Proximus (PROX) Q4 2024 earnings summary

Executive summary

• Achieved 2025 EBITDA target a year early, with strong commercial and financial performance across all segments and robust network expansion, including 68% 5G and 37% fiber coverage.

• Domestic revenue grew 3.4% year-over-year, with stable Q4 EBITDA and 2.8% annual EBITDA growth; Proximus Global EBITDA up 6.6% pro forma.

• Fiber coverage expanded to over 2.2 million homes/businesses (37% coverage), with 564,000 activated fiber customers and >42% of the population having fiber in the street.

• Maintained high customer satisfaction and strong Net Promoter Scores, despite inflation-driven price increases and heightened competition.

• Major asset sales progressing, with €238M proceeds expected soon and >€500M targeted by 2027.

Financial highlights

• FY24 Group revenue up 3.4% YoY to €6,430M; Group EBITDA up 3.1% YoY to €1,869M (pro forma); net income for 2024 at €456M (+27.8% YoY).

• Domestic revenue up 3.2% YoY in Q4; Residential revenue up 4.3% YoY, with 7.8% convergent revenue growth.

• B2B Q4 revenue up 2.1% YoY, with IT services up 8.4%, offsetting mobile and fixed voice declines.

• CapEx for 2024 totaled €1,355M, considered a peak investment year, with 29% focused on fiber.

• Adjusted free cash flow for 2024 was €58M, slightly down YoY due to higher CapEx, tax, and interest payments.

Outlook and guidance

• 2025 guidance: Domestic revenue and EBITDA expected broadly stable; Proximus Global EBITDA to grow ~20%; Group EBITDA to increase ~2%.

• CapEx for 2025 forecasted at approximately €1.3 billion, with similar levels expected through 2028-2029.

• Adjusted group free cash flow for 2025 expected to be broadly stable; net debt/EBITDA to remain around 3x.

• Dividend policy maintained at €0.60/share for 2024 and 2025, paid in two tranches.