Route Mobile (ROUTE) Q3 24/25 earnings summary

Executive summary

• Proximus Group formed Proximus Global, integrating BICS, TeleSign, and Route Mobile to leverage combined capabilities and global reach, with leadership focused on international expansion and operational alignment.

• Achieved consolidated revenue of ₹1,183.79 crores for the quarter ended 31 December 2024, up from ₹1,024.31 crores YoY, and 13.4% YoY revenue growth to 34,006 mn for 9M FY24-25.

• EBITDA grew 9.1% YoY to 4,084 mn for 9M FY24-25, with EBITDA margin at 12.0%; PAT for 9M FY24-25 was 2,674 mn, down 4% YoY.

• Route Mobile continues to outperform industry peers in revenue and profitability growth despite macro headwinds and industry shifts.

• Board recommended an interim dividend of ₹3 per share (30% of face value) on 28 January 2025.

Financial highlights

• Revenue from operations grew 13.1% YoY for nine months FY 2025, reaching INR 34,006 million; Q3 FY24-25 revenue rose 15.6% YoY to 11,838 mn.

• Gross profit margin stable at 21.1%-21.3% in Q3 and 9M FY24-25; EBITDA margin for nine months FY 2025 was 12%.

• PAT declined by 4% YoY for nine months FY 2025; basic EPS for 9M FY24-25 was 41.72.

• Free cash flow conversion was strong at 102%; net cash as of Dec 31, 2024, stood at 7,457 mn.

• Total income for the quarter was ₹1,192.42 crores, with total expenses at ₹1,085.47 crores.

Outlook and guidance

• Management maintains a 15% CAGR growth guidance over the next three years, with a focus on outperforming Q4 FY 2025.

• EBITDA margin guidance remains at 12.5%-13% on an adjusted basis, despite one-off costs and related party margin dilution.

• Focus on leveraging Proximus Global synergies to strengthen global digital communications leadership and expand product portfolio.

• Management does not anticipate further provisions for the outstanding balance under an onerous contract, based on legal assessment and ongoing renegotiations.