Brussels, 20 July 2007
| Key figures | H1 2007 | H1 2006 | Variation |
| Total active customers(1) (mobile telephony) | 3,199,735 | 3,019,508 | +5.9% |
| Consolidated turnover (Mio € ) | 747.2 | 758.1 | -1.4% |
| Total service revenues (Mio € ) | 720.9 | 736.8 | -2.2% |
| ARPU(2) (€ /month) | 36.9 | 39.5 | -5.5% |
| EBITDA (Mio € ) | 302.0 | 308.9 | -2.2% |
| Consolidated net profit (Mio € ) | 150.7 | 147.8 | +2% |
| Net profit per ordinary share (€ ) | 2.38 | 2.34 | +1.7% |
| Net Investments (Mio € ) | 58.3 | 69.2 | - 16% |
(1) The 'machine-to-machine' cards, as well as the MVNO cards are not included in the number of active customers. The customer base including MVNO cards amounts to 3,240,516 customers.
(2) Monthly Average Revenue per User (rolling average of the previous 12 months).
Today, Mobistar (Euronext Brussels: MOBB) announces its results for the first half of 2007. In a market with increased competition and strong regulatory pressure, Mobistar maintains good commercial results. On 30 June 2007, the operator counts 3,199,735 active customers, an increase of 5.9 % compared to end of June 2006. The customer base including the MVNO cards amounts to 3,240,516, an increase of 88,061 customers compared to end of 2006. The share of postpaid customers continues to grow and on 30 June 2007 reaches 53.4 % of the total number of active customers, compared to 48 % the year before. The growth in number of postpaid customers cannot prevent the ARPU being influenced by a reduction of the mobile termination rates (MTR) and the lower wholesale roaming rates. On 30 June 2007, the ARPU amounts to 36.9 euro, a reduction with 5.5 % over one year. The consolidated turnover amounts to 747.2 million euro on 30 June 2007. As a result of its efforts in cost management and optimisation of its organisation, Mobistar can maintain its profitability. The consolidated EBITDA amounts to 302 million euro and is stable at 41.9 % of the service revenues. In addition, the net profit raised with 2 % to 150.7 million euro, or 2.38 euro per share.
Favourable results with commercially innovating products
In a market with increased competition and strong regulatory pressure, Mobistar reconfirms its commercial strength, thanks to innovative products such as Mobistar AtHome for the residential market and Mobistar One Office Voice Pack for the professional market. In the first semester of 2007, through these successful innovations, the operator managed to attract 88,061 new customers, including 27,550 via its MVNOs.
In a market with increased competition and strong regulatory pressure, Mobistar reconfirms its commercial strength, thanks to innovative products such as Mobistar AtHome for the residential market and Mobistar One Office Voice Pack for the professional market. In the first semester of 2007, through these successful innovations, the operator managed to attract 88,061 new customers, including 27,550 via its MVNOs.Mobistar AtHome makes calling to fix numbers in Belgium and abroad from home using a mobile phone cheaper than with a fixed phone. Customers no longer need a fixed line at all, and enjoy greater convenience.
One Office Voice Pack combines fixed and mobile telephony for the professional market, allowing the customer to enjoy a more advantageous rate per minute, free calls between employees of the same company and more efficient call transfers.
The success of Mobistar AtHome and Mobistar One Office Voice Pack confirms the operator's strategy. In the residential market, Mobistar substitutes fixed telephony with mobile telephony; in the professional market, the operator provides convergent solutions.
The MNP figures (Mobile Number Portability) for the first half of 2007 also confirm the success of Mobistar's attractive products. In the first six months, Mobistar is the only operator to achieve a positive balance with a net gain of 22,371 new customers.
Evolution of the customer base: increasing proportion of postpaid customersOn 30 June 2007, Mobistar counts 3,199,735 active customers, compared to 3,019,508 active customers one year earlier, or an increase of 5.9 %. The customer base, including MVNO cards, amounts to 3,240,516, or an increase with 221,008 customers compared to the end of June 2006. The increase in the number of customers confirms the success of Mobistar's commercial strategy. In the corporate segment, Mobistar managed to renew a number of big contracts, while in the SOHO and SME market, Mobistar was successful with its bundles. In the residential market, Mobistar already has 45,000 AtHome contracts by the end of June 2007, since its launch in March 2007.On 30 June 2007, Mobistar counts 3,199,735 active customers, compared to 3,019,508 active customers one year earlier, or an increase of 5.9 %. The customer base, including MVNO cards, amounts to 3,240,516, or an increase with 221,008 customers compared to the end of June 2006. The increase in the number of customers confirms the success of Mobistar's commercial strategy. In the corporate segment, Mobistar managed to renew a number of big contracts, while in the SOHO and SME market, Mobistar was successful with its bundles. In the residential market, Mobistar already has 45,000 AtHome contracts by the end of June 2007, since its launch in March 2007.Thanks to a strong growth in the number of subscribers, the postpaid/prepaid ratio in the customer base improved. The number of postpaid customers increased with 273,551, or 19 % more than in June 2006. On 30 June 2007, the postpaid/prepaid ratio reaches 53.4/46.6, compared to 48/52 the year before. The growth in postpaid customers has been as strong on the professional side as it has been on the residential side.
At the end of the first semester, Mobistar registers 24,683 ADSL customers. The majority of the customers opted for ADSL Connect, an internet service without a fix line subscription at the incumbent operator.
The Average Revenue per User (ARPU) under regulatory pressure
Due to an accelerated reduction of the mobile termination rates (MTR) with 16,5 % in November 2006 and with 20 % in May 2007, the lower roaming wholesale rates and the increased competition between the operators, the Average Revenue per User (ARPU) evolved from 39.05 euro at the end of June 2006 to 36.9 euro by the end of June 2007. The ARPU is supported by the further increase in the number of postpaid customers and an increased usage. In the first half of 2007, the average use per customer (minutes/SMS) increased with 17.5 % ( ), or 250.7 SMS and min/month compared to 213.4 in 2006.
The increased use, thanks to the sustained success of Tempo Music, does not prevent prepaid ARPU to decrease from 17.2 to 16.5 euro, exclusively as a result of lower mobile termination rates (MTR).
The postpaid ARPU is influenced by the profile of the new postpaid customers, of which an important part has migrated from prepaid, as well as by the strong price pressure in the business market, which can only be compensated partially by increased use. The postpaid ARPU has evolved from 59.6 euro on 30 June 2006, to 49.5 at the end of June 2007.
Service revenues
The regulatory pressure mentioned above has also influenced the service revenues. The negative net impact amounts to 30.3 million euro in the first half of 2007, or more than 4 % of the turnover. The decrease of the mobile termination rates is responsible for a negative net impact of 16 million euro on the revenues and the lower roaming wholesale rates on their side for a net impact of 14.3 million euro. However, this decrease was limited by a continuous increase in revenues generated by its customers. On 30 June 2007, the service revenues reach a total of 720.9 million euro, compared to 736.8 million euro at the end of June 2006 - a decrease by 2.2 %.The regulatory pressure mentioned above has also influenced the service revenues. The negative net impact amounts to 30.3 million euro in the first half of 2007, or more than 4 % of the turnover. The decrease of the mobile termination rates is responsible for a negative net impact of 16 million euro on the revenues and the lower roaming wholesale rates on their side for a net impact of 14.3 million euro. However, this decrease was limited by a continuous increase in revenues generated by its customers. On 30 June 2007, the service revenues reach a total of 720.9 million euro, compared to 736.8 million euro at the end of June 2006 - a decrease by 2.2 %.For mobile activities, the service revenues decreased with 2.3 %, from 694 million euro at the end of June 2006 to 678.2 million euro on 30 June 2007.The regulatory pressure mentioned above has also influenced the service revenues. The negative net impact amounts to 30.3 million euro in the first half of 2007, or more than 4 % of the turnover. The decrease of the mobile termination rates is responsible for a negative net impact of 16 million euro on the revenues and the lower roaming wholesale rates on their side for a net impact of 14.3 million euro. However, this decrease was limited by a continuous increase in revenues generated by its customers. On 30 June 2007, the service revenues reach a total of 720.9 million euro, compared to 736.8 million euro at the end of June 2006 - a decrease by 2.2 %.For mobile activities, the service revenues decreased with 2.3 %, from 694 million euro at the end of June 2006 to 678.2 million euro on 30 June 2007.The service revenues of the fix activity remain stable. At the end of June 2007, this amounts to 42.7 million euro, compared to 42.8 million euro on 30 June 2006.The regulatory pressure mentioned above has also influenced the service revenues. The negative net impact amounts to 30.3 million euro in the first half of 2007, or more than 4 % of the turnover. The decrease of the mobile termination rates is responsible for a negative net impact of 16 million euro on the revenues and the lower roaming wholesale rates on their side for a net impact of 14.3 million euro. However, this decrease was limited by a continuous increase in revenues generated by its customers. On 30 June 2007, the service revenues reach a total of 720.9 million euro, compared to 736.8 million euro at the end of June 2006 - a decrease by 2.2 %.The regulatory pressure mentioned above has also influenced the service revenues. The negative net impact amounts to 30.3 million euro in the first half of 2007, or more than 4 % of the turnover. The decrease of the mobile termination rates is responsible for a negative net impact of 16 million euro on the revenues and the lower roaming wholesale rates on their side for a net impact of 14.3 million euro. However, this decrease was limited by a continuous increase in revenues generated by its customers. On 30 June 2007, the service revenues reach a total of 720.9 million euro, compared to 736.8 million euro at the end of June 2006 - a decrease by 2.2 %.For mobile activities, the service revenues decreased with 2.3 %, from 694 million euro at the end of June 2006 to 678.2 million euro on 30 June 2007.The regulatory pressure mentioned above has also influenced the service revenues. The negative net impact amounts to 30.3 million euro in the first half of 2007, or more than 4 % of the turnover. The decrease of the mobile termination rates is responsible for a negative net impact of 16 million euro on the revenues and the lower roaming wholesale rates on their side for a net impact of 14.3 million euro. However, this decrease was limited by a continuous increase in revenues generated by its customers. On 30 June 2007, the service revenues reach a total of 720.9 million euro, compared to 736.8 million euro at the end of June 2006 - a decrease by 2.2 %.For mobile activities, the service revenues decreased with 2.3 %, from 694 million euro at the end of June 2006 to 678.2 million euro on 30 June 2007.The service revenues of the fix activity remain stable. At the end of June 2007, this amounts to 42.7 million euro, compared to 42.8 million euro on 30 June 2006.The consolidated turnover, including the sale of mobile phones, amounts to 747.2 million euro on 30 June 2007 compared to 758.1 million euro in the previous year, or a decrease by 1.4 %.
Maintain of profitability
Thanks to the growth of the customer base and the increased use of the services, as well as the effective cost management in all the company's activities, Mobistar managed to maintain its profitability.
This confirmation is the result of a successful outsourcing of some network activities, implemented in May 2007, as well as the continued and efficient cost management of the distribution through an expansion of the own points of sale.Thanks to the growth of the customer base and the increased use of the services, as well as the effective cost management in all the company's activities, Mobistar managed to maintain its profitability.This confirmation is the result of a successful outsourcing of some network activities, implemented in May 2007, as well as the continued and efficient cost management of the distribution through an expansion of the own points of sale.At the end of the first semester of 2007, the consolidated EBITDA amounted to 302.0 million euro, compared to 308.9 million euro realised end June 2006. Despite strong regulatory pressure, the EBITDA margin remains stable at 41.9 % of the service revenues.Thanks to the growth of the customer base and the increased use of the services, as well as the effective cost management in all the company's activities, Mobistar managed to maintain its profitability.This confirmation is the result of a successful outsourcing of some network activities, implemented in May 2007, as well as the continued and efficient cost management of the distribution through an expansion of the own points of sale.At the end of the first semester of 2007, the consolidated EBITDA amounted to 302.0 million euro, compared to 308.9 million euro realised end June 2006. Despite strong regulatory pressure, the EBITDA margin remains stable at 41.9 % of the service revenues.For the mobile activity, the EBITDA amounted to 302.8 million euro in the first six months of the year, compared to 308 million euro in the previous year or a slight increase in the margin from 44.4 % to 44.7 %.Thanks to the growth of the customer base and the increased use of the services, as well as the effective cost management in all the company's activities, Mobistar managed to maintain its profitability.This confirmation is the result of a successful outsourcing of some network activities, implemented in May 2007, as well as the continued and efficient cost management of the distribution through an expansion of the own points of sale.Thanks to the growth of the customer base and the increased use of the services, as well as the effective cost management in all the company's activities, Mobistar managed to maintain its profitability.This confirmation is the result of a successful outsourcing of some network activities, implemented in May 2007, as well as the continued and efficient cost management of the distribution through an expansion of the own points of sale.At the end of the first semester of 2007, the consolidated EBITDA amounted to 302.0 million euro, compared to 308.9 million euro realised end June 2006. Despite strong regulatory pressure, the EBITDA margin remains stable at 41.9 % of the service revenues.Thanks to the growth of the customer base and the increased use of the services, as well as the effective cost management in all the company's activities, Mobistar managed to maintain its profitability.This confirmation is the result of a successful outsourcing of some network activities, implemented in May 2007, as well as the continued and efficient cost management of the distribution through an expansion of the own points of sale.At the end of the first semester of 2007, the consolidated EBITDA amounted to 302.0 million euro, compared to 308.9 million euro realised end June 2006. Despite strong regulatory pressure, the EBITDA margin remains stable at 41.9 % of the service revenues.For the mobile activity, the EBITDA amounted to 302.8 million euro in the first six months of the year, compared to 308 million euro in the previous year or a slight increase in the margin from 44.4 % to 44.7 %.The EBITDA of the fix activities in the first six months of 2007 amounted to -0.7 million euro, and comparable with the 1 million euro in the first semester of 2006. However, it was substantially higher than the -7.3 million euro of the second semester of 2006. These results were achieved through a number of cost saving initiatives, such as a focus on sales through the own distribution channel and an optimisation of the product portfolio.
The net profit increases with 2 %, mainly due to lower depreciations, to 150.7 million euro by 30 June 2007, compared with 147.8 million euro in the previous year. This represents a net profit per ordinary share of 2.38 euro on 30 June 2007, against 2.34 euro in June 2006.
Investments
In the first half of 2007, the investments amounted to 58.3 million euro, or 8.1 % of the service revenues. Special attention was given to the further expansion of the 3G/HSDPA network and to the optimisation of the deep-indoor coverage of the 2G network. Mobistar also completely renewed its MSC infrastructure (Mobile Switching Center), which has already been partially taken into use.In the first half of 2007, the investments amounted to 58.3 million euro, or 8.1 % of the service revenues. Special attention was given to the further expansion of the 3G/HSDPA network and to the optimisation of the deep-indoor coverage of the 2G network. Mobistar also completely renewed its MSC infrastructure (Mobile Switching Center), which has already been partially taken into use.The expansion of the own distribution channel continues. At the end of June 2007, Mobistar had 20 own Mobistar Centers, as well as 124 Mobistar Centers managed by agents. The operator thus increases the efficiency of its distribution and lowers its acquisition costs.In the first half of 2007, the investments amounted to 58.3 million euro, or 8.1 % of the service revenues. Special attention was given to the further expansion of the 3G/HSDPA network and to the optimisation of the deep-indoor coverage of the 2G network. Mobistar also completely renewed its MSC infrastructure (Mobile Switching Center), which has already been partially taken into use.The expansion of the own distribution channel continues. At the end of June 2007, Mobistar had 20 own Mobistar Centers, as well as 124 Mobistar Centers managed by agents. The operator thus increases the efficiency of its distribution and lowers its acquisition costs.In the first half of 2007, the investments amounted to 58.3 million euro, or 8.1 % of the service revenues. Special attention was given to the further expansion of the 3G/HSDPA network and to the optimisation of the deep-indoor coverage of the 2G network. Mobistar also completely renewed its MSC infrastructure (Mobile Switching Center), which has already been partially taken into use.In the first half of 2007, the investments amounted to 58.3 million euro, or 8.1 % of the service revenues. Special attention was given to the further expansion of the 3G/HSDPA network and to the optimisation of the deep-indoor coverage of the 2G network. Mobistar also completely renewed its MSC infrastructure (Mobile Switching Center), which has already been partially taken into use.The expansion of the own distribution channel continues. At the end of June 2007, Mobistar had 20 own Mobistar Centers, as well as 124 Mobistar Centers managed by agents. The operator thus increases the efficiency of its distribution and lowers its acquisition costs.In the first half of 2007, the investments amounted to 58.3 million euro, or 8.1 % of the service revenues. Special attention was given to the further expansion of the 3G/HSDPA network and to the optimisation of the deep-indoor coverage of the 2G network. Mobistar also completely renewed its MSC infrastructure (Mobile Switching Center), which has already been partially taken into use.The expansion of the own distribution channel continues. At the end of June 2007, Mobistar had 20 own Mobistar Centers, as well as 124 Mobistar Centers managed by agents. The operator thus increases the efficiency of its distribution and lowers its acquisition costs.
Trends
Mobistar will continue to position itself as a commercial innovator, and to adapt its products and services further to meet evolving customer needs even better. In addition, the operator will continue to manage its costs.Mobistar will continue to position itself as a commercial innovator, and to adapt its products and services further to meet evolving customer needs even better. In addition, the operator will continue to manage its costs. In May 2007, Mobistar signed an agreement for the take-over of 90 % of the capital of VOXmobile valued at 80.3 million euro. The take-over has been completed with a 'closing' on 2 July 2007, as planned. The consolidation of the results of the Luxemburg operator will start as from the second semester of 2007.
Mobistar will continue to position itself as a commercial innovator, and to adapt its products and services further to meet evolving customer needs even better. In addition, the operator will continue to manage its costs.Mobistar will continue to position itself as a commercial innovator, and to adapt its products and services further to meet evolving customer needs even better. In addition, the operator will continue to manage its costs. In May 2007, Mobistar signed an agreement for the take-over of 90 % of the capital of VOXmobile valued at 80.3 million euro. The take-over has been completed with a 'closing' on 2 July 2007, as planned. The consolidation of the results of the Luxemburg operator will start as from the second semester of 2007.Mobistar will continue to position itself as a commercial innovator, and to adapt its products and services further to meet evolving customer needs even better. In addition, the operator will continue to manage its costs.In May 2007, Mobistar signed an agreement for the take-over of 90 % of the capital of VOXmobile valued at 80.3 million euro. The take-over has been completed with a 'closing' on 2 July 2007, as planned. The consolidation of the results of the Luxemburg operator will start as from the second semester of 2007.The implementation of the planned synergies for both parties, facilitating additional growth for Mobistar, started successfully with a.o. crossborder offers to corporate BeLux companies.
Mobistar's commercial growth will continue in 2007, both in the residential and the professional market. Mobistar will strengthen its value share mainly because of its strong performance in the postpaid segment. Still, the lower Mobile Termination Rates (MTR) imposed by the regulator in November 2006 and May 2007 and the regulation of roaming rates by the European Union, will have a negative impact on the evolution of both turnover and net profit.
Within this context, Mobistar confirms both for turnover and net profit a slight decrease of 2 to 4 % for the financial year 2007 (the consolidation of VOXmobile included as of 2 July 2007).