Solid Q1 EBITDAaL growth Updated dividend in the COVID-19 context

Press release
Embargo until 23 April 2020 at 7:00 am
Regulated information

Financial information for the first quarter of 2020

Solid Q1 EBITDAaL growth

 Updated dividend in the COVID-19 context

• Mobile postpaid customer base +3.9% yoy on quarterly net-adds of 9k 
• Convergence customer base +40.0% yoy on quarterly net-adds of 21k
• Q1 Revenues¹ +1.9% yoy / Retail service revenues¹: +4.6% yoy
• Q1 EBITDAaL¹ +7.6% yoy

COVID-19 impact

• Lockdown impacted commercial and operational dynamic. Temporary closure of shops has impacted the acquisition of new customers for mobile and convergence, as well as handset sales. However, churn has improved. Additionally, roaming and SMS traffic as well as ICT projects have decreased, whereas voice traffic has increased.
• Uncertainty remains in regards to the COVID-19 measures and the impact on the Belgian economy.
• Currently, Orange Belgium expects the COVID-19 context to have a negative moderate impact on 2020 revenues, and a more limited impact on 2020 EBITDAaL thanks to low EBITDAaL impact of handset, SMS and roaming revenues, as well as cost control. The 2020 eCapex should moderately decrease due to some limitations during the lockdown period. 
• Orange Belgium will consider an update of its 2020 financial guidance after the Q2 period, with more visibility on the COVID-19 context.
• Taking into account the current context and uncertainty, the Board of Directors recommends to the AGM not to increase the 2019 dividend to €0.60 per share as initially foreseen and to adopt an unchanged dividend of €0.50 per share.

Q1’20 Belgium operating highlights

• Strong convergence net-adds confirm attractiveness of the Love Duo/Trio offers. Orange Belgium added 21k subscribers (+8.1% yoy) and reached 280k Love customers (+40% yoy). Love Duo still represents one third of the gross adds. The convergent mobile subscriber base represents 17.4% of mobile postpaid customers, up 470 bp vs Q1’19. Due to the delay in installation time, the COVID-19 impact on Q1 March sales will materialise mainly in Q2.
• Mobile postpaid customer base grew despite competitive environment and COVID19 impact. The mobile postpaid customer base grew by 9k to 2.6m subscribers (+3.9% yoy). The launch of the new GO mobile portfolio in March, introducing the first family mobile offer in Belgium, has been impacted by COVID-19 lockdown measures.
• B2C convergent ARPO decreased slightly by 1.9% yoy to €75.9 as the result of the growing Love Duo customer base with a lower price point, which already represents 14% of Love customers.
• Mobile-only postpaid ARPO declined slightly by 2.5% yoy to €20.3, as a result of lower out-of-bundle revenues due to EU regulation for international calls, as well as COVID-19 effects on SMS and roaming, partly offset by migration to higher tariff plans.

Orange Belgium: key operating figures