Orange Belgium : Financial information for the ...

Press release

Embargo until April 20, 2018 at 7:00 am

Regulated information

Financial information for the first quarter of 2018

Solid commercial start of the year with a strong retail service revenue growth.

Q1 2018: Revenues +0.9 % , retail service revenues +6.2 % , adj. EBITDA -11.5 % yoy at group level due to expected MVNO impact,

+14k mobile contract net adds, +0.2 % yoy mobile only contract ARPO^[1] growth, +19k convergent net adds in Belgium

2018 guidance reiterated

• Orange Belgium had a solid start of the year with stronger commercial KPIs compared to last year
• 19 thousand new LOVE cable customers joined Orange Belgium's convergent customer base in the course of the first quarter of 2018 (vs. +16 thousand in Q1 2017), bringing the total convergent customer base at 122 thousand. This performance was achieved thanks to solid gross adds and improving churn. The convergent mobile customer base increased by 30 thousand to 186 thousand in the first quarter of 2018, or 8 % of the mobile contract customer base.
• Orange Belgium's mobile momentum was further boosted by the successful launch of the Eagle Unlimited, the first unlimited offer in Belgium. In the first quarter of 2018, Orange Belgium added 14 thousand mobile contract customers (vs. +3 thousand in Q1 2017), reaching a total of 2,329 thousand. Our value accretive and 'more-for-more' propositions, in combination with the increase in mobile data usage resulted in an increase of the mobile only contract ARPO by 0.2 % year-on-year to 21.1 euros, despite the impact of the Roam-Like-at-Home regulation.
   
• Strong underlying adjusted EBITDA, counterbalanced by expected MVNO revenue decline and EU-roaming impact
• First quarter revenues increased by 0.9 % year-on-year to 306.6 million euros, despite the expected 10.5 million euros lower MVNO revenues and the 7.9 million euros gross revenue impact related to the EU-roaming regulation. Retail service revenues were up 6.2 % year-on-year, reaching 181.3 million euros in the first quarter of 2018.
• Orange Belgium Group's first quarter adjusted EBITDA amounted to 60.6 million euros, compared to 68.5 million euros in the first quarter of 2017. This was the result of the solid increase in retail service revenues and sound cost management, more than mitigated by the expected decline in MVNO revenues and the impact of EU-roaming regulation.
• Orange Belgium Group invested 31.8 million euros in the first quarter of 2018, stable compared to the same period last year. Cable capex was also stable year-on-year, even with more cable customer net additions in the first quarter of 2018 versus last year, and thanks to an improved refurbishment process of the customer premises equipment.
• The organic cash flow amounted to 19.9 million euros in the first quarter of 2018. The net financial debt decreased 28.2 million euros year-on-year to reach 295.5 million euros at the end of the first quarter of 2018, implying a sound net financial debt / Reported EBITDA ratio of 1.0x.

Orange Belgium Group's consolidated key figures	Q1 2018	Q1 2017	Variation
mobile contract customer base excl. M2M (Belgium)	2,329	2,250	+3.5 %
ARPO mobile only contract (Belgium)	21.1	21.0	+0.2 %
convergent customer base (in '000, Belgium)	122	50	+144.2 %
convergent mobile customer base (Belgium)	186	74	+152.3 %
convergent mobile customer as % of mobile contract customer base (Belgium)	8.0 %	3.3 %
Revenues (mio €)	306.6	303.8	+0.9 %
Retail service revenues (mio €)	181.3	170.6	+6.2 %
Adjusted EBITDA (mio €)	60.6	68.5	-11.5 %
Adjusted EBITDA margin in % of revenues	19.8 %	22.5 %
Net investment (mio €)	31.8	32.2	-1.3 %
Net financial debt (mio €)	295.5	323.7	-8.7 %

• The Orange Belgium Group reiterates its guidance for the financial year 2018
• Based on the results of the first quarter of 2018, the Orange Belgium Group reiterates its 2018 financial guidance as provided in February 2018 under the IAS 18 standard. Under the newly implemented IFRS 15 accounting standard and considering the decreasing trend in subsidies over the past year, this guidance translates into a slight revenues growth and an IFRS 15 adjusted EBITDA between 275 and 295 million euros in 2018. In addition, the Orange Belgium Group expects its 2018 core investment (i.e. total investments excluding all cable related investments) to remain stable compared to 2017.

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^[1] The accounting standard IFRS15 "Revenue from Contracts with Customers" is applicable since 1 January 2018. The Orange Belgium Group is now publishing for the first time its financial results under this new standard. Moreover, a new presentation of the revenues and key performance indicators (KPI) was introduced and accordingly, the Orange Belgium Group provided on 10 April 2018 the restated 2016 and 2017 financial and operational figures under the IFRS 15 standard and with the new revenue presentation. Moreover; on page 14 a glossary can be found detailing the new definitions.

Q1 2018 financial information NL
Q1 2018 financial information EN
Q1 2018 financial information FR

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Source: Orange Belgium via Globenewswire