Belgian telecommunications group Proximus saw its domestic revenues rise by 4.5% in the first quarter of the year to €1.2 billion, driven by new customers and price increases put in place due to inflation.
The mobile, internet and television services provider – 53% of which is owned by the Belgian State – reported a generally positive first quarter in 2024, particularly in Belgium.
Domestic revenue for Proximus rose 4.5% from the first quarter of 2023, reaching €1.2 billion. Growth was strongest among its residential customers, where revenues grew by 5.9%. The group said that its success was due to continued customer growth, as well as price increases linked to inflation.
Proximus announced a number of rate hikes to its subscriptions in the past year, citing cost pressures. The group said that in the first quarter of 2024, it gained an additional 21,000 mobile customers and 12,000 internet users. However, it saw TV subscriptions drop by 15,000, and fixed-line subscriptions decrease by 43,000.
Proximus reported domestic Ebitda (earnings before interest, taxes, depreciation and amortisation) of €424 million, up by 4.7% compared to the same period in 2023. Internationally, the group reported a direct margin increase of 0.6%, but saw a revenue decrease of 10.3% to €316 million.
Growth 'ahead of expectations'
Proximus CEO Guillaume Boutin stated that the company's first quarter performance was "ahead of our initial expectations," in a press release. "While we remain cautious at this point of the year, this set of results gives me great confidence in achieving our objectives set for 2024."
He said that the group is "paving the way" towards its goal of becoming a global digital communications company, as it nears the final stages of acquiring Indian company Route Mobile in a deal worth almost €650 million.
Overall, the group recorded a year-on-year increase of 1.2% in underlying revenue, reaching €1.5 billion, and a 5% rise in Ebitda over the same period, amounting to €454 million.
Considering all known macroeconomic and inflationary effects, as well as anticipated market structure changes, Proximus announced an adjustment for 2024 and 2025, setting its dividend level to €0.60 per share.
