud that we have announced a strategic transaction which will materially accelerate our international activities. The acquisition of a majority stake in Route Mobile, a global CPaaS player listed in India is transformational for the Proximus Group. Indeed, the transaction will make us one of the world’s leading companies in the fields of digital communications (CPaaS) and digital identity (DI). With Route Mobile and Telesign, the Group now holds two strong and highly complementary global assets, both from geographical and product expertise points of view. This strategic move will help to support our growth over the coming years with substantial effects on the Groups value creation, reflected in annual EBITDA synergies of at least €90 million, 3 years after the closing of the transaction.

To conclude, we continue to implement successfully our bold2025 strategy, with important milestones achieved both in our Domestic and international markets over the second quarter of 2023. For the second half of the year, besides closing the transaction with Route mobile, we will focus on maintaining a strong commercial momentum through leveraging our Gigabit networks and preparing for the new entrant.

Overall, I am very pleased with what has been achieved during the first half of the year, in an ever-challenging macroeconomic environment. We are therefore confident of reiterating our 2023 full year guidance on all metrics. Domestic revenues growth is even expected to be at the upper end of the given range of +1% to +3%, largely thanks to better-than-expected revenues from devices sales and IT hardware over the first six months of the year.

Key Figures


Operationals, in thousands

  Net adds in the quarter Park at end of quarter
    2022 2023 2022 2023 %
Fiber Homes Passed 122 110 1,031 1,483 43.8%
Activated retail lines 23 34 194 322 66.0%
Residential customers Convergent 11 16 1,022 1,078 5.4%
Group (subscriptions/SIM cards) Internet 8 13 2,202 2,240 1.7%
TV -1 -3 1,731 1,694 -2.1%
Fixed Voice -46 -32 1,905 1,727 -9.4%
Mobile Postpaid
(excl. M2M)
52 48 4,741 4,875 2.8%
M2M 154 112 3,701 4,180 13.0%
Prepaid -2 -23 662 583 -12.0%

Financials (EUR million)

  2nd Quarter Year-to-date
    2022 2023 % Change 2022 2023 % Change
Group 1,437 1,495 4.0% 2,841 2,982 4.9%
Domestic 1,101 1,147 4.2% 2,198 2,296 4.5%
BICS 270 267 -1.1% 515 529 2.8%
Telesign 107 128 18.9% 208 247 19.2%
Direct Margin
Group 931 951 2.1% 1,848 1,898 2.7%
Domestic 840 862 2.5% 1,677 1,718 2.5%
BICS 68 68 1.0% 127 135 6.5%
Telesign 27 28 3.4% 52 56 8.5%
Group -468 -505 7.8% -937 -1,019 8.8%
Domestic -409 -446 8.8% -826 -897 8.6%
BICS -35 -35 -0.7% -68 -71 4.9%
Telesign -28 -31 14.1% -50 -62 25.1%
Group 463 446 -3.7% 911 879 -3.6%
as % of revenue 32.2% 29.8% -2.4 p.p. 32.1% 29.5% -2.6 p.p.
Domestic 431 416 -3.5% 850 821 -3.5%
BICS 33 33 2.8% 59 64 8.3%
Telesign 0 -3 n.r. 2 -6 n.r.
Group Ebitda
  473 447 -5.5% 938 892 -5.0%
Net income   122 94 -23.4% 243 188 -22.5%
Accrued capex
(excl. spectrum
& football rights)
  287 300 4.4% 557 612 9.8%
Free Cash Flow
  -36 -20 45.4% -3 -99 >100%
Free Cash Flow
  -44 -24 44.4% -15 -124 >100%
Adjusted net fin position
(excl. lease liabilities)
  n.r. n.r.   -2,846 -3,121 -9.6%


  • Group revenue, Direct margin, Operating Expenses and EBITDA include intersegment eliminations
  • Adjusted FCF excludes M&A impacts, includes equity injections in Fiber JVs and includes assets sales

Reiterating 2023 full-year guidance

Based on the financial results over the first six months of 2023 and the company’s best estimate for the remainder of the year, the guidance for the full-year 2023 is reiterated. Based on higher-than-expected revenue from Terminals and IT hardware over the first half of 2023, the growth of Domestic revenue for the full-year 2023 is expected to land at the upper-end of the range of “+1% to +3%”.

With the anticipated significant headwind from inflation being confirmed, the underlying Domestic EBITDA outlook remains unchanged, with an expected full-year decline of around -3%. Proximus’ cost savings program, targeting a EUR 220 million cost reduction over the 3-year period 2023-2025 remains on track and successfully mitigates inflationary cost effects.

The International activities provide a unique growth pathway for Proximus, allowing it to take leadership positions in double-digit growth markets. Proximus expects its International segments BICS and Telesign to deliver combined a high single digit direct margin growth for 2023, excluding currency headwinds affecting the Telesign Direct margin.

In aggregate, Proximus reiterate its expectation to end the year 2023 with an inflation-driven decline in Group underlying EBITDA of around -3%.

Proximus expects its Group CapEx to reach its peak of around EUR 1.3 billion in 2023. In line with its investment plan, Fiber CapEx to pass customers is trending down year-on-year, while there is higher CapEx need to connect and activate Fiber customers. In addition, the CapEx reflects investments in Mobile with the mobile network consolidation and 5G roll-out ongoing. Inflation impacts on CapEx are being managed through CapEx optimization and efficiency programs.

The Net Debt/EBITDA ratio for 2023 is expected to be around 2.6X, allowing for sustained solid investment-grade credit ratings and near-term financing at low interest rates.

Guidance metric FY22 Actuals YTD23 Actuals FY23 Outlook
Underlying Domestic revenue € 4,478M +4.5% YoY Upper end of +1% to +3% YoY
Domestic underlying EBITDA € 1,665M -3.5% YoY Around -3% YoY
International Direct Margin € 377M +6.6% YoY (in
constant currency)
High single digit growth
Underlying Group EBITDA € 1,786M -3.6% YoY Around -3% YoY
CapEx (excluding Spectrum & football rights) € 1,3Bn € 612M Peak at around € 1.3Bn
Net debt / EBITDA 1.5x (Proximus)
2.3X (S&P)
NR Around 2.6X (S&P)


  • International Direct Margin: Telesign and BICS Direct Margin combined.  Company FY projections on DM exclude currency fluctuations on Telesign Direct Margin.

Shareholders return policy 2023-2025

In line with the bold2025 strategy and deriving shareholder return policy, Proximus intends to return over the result of 2023 a stable gross dividend of EUR 1.2 per share, provided a financial performance delivery in line with its strategic plan.

Over the result of 2024 and 2025, Proximus will rebase its dividend level to EUR 0.60 per share. The rebased sustainable dividend level incorporates all currently known macro and inflationary headwinds, as well as expected changes in market structure. The proposed dividend is reviewed and submitted to the Board of Directors on an annual basis, in order to keep strategic financial flexibility for future growth, organically or via selective M&A, with a clear focus on value creation. This also includes confirming appropriate levels of distributable reserves.

Quarterly report financial files


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