Proximus Sa · EURONEXT:PROX
Proximus Sa — Q1 2025 Earnings Presentation
39 slides from Proximus Sa's earnings presentation, May 9, 2025
Slide 1: Q1 2025 Results presentation
Q1 2025 Results presentation 9 May, 2025 Jan Van Acoleyen Mark Reid CEO Group a.i. Group CFO
Slide 2: Cautionary statement
Cautionary statement This presentation is a subset of the company’s results release. Please consult proximus.com/investors for the overall disclosed information. This communication may include some forward-looking statements, without limitation, regarding Proximus’ financial or operational results,
Slide 3: Agenda
Agenda › Highlights › Results overview Q1 2025 › Q&A
Slide 4: A positive start to the year
A positive start to the year. • Showing strong resilience as the market landscape evolves and competition intensifies. • On B2C, the multi-brand and value strategy clearly delivers in new market structure. • Proximus B2B experienced a successful quarter for its IT segment while focusing on value cus
Slide 5: Strong start to the year in both Domestic and Global markets
Strong start to the year in both Domestic and Global markets Domestic Global Group EBITDA +2.8% +3.7% Revenue Direct margin at CC growth on (m€; %YoY) +1.2% (m€, %YoY on pro forma basis) both segments +4.1% (m€; YoY on pro 481 468 forma basis) ✓ Resilience in ✓ Growing DM for competitive market 1,20
Slide 6: Keeping positive growth for Residential, while navigating in a more competitive market
Keeping positive growth for Residential, while navigating in a more competitive market Quarterly Net adds – Total Domestic (total Residential, Business, Tango, in ‘000) Fixed Voice base 1,456K; -151k YoY, -9.4% YoY Internet base Postpaid base Convergence base 2,318K; 5,088K; 1,183K; -43 -34 -35 -40
Slide 7: Our multi-brand strategy provides a segmented approach, protecting maximum value
Our multi-brand strategy provides a segmented approach, protecting maximum value Our 3 brands are activated to limit battlefield A 3-layer strategy in the low/mid-end segment High Proximus protects value by Premium re-enforcing premiumness Perceived price Mid end Mobile Vikings maintains the lead on
Slide 8: A strengthened portfolio across our brands has helped lessen the effects of new competition
A strengthened portfolio across our brands has helped lessen the effects of new competition. Mobile port to DIGI Weekly evolution Early customer Mobile ports to DIGI slowed and started to stabilize below 1/7th of launch-peak end-December New entrant launch W49 W50 W51 W52 w1 w2 w3 w4 w5 w6 w7 w8 w9
Slide 9: Our top networks remain a significant competitive advantage in the market
Our top networks remain a significant competitive advantage in the market. Proximus big winner in 5G indoor coverage Fiber being deployed in #1 OpenSignal's Mobile 75% nation-wide 171 171 cities and municipalities Network Experience Report. Brussels >75% HP Gradual phase-out 3G started Proximus Unif
Slide 10: The fiber footprint is expanding to over 38% HP
The fiber footprint is expanding to over 38% HP, with Fiber in the Street reaching more than 43% of the population. 2,309k +85k >43% Fiber in the street Fiber Homes & Fiber Homes & Businesses Passed end-Q1 Businesses Passed in Q1 308k living units funnel 2.6M premises coverage Fiber in Fiber HP (par
Slide 11: Fiber remains a significant contributor to our commercial success
Fiber remains a significant contributor to our commercial success, with now over 600k Fiber connections activated. FIBER Migration rate ARPC in € Total park & net adds (in K) +5€ ~68% Copper Fiber +38% 607 564 519 481 441 44 45 43 40 38 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Fiber park: active Residential +
Slide 12: Fiber collaboration discussions progressing well
Fiber collaboration discussions progressing well Outside collaboration scope Collaboration scope for fiber deployment and network usage Dense ~30% Mid- Dense ~50% Rural ~20% Fiber already Fiber or other Fiber mostly deployed Gigabit broadband technology Discussions ongoing + & + 12
Slide 13: Proximus Global gaining traction in global digital communications
Proximus Global gaining traction in global digital communications 1st joint presence Product launches at Mobile World Congress Barcelona 2025 • eSim hub • 365guard • RCS coverage expansion New partnership Network API Solution Awards 13
Slide 14: Results Q1 2025
Results Q1 2025
Slide 15: Domestic revenue growth sustained with +1.2% YoY in Q1
Domestic revenue growth sustained with +1.2% YoY in Q1, revenue from Services up by +1.9% YoY Revenue (underlying, M€) +1.2% 6 15 1,216 -3 -3 1,201 +1.9% Services revenue Q1’24 Residential Business Wholesale Non-Services Q1’25 Customer Services Services Revenue* Services *Aggregate of Residential Pr
Slide 16: Residential revenue for Q1 up by +0.5% YoY
Residential revenue for Q1 up by +0.5% YoY, driven by sustained strong revenue growth from Services, up by 3.1% in Q1 Residential revenue* (M€, YoY ) 5.6% 5.0% 3.0% 2.8% Fading double impact of price 0.5% indexations 643 618 614 618 621 58 55 53 56 55 76 71 70 89 63 Customer Services revenue +3.1% Y
Slide 17: Residential services revenue keeps a strong profile with convergent customers
The Residential services revenue keeps a strong profile, with a high and growing portion of revenue from Convergent customers Customer services revenue up by +3.1% YoY* Customer base (in K) • Convergent revenue grew +6.4% +0.7% • 64% of the services revenue is generated by convergent customers 2,821
Slide 18: Q1 Business revenue up by 1.5%
Q1 Business revenue up by 1.5%, including strong increase in IT services and products Business revenue* (M€, YoY) Services revenue -0.7%, 5.1% Increase in IT Services, offset by decline in 3.4% 2.3% 1.5% Mobile Services and Fixed Voice -1.0% Products revenue +13.3%, 504 506 485 506 512 Driven by exc
Slide 19: B2B Services revenue slightly down
B2B Services revenue slightly down as healthy growth in IT Services and Fixed Data was more than offset by Mobile and headwinds in Fixed Voice. Business Services revenue* (M€) +4.3% IT Services • Driven by growth in Cloud, Security,Workplace and Smart Mobility services -0.7% 412 409 +0.8% Fixed Data
Slide 20: Strong growth in Wholesale Services offsetting interconnect decline
Strong growth in Wholesale Services offsetting the YoY decline in low margin interconnect revenue Wholesale revenue (M€, YoY) 3.7% 0.0% 0.9% -4.4% -4.4% 64 68 63 Fixed & Mobile Services revenue +16.3% 59 60 • Higher MVNO volumes 23 • Additional roaming 23 21 19 24 • Services provided to JV’s Interco
Slide 21: Q1 OpEx increased following topline growth and transformation initiatives
Despite efficiencies outpacing inflation effects, Q1 OpEx increased following topline growth & strategic transformation initiatives OpEx (management view, underlying, M€) Domestic OpEx (M€) +3.4% 3.4% 495 7 495 9 479 479 Q1’24 WF Non-WF Q1’25 Domestic headcount (FTE) 239 40 10,371 10,222 -428 Q1’24
Slide 22: Domestic EBITDA grew by +1.5% YoY
Domestic EBITDA grew by +1.5% YoY with growth in Direct margin outpacing the higher OpEx (M€) +1.5% -9 23 -7 430 424 Q1’24 Direct margin Workforce costs Non-Workforce costs Q1’25 22
Slide 23: Proximus Global Direct margin moves up on strong growth in CPaaS
Proximus Global Direct margin moves up on strong growth in CPaaS Omnichannel solutions Revenue (M€) +2.4% at constant currency On pro forma basis** +2.7% 452 468 473 424 436 138 147 157 156 145 Direct margin up +3.7% (constant currency) 286 305 311 317 291 ✓ Higher margin in CPaaS Omnichannel Q1’24
Slide 24: Proximus Global EBITDA up +15.3% on a pro forma basis
Proximus Global EBITDA up +15.3% on a pro forma basis EBITDA (M€) On pro forma basis ✓ Healthy Q1 Direct margin growth ✓ Lower OpEx, as synergies deliver +15.3% 51 51 49 48 45 45 44 43 42 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 “Pro forma”: including Route Mobile over the period Jan -A
Slide 25: YTD 2025 Group CapEx of 270M€, on track for full-year outlook
YTD 2025 Group CapEx of 270M€, on track to deliver full-year outlook of c.1.3B€ Group CapEx M€, booked, excl. spectrum & football rights On pro forma basis -8.5% 294 270 • Cyclicity of TV content contract renewals (incl. in Other CapEx). • Fiber investments higher YoY following Fiberklaar consolidat
Slide 26: Q1 Organic FCF YoY improved
Q1 Organic FCF YoY improved, benefiting from higher EBITDA, positive change in WC and lower cash CapEx Incl proceeds from datacenter business Q1 FCF Operations Investing ( YoY, M€) 81 116 -40 -11 32 -36 78 -10 27 16 -112 -128 Reported FCF Adjustments Organic FCF Underlying Change in Interests paid I
Slide 27: Asset disposal program very well advanced
Asset disposal program very well advanced, with 330M€ proceeds confirmed and on track to deliver >500M€ by 2027 30M€ received 63M€ for HQ in Q4’23 HQ sold in Q2’25 : Active management of non-core assets supports the Group FCF 130M€ datacenter throughout the elevated >500M€ business Closed in Q1‘25 i
Slide 28: Reiterating our outlook for 2025
Reiterating our outlook for 2025 YTD 2025 Outlook Guidance metrics FY 2024 Actuals FY 2025 Underlying Domestic Dividend €4,826M +1.2% Broadly stable revenue policy Underlying Domestic EBITDA €1,682M +1.5% Broadly stable Over the 2025 result, intention to return a gross dividend Underlying Global EBI
Slide 29: Q&A
Q&A To ask a question, join the conference call → Register here for the Q&A to receive your dial-in details.
Slide 30: Appendix
Appendix
Slide 31: Reporting changes
Reporting changes • Limited change in customer segmentation The reporting of the Domestic segment includes a technical effect from the transfer of Scarlet Small Enterprise (SE) customers to the IT stack of the Proximus Group, without any impact on the aggregated Domestic Revenue or EBITDA. Before th
Slide 32: From reported to underlying – EBITDA adjustments
From reported to underlying – EBITDA adjustments Q1’24 Q1’25 (M€) (M€) Incl. capital gain - sale of the datacenter business 565 465 5 9 454 -25 6 -3 -1 -23 -2 1 481 -62 Reported Lease Lease Transformation Acquisitions, Litigation / Underlying Reported Lease Lease TransformationAcquisitions, Litigati
Slide 33: Q1 underlying Group EBITDA +2.8%, on pro forma basis
Q1 underlying Group EBITDA +2.8%, on pro forma basis Driven by Direct margin (all underlying, M€) Revenue Direct margin 1.5% 2.7% 12 1,636 5 1,046 15 -2 23 -1 1,611 1,019 +1.2% +2.4%* +2.5% +3.7%* Q1’24 Domestic Proximus Others** Q1’25 Q1’24 Domestic Proximus Others** Q1’25 Global Global OpEx EBITDA
Slide 34: EBITDA conversion to FCF Q1 2025
EBITDA conversion to FCF Q1 2025 (M€) 565 481 -84 -70 -64 -8 116 81 -363 -11 -36 Reported Adjustments Underlying Change in WC Interests paid Income Tax paid Cash Capex Cash Other Organic Adjustments Reported EBITDA EBITDA and received Investing FCF Q1’25 Q1 ’25 FCF Q1 ’25 Q1 ’25 Q1 ’25 34
Slide 35: Net income (Group share)
Net income (Group share) 36.9% 73 -27 -19 138 27 -14 -3 101 Capital gain - sale of the datacenter business (M€) Q1 2024 Underlying Adjustments D&A Net Tax expense Others (*) Q1 2025 EBITDA finance result * Others: Include non-controlling interests and Share of loss from associates 35
Slide 36: Strong liquidity position with near-term funding needs covered until 2028
Strong liquidity position with near-term funding needs covered until 2028 (M€, Proximus SA, incl. bond launched in April 2025) ~20% in next 5yrs ~80% in ≥ 5yrs Credit ratings New bond launched in April’ 25, coupon BBB+ S&P (negative outlook) of 3.75%, 10-yr maturity) A3 Moody’s (stable outlook) Matu
Slide 37: Adjusted Net Financial Position YTD 2025
Adjusted Net Financial Position (excl. lease liabilities) YTD 2025 Net fin position at end Net fin position December at end March (M€) 2024 Organic FCF M&A Divestments Dividends Own shares Other* 2025 Cash received for the sale of the datacenter business 3 13 130 -3,816 -1 -3,912 -36 -14 *Other: Mai
Slide 38: Shareholder structure
Shareholder structure Status 31/03/2025 Total number of shares Free-float Belgian Government Market Capitalization Gross Dividend yield 338,025,135 42% 56% ~€ 2.3Bn ~8.8% Number of shares Number of shares Number of shares % shares % Voting rights % Dividend rights with voting rights with dividend ri
Slide 39: Contact Investor Relations
Contact Investor Relations Nancy Goossens Investor Relations Lead Proximus Investor E-mail: Call: Relations website: investor.relations@proximus.com +32 2 202 82 41 www.proximus.com/en/investors