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Solid EBITDAaL growth thanks to strong mobile growth

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Press release
Embargo until October 21, 2021 at 7:00 a.m.
Regulated information – Inside information

Financial information for the third quarter of 2021 and the first nine months of 2021

Solid EBITDAaL growth thanks to strong mobile sales momentum
and ongoing cost management

  • Postpaid mobile customer base + 3.9% year-on-year / Cable customer base + 25.5% year-on-year
  • Q3 revenue + 3.3% year-on-year / Q3 retail services revenue +4.8% year-on-year
  • EBITDAaL Q3 + 8.1% year-on-year (YTD ’21: + 8.5%)
Third Quarter Operational Highlights
  • Strong growth in mobile net additions. The postpaid mobile customer base grew from 37k to 2.7 million subscribers thanks to the attractiveness of the Go wallet, especially after the Go Plus data boost launched in June.
  • Love and Home offers continue to grow steadily. The cable customer base increased by 17k during the third quarter to reach 382k customers (+ 25.5% year-on-year).
  • B2C convergent ARPO decreased by 3.1% year-on-year to € 73.1, due to discounts granted on converging mobile tariff plans.
  • Postpaid mobile-only ARPO remains stable at € 20.5.
Orange Belgium: key operating figures
Q3 2020 Q3 2021 cash
Mobile postpaid customer base (in ‘000) 2,615 2,718 3.9%
Net additions (in ‘000) 21 37 75.8%
ARPO postpaid mobile only (€ per month) 20.5 20.5 -0.3%
Cable customers (in thousands) 305 382 25.5%
Net additions (in ‘000) 17 17 -1.1%
ARPO converge B2C (€ per month) 75.4 73.1 -3.1%
Third Quarter Financial Highlights
  • Turnover reached € 346.3 million, up 3.3% over one year, is mainly explained by an increase in revenues from retail services as well as wholesale revenues. As in previous quarters, revenues from retail services continued to grow (+ 4.8% year-on-year), mainly driven by revenues from converged services (+ 14.6% year-on-year). ). Revenue growth is also driven by a significant increase in customer and visitor roaming.
  • EBITDAaL increased 8.1% year-on-year to € 96.7m. The increase in retail services revenues supported by continued cost savings were the main drivers. The EBITDAaL margin reached 27.9%.
  • ECapex closed at € 40.2m, slightly below Q3 2020 due to the effect of seasonality. A catch-up is expected in the fourth quarter thanks to the implementation of the RAN sharing agreement.
Orange Belgium Group: key financial figures
reported reported reported reported
in € m Q3 2020 Q3 2021 cash 9M 2020 9M 2021 cash
Income 335.3 346.3 3.3% 971.9 1 002.1 3.1%
Retail services revenues 230.6 241.7 4.8% 676.4 702.5 3.9%
EBITDAaL 89.4 96.7 8.1% 237.6 257.9 8.5%
margin as% of sales 26.7% 27.9% 126 bp 24.4% 25.7% 129 bp
eCapex1 -41.9 -40.2 -4.1% -106.8 -121.5 13.8%
Operating cash flow2 47.5 56.5 18.9% 130.7 136.3 4.3%
Net financial debt 135.3 63.3 135.3 63.3
  1. eCapex excluding license fees. In the first and third quarters of 2021, Orange Belgium paid € 10.9 million in royalties each quarter.
  2. Operating cash flow defined as EBITDAaL – eCapex excluding license fees

Xavier Pichon, Chief Executive Officer, said:

Orange Belgium maintained a strong commercial performance in the third quarter, supported by recent improvements in the Go portfolio and the continued growth of our convergence offerings.

In addition, Orange Belgium continues to differentiate itself in the market while expanding the range of value propositions to meet the constantly evolving needs of customers.

We have successfully launched Orange TV Lite, allowing customers to stream OTT, without having to pay a full TV subscription or needing a set-top box and Hey! our new 100% digital brand, targeting ultra-connected customers leading a fully digital life.

Antoine Chouc, Chief Financial Officer, said:

Our positive business results also generated a corresponding financial performance. Our revenues increased 3.3% year over year, primarily driven by higher revenues from retail services as well as growth in wholesale revenues.

The combination of increased revenues from retail services and continued cost management resulted in exceptional EBITDA for this quarter. Regarding eCapex, we anticipate a catch-up in the last quarter of the year.

Given these results and the improvement in the health environment, we expect to slightly exceed our EBITDAaL guidance. The revenue and eCapex forecasts remain unchanged.


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