• 2014 full-year guidance achieved 
  • Very solid operational performance benefitting from successful convergence strategy
  • Higher market shares for Mobile, Digital TV and Fixed Internet 
  • Fit-for-Growth strategy well on track.  2015 tipping point with core[1] underlying[2] revenue and Group underlying EBITDA estimated to be stable to slightly positive.
Key Highlights
  • The focus on improving customer experience, grouping all products and services under the Proximus brand, resulted in strong operational results in 2014:
    • Total mobile customer base of 5,677,000, an increase of 389,000 (+10.4% YoY) Mobile Postpaid cards and a decrease of 196,000 Mobile Prepaid cards (-11.2% YoY) 
    • Proximus TV customers: 1,593,000, an increase of 128,000 (+8.7%)
    • Fixed Internet customers: 1,740,000, a rise of 63,000 (3.8%)
    • Number of 4-play households growing by 14.3% compared to end 2013
  • Full-year 2014, the underlying revenue totaled 5,864 million, 1.6% lower than for 2013. Belgacom's 2014 underlying Core revenue remained fairly stable (-0.2%) to 2013, with both the Consumer and Enterprise underlying revenue positive YoY on solid Fixed and recovering mobile business as well as convergence success.
  • Total underlying operating expenses decreasing 1.2% YoY, including a provision for the Walloon region pylon tax.
  • Belgacom ended 2014 with underlying EBITDA at EUR 1,653 million, 2.5% lower than for 2013.  Including the net gain on disposed companies and building sales, the Group EBITDA was EUR 1,755 million, 3.3% higher than for 2013.
  • Net income full-year 2014 was EUR 654 million, up 3.8% versus the prior year, including greater capital gains on building sales and disposed companies than the previous year.
  • Belgacom invested EUR 978 million (excluding spectrum capex) in enhancing customer experience in 2014. 
  • Free Cash Flow of EUR 711 million for the full-year, up 206 million YoY, including higher cash received from the sale of consolidated companies and buildings.
2014 shareholder return

On 26 February 2015, Belgacom's Board of Directors approved to propose to the Annual Shareholder meeting to return over the result of 2014 a total gross dividend of EUR 1.50 per share, of which EUR 0.50 interim dividend was paid in December 2014. The Board of Directors also confirmed their intention to return a stable total gross dividend of EUR 1.50 per share over the result of 2015 and 2016. 

Dominique Leroy, CEO of Belgacom

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"I'm pleased to announce that we have closed the year 2014 on a strong note.  In a highly competitive market we achieved our 2014 revenue and EBITDA guidance.  Moreover, we realised a strong set of operationals strengthened by our continued efforts to improve the overall customer experience, combined with our great position to offer attractive convergent solutions.  Especially in the fourth quarter we saw good growth in our customer base thanks to a successful year-end campaign launched under the new Proximus brand.  As a result, we have closed the year with a higher market share for Mobile, Digital TV and Fixed Internet.  

With the good progress made so far on our Fit-for-Growth strategy, we are well on track to deliver our underlying Revenue and EBITDA growth objective in 2016.  We believe the year 2015 will be the tipping point within our track to growth. Under current market conditions, we estimate to end the year 2015 with a core underlying revenue and a Group underlying EBITDA stable to slightly positive versus the comparable base of 2014."

[1] Group results excluding BICS

[2]   Adjusted for incidentals to get a better view of the ongoing business performance.

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