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Orange Belgium Profit Up Despite Revenue Dip

Investing.com •
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Orange Belgium reported a 4% increase in full-year profit, reaching €41.30 million, despite a 1.5% revenue decline to €1.96 billion. This was driven by cost reductions and synergies from the VOO acquisition, offsetting the loss of football broadcasting rights. EBITDAaL rose to €566.10 million. The company's focus on integration and efficiency boosted its financial results.

The revenue decrease stemmed from a 1.5% drop in retail service revenue and the non-renewal of football rights. However, the EBITDA margin expanded to 28.8%, reflecting the ongoing benefits of the VOO acquisition in June 2023. Orange Belgium added 38,000 mobile postpaid customers. Capital expenditure increased due to network upgrades.

Looking ahead, Orange Belgium anticipates approximately 3.5% EBITDAaL growth in 2026, supported by continued synergies and efficiencies. The company is also targeting a decline in capital expenditure. In July, an agreement with Proximus was signed for fiber deployment, expanding access to approximately 800,000 homes.

This performance indicates successful integration efforts and strategic cost management. The focus on convergent services and network expansion positions Orange Belgium for future growth. The board decided not to propose a dividend for 2025 to preserve cash for capital requirements, reflecting an emphasis on investment.