Belgacom posts rise in H1 net profit; ups FY guidance |
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Fri, 24 Aug 2007 06:56
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BRUSSELS (Thomson Financial) - Telecoms group Belgacom SA posted a rise in net profit for the first half and upped its full-year guidance for its fixed-line as well as mobile business. Net profit rose to 564.0 mln eur from 434.0 mln a year earlier, whilst EBITDA came in at 1.08 bln, slightly below last year's 1.11 bln.Sales for the first half totaled 3.04 bln against 3.03 bln a year earlier.The group upgraded its full year guidance for its fixed-line and mobile activities, saying it feels 'comfortable' with the 'good set of results' it has posted and with the challenges ahead.Taking into account the expected financial impact following the lowered fixed-to-mobile prices which came into force on May 1, Belgacom sees a full year revenue decline of about 1 pct for its fixed line activities.It expects a 'fairly flat' year-on-year full year EBITDA margin for fixed line.The group had previously guided for 1-2 pct drop in sales and a stable EBITDA margin.For its mobile services, the group says its mobile telecoms unit Proximus estimates overall business revenue to increase by around 1 pct, 'thanks to the success of its commercial strategy'.A cut in mobile termination rates (MTRs) will however negatively impact full year results for mobile services, with the group forecasting a total revenue decline of some 4 pct and a full year EBITDA margin of around 44 pct.In earlier guidance, the group had seen sales for mobile its business dropping by 5 to 7 pct, with the EBITDA margin declining to around 45 pct.antonia.vandevelde@thomson.comava/ava/jlwCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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