Proximus (PROX) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered strong operational and financial results, prompting an upgrade in full-year guidance to up to 3% Group EBITDA growth year-over-year.

• Domestic segment saw robust customer growth, with mobile postpaid up 47,000, internet up 9,000, and convergent customers up 13,000; TV and fixed voice losses were contained.

• Strategic execution advanced with domestic fiber expansion surpassing 2.1 million homes, international B2B growth, asset divestments, and new partnerships, including a €700 million hybrid bond issuance.

• Route Mobile and Fiberklaar acquisitions completed, strengthening international and fiber positions.

• Interim dividend of €0.50/share approved, with a rebased dividend of €0.60/share for 2024-2025.

Financial highlights

• Q3 2024 Group EBITDA reached €480 million, up 1.6% year-over-year on a pro forma basis; domestic revenue grew 1.5%, and international EBITDA rose 4.2%.

• Group underlying revenue for Q3 was €1,638 million (+0.2% pro forma YoY); net income for Q3 was €185 million, with YTD net income at €377 million (+40.9% YoY).

• CapEx for the first nine months totaled €874 million, down 3% year-over-year.

• Adjusted free cash flow for Q3 was €161 million, with YTD at €48 million.

• EBITDA margin for Q3 was 29.3%; net debt/EBITDA at 3.1x as of Q3 2024.

Outlook and guidance

• Full-year 2024 group EBITDA and domestic revenue/EBITDA expected to grow up to 3% pro forma.

• International direct margin expected to grow mid-single digit, with some impact from longer sales cycles and timing of synergies.

• CapEx guidance reiterated at €1.36 billion for 2024; dividend rebased to €0.60/share, with €0.50/share interim dividend in December 2024.