Proximus (PROX) Q2 2025 earnings summary

Executive summary

• Strong domestic performance in Q2 2025 with service revenue and EBITDA growth, offsetting Global segment headwinds and integration challenges.

• Fiber network coverage surpassed 45% of Belgian homes and businesses, with over 80% 5G indoor coverage and 646,000 active fiber customers.

• Signed MoU with Orange Belgium to accelerate fiber deployment and optimize network utilization in Wallonia, targeting 70% coverage.

• Asset disposal program ahead of schedule, target raised to €600M by 2027 after early achievement of initial €500M goal.

• Global segment faced accelerated headwinds in the CPaaS SMS market and integration challenges, partially offset by OpEx synergies.

Financial highlights

• Domestic service revenue grew 1.1–1.6% in Q2, with EBITDA up 1.9% year-over-year.

• Group EBITDA reached €491M in Q2, up 1.2% year-over-year; net income for H1 2025 was €313–318M, up over 64% year-over-year.

• CapEx for H1 2025 was €542M, on track for full-year guidance of €1.3B.

• Free cash flow for H1 2025 at €266M, with organic free cash flow at negative €5M, a year-over-year improvement.

• Proximus Global revenue declined 18.8% in Q2, with direct margin down 10.8% and EBITDA down 5.4% year-over-year.

Outlook and guidance

• Upgraded 2025 domestic EBITDA guidance to up to 2% growth; total domestic revenue expected to remain stable.

• Proximus Global EBITDA guidance revised to a 5–10% year-over-year decline, compared to previous 20% growth expectation.

• Group EBITDA growth now expected up to 1% for 2025, down from 2% previously; CapEx and organic free cash flow guidance unchanged.

• Dividend policy confirmed at €0.60/share for 2025, split between interim and final payments.

• Net debt/EBITDA expected around 3.0x for FY 2025.