Proximus executives defended their strategy at a hearing in the Chamber's Public Enterprises Committee on Tuesday, highlighting the telephone operator's results, but also the constraints it is facing, which explain the fall in its share price.
"Proximus has built up a powerful industrial plan which, thanks to its ‘best in class’ execution, has enabled it to gain market share and deliver a growth profile that is among the best in Europe," said CEO Guillaume Boutin.
"I am convinced that this strategy prepares Proximus for the future and will allow us to gradually close the gap between its intrinsic value and its stock market value, as we approach the end of the peak of investment in fibre optics," the CEO added.
Share price falling under the weight of criticism
Proximus, which is 53% State-owned, has launched a vast fibre-optic roll-out plan in Belgium, later than other European operators. It is also involved in a number of operations abroad, particularly in the United States and India.
At the same time, it has to contend with the arrival of a fourth operator - the Romanian Digi- known for its aggressive commercial offer.
The hearing, which came after the Mouvement Réformateur (MR) and Nieuw-Vlaamse Alliantie (N-VA) criticised Proximus' strategy, had been requested by the company itself.
Although he initially refrained from mentioning political representatives by name, the Chairman of the Board of Directors, Stefaan De Clerck, warned of the consequences of the criticism being heard in the political world, including on Tuesday. ‘The share price has fallen again today as a result of these comments," he said. "I am appealing for people to be responsible in this kind of debate."
'Foreign investments under fire
However, the French-speaking liberals and Flemish nationalists did not disarm. "This discourse does not match the analyses made by those who follow market prices," said Vincent Scourneau (MR). He questioned the investments made abroad in particular.
"I may find it hard to follow, but these are considerable sums that could have been used in Belgium," he said.
The harshest criticism came from Michael Freilich (N-VA). Like others, he insisted on the considerable loss in value of the Proximus share, which was delisted from the BEL 20 a few months ago, and the weakness of its cash flow compared with other European companies.
'You haven't convinced the market'
His criticisms also included the extension of Mr Boutin's mandate by the Board of Directors while the government was on current affairs and parliament was in recess.
‘You haven't convinced me and you haven't convinced the market’, he said.
The Socialists, on the other hand, questioned the motives behind the political attacks on the Proximus management. "Perhaps the aim of some is to sell the State's shares or to negotiate the arrival of a new CEO," said Dimitri Legasse (PS).
However, the PS supported the idea of an external audit put forward by the N-VA's Freilich, which the MR had already endorsed.
