Proximus Group financial results – Second quarter 2025
On continued strong commercial results, Proximus Group raises Domestic EBITDA outlook while outlook for Global is revised downward. Overall Group EBITDA guidance adjusted to "up to 1% growth"
- Robust operational quarter in highly competitive market, adding +36,000 Residential Mobile Postpaid cards.
- End-June'25 Fiber footprint scaled to over 2.4 million fiber homes passed, more than 45% Coverage in the Street.
- Q2'25 Domestic Services revenue +1.1%, Residential up +2.5% and Business -1.1%. Total Domestic revenue 0.7% YoY due to lower terminal and IT hardware revenue.
- Q2'25 Domestic EBITDA increased by +1.9% year-on-year.
- Proximus Global EBITDA -5.4% pro-forma (-3.2% at cc), facing increased headwinds in CPaaS SMS market.
- Proximus Group Q2'25 underlying revenue -5.6% YoY and Group EBITDA +1.2%, on a pro forma basis.
- H1'25 CapEx at EUR 542 million, H1 reported FCF of EUR 266 million, including an Organic FCF of EUR -5 million.
- FY '25 Group EBITDA guidance revised to "up to +1%", Domestic EBITDA to grow up to 2%, Global EBITDA expected to decline.
Highlights Q2 2025
- Proximus' Domestic segment ended the second quarter of 2025 with a robust net gain of +36,000 Mobile Postpaid cards for its Residential unit and a stable evolution of Mobile Postpaid cards in its Business unit, despite intense competition. Proximus' Fiber footprint reached 2,416,000 homes and businesses passed end-June 2025, fostering a continued growth for its Domestic Internet base with +4,000 in total. Residential convergent offers grew by +11,000 customers to a total of 1,194,000, a +4.2% year-on-year increase. End-June 2025, the number of active Residential and Business Fiber lines totaled 646,000, with +38,000 added during this past quarter. The customer base for TV and Fixed Voice sees continued erosion, down respectively by 13,000, and 39,000 subscriptions.
- Domestic's second quarter 2025 underlying Services revenue was up by 1.1%, total revenue decreased 0.7% to EUR 1,192 million. The Residential unit posted a +1.2% revenue increase, including a +2.5% growth in Customer Services revenue fueled by the continued strong commercial performance and the January 2025 inflation-based price adjustment. Convergent revenue grew by +5.4%. The second quarter 2025 revenue of the Business unit was 4.4% or EUR 23 million lower year-on-year, including a significant decline in low-margin Product revenue post a very strong first quarter. Business Services revenue ended 1.1% lower, including continued Fixed Voice headwinds and a moderating decline in Mobile services, partly compensated by growing IT services revenue.
- Proximus Wholesale unit posted a revenue decline of 3.9%, with the increase in Wholesale Services by +6.0%, not fully offsetting the EUR 5 million reduction in Interconnect revenue (no margin impact).
- The second quarter 2025 Domestic EBITDA totaled EUR 446 million, up +1.9% from the same period in 2024, driven by a +1.6% growth in Direct margin, while the year-on-year OpEx increase moderated to +1.3%. The higher costs reflect the impact of wage indexations, higher customer related OpEx and strategic transformation initiatives, partially offset by ongoing cost efficiencies and a one-off real estate tax reversal after the sale of the Brussels headquarter building.
- On pro-forma basis, Proximus Global revenue declines for the second quarter of 2025 by 18.8% to EUR 367 million ( 15.6% at constant currency) and Direct margin by 10.8% to a total of EUR 113 million ( 8.0% constant currency). This was due to increasing headwinds in the CPaaS SMS market, facing significant volume erosion and price competition, and was not compensated by the growth from other Omnichannel solutions. The pressure on direct margin was only partly offset by the successful realization of OpEx synergies. Proximus Global posted a -5.4% year-on-year EBITDA decline to EUR 45 million.
- In aggregate, the Proximus Group underlying revenue totaled EUR 1,544 million for the second quarter of 2025, down 5.6% on a pro-forma basis (-3.4% reported), mainly driven by the decrease in Proximus Global revenue, and non-Services revenue in Domestic. The Underlying Group EBITDA totaled EUR 491 million, a year-on-year increase of +1.2% on a pro-forma basis (+2.3% reported).
- The Proximus Group booked CapEx for the second quarter 2025 totaled EUR 272 million, bringing the total year-to-date June 2025 Capex to EUR 542 million, year-on-year lower by EUR 43 million mainly due to the cyclicity of TV content contract renewals. Fiber-related expenditures rose, driven by the consolidation of Fiberklaar, and account for 30% of the total CapEx. By end-June 2025, fiber deployment covered 2,416,000 premises, representing over 40% FttH population coverage and 45% when including "fiber in the street."
- For the second quarter of 2025, Proximus Group reported a total Free Cash Flow of EUR 185 million, and EUR 31 million organic FCF (i.e. excluding M&A and proceeds from asset sales). This brings the year-to-date June 2025 total FCF to EUR 266 million or EUR 5 million on an organic basis. This compares to EUR 115 million organic FCF for the same period of 2024, with the year-on-year improvement mainly driven by higher underlying Group EBITDA, lower Cash Capex and a favorable year-on-year impact from change in working capital.
Jan Van AcoleyenCEO ad interim of the Proximus GroupThis will be my final financial results statement as interim CEO, as we prepare to welcome Mr. Stijn Bijnens as the new Proximus Group CEO, effective 1 September. We are confident that Stijn is a perfect fit to lead Proximus in its new strategic cycle based on our key assets and to further strengthen Proximus' position in our domestic market and internationally.
Today we announce our second quarter results of 2025 which overall reflect for Domestic, our largest segment, very strong results, while we have also faced increased challenges in Proximus Global.
For Domestic, I am pleased to present a continued strong execution of our strategy and the remarkable work of our teams in sustaining our commercial progress in times of intense market competition. With another strong quarter for the Domestic segment closed, we can comfortably increase our Domestic EBITDA outlook for the year. Thanks to our continued product superiority across our fixed and mobile offers, and our multi-brand strategy which allows us to effectively manage customer value propositions, we mitigated the impact of the new market entrant. This is reflected in our strong operational results, especially for Residential Mobile Postpaid. Proximus continues to benefit from its top-quality networks, crucial drivers of our commercial success. Our nationwide Fiber roll-out continued and has now reached 2.4 million homes and businesses and providing Fiber in the Street coverage of > 45%.
Regarding the fiber negotiations in Flanders, Proximus, Fiberklaar Telenet and Wyre have strongly progressed to reach an agreement in principle on the terms of a future collaboration to accelerate the deployment of fiber networks across Flanders. Parties are working closely with the BCA and BIPT in view of starting a market test in September.
In the South, we have just signed a Memorandum of Understanding with Orange Belgium to expand the deployment of Fiber and the access to gigabit networks in Wallonia. This memorandum of understanding reflects the shared ambition of operators to collaborate in expanding fiber deployment in the less densely populated regions of Wallonia. The collaboration would also allow a greater number of users to benefit from the advantages and speed of existing gigabit networks, while limiting construction works .The objective would be to ultimately cover approximately 70% of Walloon households with a FTTH (Fiber-to-the-Home) network.
For Proximus Global, the macro-economic effects, in addition with the further slowdown of the CPaaS SMS market affected some segments strongly, while operational integration headwinds impacted the Go-to-Market. While we are convinced Proximus Global's unique market position will drive mid-term value, for 2025, we will face a delay in revenue and margin synergy delivery and therefore adjust our full-year EBITDA outlook downwards for Proximus Global.
We have announced organizational changes at Route Mobile, with Mr. Rajdipkumar Gupta, Founder and Managing Director, re-appointed as CEO. In addition, a new global CEO will be appointed soon. To enhance Global's performance, we are intensifying efforts to overcome integration challenges and accelerate our transformation to omnichannel.
Mark ReidGroup CFOFollowing the continued strong performance in the Domestic segment, we are upgrading our Domestic EBITDA guidance from 'broadly stable' year-on-year to an increase by up to 2%. The Domestic revenue is expected to remain broadly stable, be it with an improving mix, with higher Services revenue offsetting lower revenue from terminals.
Turning to Proximus Global, the first quarter headwinds in the CPaaS SMS segment intensified as we progressed into the second quarter. Industry trends such as the transition from CPaaS SMS to other more cost optimal channels for customers, significantly impacted the SMS-based business. Moreover, leadership changes earlier this year and integration challenges impacted the Go-to-Market performance, impeding the topline and margin synergy ambitions.
Considering these challenges, we expect the Proximus Global EBITDA to be down year-on-year by 5% to 10%, in comparison to a 20% growth before, despite the successful implementation of cost synergies.
In aggregate, the full-year Proximus Group EBITDA is expected to grow up to 1% compared to around +2% previously. Our Group CapEx and organic FCF expectations for the year remain unchanged.
Key Figures
Operationals, in thousands
| Net adds in the quarter | Park at end of quarter | |||||
|---|---|---|---|---|---|---|
| 2024 | 2025 | 2024 | 2025 | % Change | ||
| Fiber | Homes Passed | 143 | 107 | 1,983 | 2,416 | 21.8% |
| Activated retail lines | 40 | 38 | 481 | 646 | 34.3% | |
| Residential customers | Convergent | 15 | 11 | 1,146 | 1,194 | 4.2% |
| Group (subscriptions/SIM cards) | Internet | 11 | 4 | 2,291 | 2,323 | 1.4% |
| TV | -9 | -13 | 1,650 | 1,601 | -3.0% | |
| Fixed Voice | -34 | -39 | 1,574 | 1,418 | -9.9% | |
| Mobile Postpaid (excl. M2M) |
24 | 38 | 5,018 | 5,127 | 2.2% | |
| M2M | 25 | 11 | 4,298 | 4,352 | 1.3% | |
| Prepaid | -11 | -14 | 509 | 439 | -13.8% | |
Financials (EUR million)
| 2nd Quarter | Year-to-date | ||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2025 | % Change | 2024 | 2025 | % Change | ||
| Revenue (underlying) |
Group | 1,599 | 1,544 | -3.4% | 3,102 | 3,180 | 2.5% |
| of which Domestic | 1,200 | 1,192 | -0.7% | 2,401 | 2,408 | 0.3% | |
| of which Global | 415 | 367 | -11.6% | 731 | 803 | 9.7% | |
| Direct Margin (underlying) |
Group | 1,016 | 1,024 | 0.8% | 2,010 | 2,070 | 3.0% |
| of which Domestic | 900 | 914 | 1.6% | 1,803 | 1,840 | 2.1% | |
| of which Global | 119 | 113 | -4.5% | 213 | 237 | 11.4% | |
| Expenses (underlying) |
Group | -536 | -533 | -0.5% | -1,076 | -1,098 | 2.0% |
| of which Domestic | -463 | -469 | 1.3% | -941 | -964 | 2.4% | |
| of which Global | -76 | -68 | -10.3% | -140 | -141 | 0.8% | |
| Group Ebitda (underlying) |
Group | 480 | 491 | 2.3% | 934 | 971 | 4.1% |
| as % of revenue | 30.0% | 31.8% | 1.8 p.p. | 30.1% | 30.6% | 0.5 p.p. | |
| of which Domestic | 437 | 446 | 1.9% | 861 | 876 | 1.7% | |
| of which Global | 43 | 45 | 5.8% | 72 | 96 | 31.9% | |
| Group Ebitda (reported) |
486 | 598 | 23.2% | 951 | 1.163 | 22.4% | |
| Net income | 91 | 178 | 96.1% | 191 | 318 | 66.3% | |
| Accrued capex (excl. spectrum & football rights) |
291 | 272 | -6.4% | 585 | 542 | -7.3% | |
| Organic Free Cash Flow | -3 | 31 | n.r. | -115 | -5 | 95.8% | |
| Adjusted net fin position (excl. lease liabilities) |
n.r. | n.r. | -4,163 | -3,733 | 10.3% | ||
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Notes
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Key financials – on pro forma basis
| 2nd Quarter Pro forma 1 | Year-to-date Pro forma 1 | ||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2025 | % Change | 2024 | 2025 | % Change | ||
| Revenue (underlying) |
Group 2 | 1,636 | 1,544 | -5.6% | 3,247 | 3,180 | -2.1% |
| Domestic | 1,200 | 1,192 | -0.7% | 2,401 | 2,408 | 0.3% | |
| Global | 452 | 367 | -18.8% | 876 | 803 | -8.4% | |
| Direct Margin (underlying) |
Group | 1,024 | 1,024 | 0,0% | 2,043 | 2,070 | 1.3% |
| Domestic | 900 | 914 | 1.6% | 1,803 | 1,840 | 2.1% | |
| Global | 127 | 113 | -10.8% | 246 | 237 | -3.6% | |
| Expenses (underlying) |
Group | -539 | -533 | -1.1% | -1,091 | -1,098 | 0.7% |
| Domestic | -463 | -469 | 1.3% | -941 | -964 | 2.4% | |
| Global | -79 | -68 | -14.1% | -154 | -141 | 8.5% | |
| Ebitda (underlying) |
Group | 485 | 491 | 1.2% | 953 | 971 | 2.0% |
| as % of revenue | 29.6% | 31.8% | 2.1 p.p. | 29.3% | 30.6% | 1.2 p.p. | |
| Domestic | 437 | 446 | 1.9% | 861 | 876 | 1.7% | |
| Global | 48 | 45 | -5.4% | 91 | 96 | 4.5% | |
| Group Ebitda (reported) |
491 | 598 | 21.9 | 969 | 1.163 | 20.0% | |
| Net income (reported) |
96 | 178 | 85.8% | 210 | 318 | 51.3% | |
| Accrued capex (excl. spectrum & football rights) |
292 | 272 | -6.6% | 586 | 542 | -7.5% | |
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Notes
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Guidance 2025
Based on the strong first-half 2025 for Proximus's Domestic segment, the full-year 2025 Domestic EBITDA guidance is raised from "broadly stable to 2024" to an increase by up to 2%. This results from a combination of an improved revenue mix, with higher Services revenue offsetting lower revenue from terminals, and from cost improvement. The expected revenue from Domestic for the full-year 2025 remains "broadly stable" compared to the previous year.
Regarding Proximus Global, the first-quarter headwinds intensified over the past months. Industry trends such as the transition from CPaaS SMS to other more cost optimal channels for customers, significantly impacted the SMS-based business. Moreover, leadership changes earlier this year and integration challenges impacted the Go-to-Market performance, impeding the topline and margin synergy ambitions. Consequently, the Proximus Global EBITDA is expected to be down year-on-year by 5% to 10%, in comparison to a 20% growth before, despite the successful implementation of cost synergies.
In aggregate, the full-year Proximus Group EBITDA is expected to grow up to 1% compared to around +2% previously. The Group CapEx and organic FCF expectations for the year remain unchanged.
| Guidance metric | FY 2024 Actuals |
YTD 2025 Actuals |
Outlook FY 2025 As presented on 28 Feb 2025 |
Outlook FY 2025 Updated on 25 July 2025 |
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|---|---|---|---|---|---|---|
| Underlying Domestic revenue | EUR 4,826 million | +0.3% | Broadly stable | Broadly stable | ||
| Domestic underlying EBITDA | EUR 1,682 million | +1.7% | Broadly stable | Growth up to 2% | ||
| Underlying Global EBITDA 1 | EUR 188 million | +4.5% | Around +20% | Decline 5%-10% | ||
| Underlying Group EBITDA 1 | EUR 1,869 million | +2.0% | Around +2% | Growth up to 1% | ||
| Capex (excluding Spectrum & football rights) | EUR 1,355 million | EUR 542 million | Around EUR 1.3 billion | Around EUR 1.3 billion | ||
| Organic adj. FCF (excl. asset sales) | EUR 58 million | EUR -5 million | Stable | Stable | ||
| Net debt / EBITDA (as per S&P definition) |
2.9x | n.r. | Around 3.0x | Around 3.0x | ||
| Gross dividend | EUR 0.60/share | n.r. | EUR 0.60/share 2 | EUR 0.60/share 2 | ||
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Notes The outlook does not take into account the sale of BeMobile for which the precise closing date is unknown (expected in H2 2025).
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Shareholder remuneration
In line with the Capital Markets Day announcement in January 2023, Proximus rebased its dividend level to EUR 0.60 per share for the year 2025. The rebased dividend level incorporates all known macro and inflationary headwinds, closed M&A transactions, as well as 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 the appropriate levels of distributable reserves.
Proximus will return the expected dividend of EUR 0.60 per share over the result of 2025 in 2 tranches: a gross interim dividend of EUR 0.30 per share payable in December 2025 and the remaining normal gross dividend of EUR 0.30 gross per share payable in April 2026, pending approval by the 2026 Annual General Meeting.
