In This Article:
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Revenue: EUR2 billion, a 1.7% year-on-year growth.
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EBITDA: EUR544 million, a 10.1% year-on-year increase.
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CapEx: EUR368 million, a 1.4% year-on-year increase.
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Mobile Postpaid Customers: Grew by 4.4% to 3.7 million.
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Cable Customer Base: Increased by 3.5% to over 1 million customers.
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Synergies from VOO Integration: EUR47.5 million achieved in 2024.
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Convergent Offers Revenue: Grew by 8.9% year-on-year, contributing EUR611 million.
Release Date: February 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Orange Belgium SA (XBRU:OBEL) achieved strong financial growth in 2024, with revenues increasing by 1.7% year-on-year, reaching almost EUR2 billion.
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The company successfully integrated VOO, achieving EUR47.5 million in synergies, which is ahead of their initial estimates.
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Orange Belgium SA (XBRU:OBEL) expanded its mobile postpaid customer base by 4.4% year-on-year, reaching 3.7 million customers.
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The company improved its 5G coverage significantly, now reaching 93% across Belgium.
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Sustainability initiatives led to a 5% reduction in CO2 emissions and the sale of 18,000 refurbished phones, reflecting a commitment to environmental responsibility.
Negative Points
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Wholesale revenues and equipment sales declined, partially offsetting gains in retail service revenues.
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The company faces increased competition in 2025 with the entry of a new mobile player in the Belgian market.
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CapEx increased slightly by 1.4% to EUR368 million, reflecting ongoing investment needs.
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Labor costs are expected to remain stable in 2025 despite a 3.5% indexation increase, posing a potential financial challenge.
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The company does not foresee the potential for dividend payouts until the net debt ratio is reduced, which remains high at around 3.5.
Q & A Highlights
Q: Can you update us on your long-term expectations regarding VOO synergies and the key building blocks for EBITDA growth in 2025? A: Antoine Chouc, CFO: We plan to reach the EUR85 million synergy run rate by year four post-closing, ahead of the initial seven-year estimate. The growth in EBITDA for 2025 will be driven by increased synergies and cost efficiencies beyond synergies, including digitization and operational improvements.
Q: Regarding the FTTP rollout, how are you addressing competition and potential cooperation with Proximus? A: Xavier Pichon, CEO: We are preserving our premium network in the former VOO areas and have started FTTP rollout in Brussels. We are in discussions with Proximus for potential cooperation to optimize customer access to gigabit networks.