Belgacom posts strong rise in H1 net, raises FY guidance UDPATE

Belgacom posts strong rise in H1 net, raises FY guidance UDPATE

	Published : Fri, 24 Aug 2007 08:03 By : Agencies Print this Story

(Updates with second quarter figures, comparison with expectations)

BRUSSELS (Thomson Financial) - Belgacom SA posted first half net profit at the top end of expectations and upped its full-year guidance for both its fixed-line and mobile businesses.

Net profit at the Belgian telecoms group rose 30 pct to 564.0 mln eur from 434.0 mln a year earlier. Sales were up 0.2 pct at 3.04 bln eur.

For the second quarter, the group posted net profit at 245 mln eur, compared to 219 mln a year earlier and at the top end of analysts' expectations of 219-245 mln eur.

EBITDA amounted to 543 mln eur, down from 565 mln but beating forecasts of 518-535 mln eur.

Second quarter sales totaled 1.53 bln, up from 1.52 bln and beating expectations of 1.48-1.51 bln.

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

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

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.

antonia.vandevelde@thomson.com

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