Orange Belgium (OBEL) H1 2024 earnings summary

Executive summary

• Achieved nationwide gigabit network coverage six months ahead of schedule, reaching 95% of Belgian households and positioning as the first nationwide gigabit provider.

• Nethys exchanged its VOO shares for an 11.1% stake (7.47m new shares), making VOO a fully owned subsidiary and streamlining group structure.

• Mobile postpaid and cable customer bases grew 4.5% year-on-year, with net adds of 74,000 and 18,000 respectively, surpassing 1 million cable customers.

• Strategic initiatives included new mobile subscription portfolios, expanded refurbishment and sustainability offers, and a no-code start-up program.

• Integration of VOO and BKM-Orange mergers streamlined operations and improved efficiency.

Financial highlights

• H1 2024 revenues reached €977.6m, up 2.5% year-on-year, mainly from convergent service and retail revenue growth.

• EBITDA/EBITDAAL rose nearly 14% year-on-year to €252.9m, with margin improving to 25.9% of revenues, supported by synergies and positive one-off items.

• eCAPEX (excluding license fees) increased by 7.2% to €180.1m, reflecting network investments.

• Net loss for H1 2024 was €17.7m, compared to €15.4m loss in H1 2023.

• Adjusted operating cash flow increased to €72.8m (+4.7% year-on-year), and net cash from operating activities rose to €279.6m.

Outlook and guidance

• 2024 EBITDA/EBITDAAL guidance raised to slightly exceed €535m (previously €515m–€535m), with eCAPEX expected between €365m and €385m.

• Full-year EBITDA growth expected just below 10%, with H2 performance anticipated to be lower than H1 due to seasonality and new market entrants.