• Revenue: EUR2 billion, a 1.7% year-on-year growth.
• EBITDA: EUR544 million, a 10.1% year-on-year increase.
• CapEx: EUR368 million, a 1.4% year-on-year increase.
• Mobile Postpaid Customers: Grew by 4.4% to 3.7 million.
• Cable Customer Base: Increased by 3.5% to over 1 million customers.
• Synergies from VOO Integration: EUR47.5 million achieved in 2024.
• Convergent Offers Revenue: Grew by 8.9% year-on-year, contributing EUR611 million.

• Warning! GuruFocus has detected 9 Warning Signs with XBRU:OBEL.

Release Date: February 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Orange Belgium SA (XBRU:OBEL) achieved strong financial growth in 2024, with revenues increasing by 1.7% year-on-year, reaching almost EUR2 billion.
• The company successfully integrated VOO, achieving EUR47.5 million in synergies, which is ahead of their initial estimates.
• Orange Belgium SA (XBRU:OBEL) expanded its mobile postpaid customer base by 4.4% year-on-year, reaching 3.7 million customers.
• The company improved its 5G coverage significantly, now reaching 93% across Belgium.
• Sustainability initiatives led to a 5% reduction in CO2 emissions and the sale of 18,000 refurbished phones, reflecting a commitment to environmental responsibility.

Negative Points

• Wholesale revenues and equipment sales declined, partially offsetting gains in retail service revenues.
• The company faces increased competition in 2025 with the entry of a new mobile player in the Belgian market.
• CapEx increased slightly by 1.4% to EUR368 million, reflecting ongoing investment needs.
• Labor costs are expected to remain stable in 2025 despite a 3.5% indexation increase, posing a potential financial challenge.
• The company does not foresee the potential for dividend payouts until the net debt ratio is reduced, which remains high at around 3.5.

Q & A Highlights

Q: Can you update us on your long-term expectations regarding VOO synergies and the key building blocks for EBITDA growth in 2025? A: Antoine Chouc, CFO: We plan to reach the EUR85 million synergy run rate by year four post-closing, ahead of the initial seven-year estimate. The growth in EBITDA for 2025 will be driven by increased synergies and cost efficiencies beyond synergies, including digitization and operational improvements.

Q: Regarding the FTTP rollout, how are you addressing competition and potential cooperation with Proximus? A: Xavier Pichon, CEO: We are preserving our premium network in the former VOO areas and have started FTTP rollout in Brussels. We are in discussions with Proximus for potential cooperation to optimize customer access to gigabit networks.

Q: Can you explain the impact of convergent discounts on retail service revenue growth and the role of satellite coverage in your strategy? A: Antoine Chouc, CFO: The slight decrease in H2 growth was due to the absence of price hikes seen in H1. Convergent discounts have a minor impact, offset by lower churn. Satellite coverage is complementary and not a replacement for FTTP, providing internet access in less profitable areas.

Q: What gives you confidence in raising prices despite new competition from Digi, and how do you expect Digi to impact your 2025 financials? A: Xavier Pichon, CEO: Our segmented brand approach has driven strong commercial momentum, allowing for price increases. Antoine Chouc, CFO: We expect to maintain commercial momentum, with potential impacts from Digi offset by synergies, though revenue growth could be slightly higher without Digi's entry.

Q: How are you handling competition in areas where Proximus has deployed fiber, and what is the status of discussions with the regulator? A: Xavier Pichon, CEO: We are not seeing significant impact from Proximus's fiber deployment due to our strong HFC coverage. Discussions with Proximus and the regulator are ongoing, and we expect updates in the future.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.