Belgacom posts rise in H1 net profit; raises FY guidance UDPATE

Belgacom posts rise in H1 net profit; raises FY guidance UDPATE

	Published : Fri, 24 Aug 2007 07:29 By : Agencies Print this Story

(Updates with further detail)

BRUSSELS (Thomson Financial) - Telecoms group Belgacom SA posted a 30 pct 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, a 2.8 pct decrease from last year's 1.11 bln.

Sales for the first half were up 0.2 pct to 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 a 1-2 pct drop in sales and a stable EBITDA margin.

The group said it added 51,683 new TV subscribers in the first half of 2007, reaching a total of 191,348 customers by the end of June 2007.

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 its mobile business dropping by 5-7 pct, with the EBITDA margin declining to around 45 pct.

The group said Proximus customer acquisition strategy 'proved to be successful, leading to a strong and qualitative customer gain in the first half of 2007', but added that the cut in MTRs offset the positive impact of customer growth.

Revenue from its International Carrier Services (ICS) business increased by 33.3 pct compared to the first half of 2006.

The group did not provide an update on a share buyback or an interim dividend despite analysts' expectations that it would do so.

antonia.vandevelde@thomson.com

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