04/02/15 07:00

Financial news

Mobistar increased postpaid customer base and revenue per user in Q4 thanks to 4G leadership

Back to news index

Brussels, 4 February 2015 – Today, Mobistar (Euronext Brussels: MOBB) publishes its results for the financial year 2014.

- In the fourth quarter of 2014, Mobistar’s retail customer base in Belgium increased by circa 24K thanks to its sustained 4G coverage leadership, its successful ‘M4GIC’ marketing campaign, its completely overhauled distribution and continued growth in M2M business. Blended ARPU in Belgium ticked up to 24.3 euros in the fourth quarter, versus 23.9 euros in the previous quarter, increasing year-on-year for the first time in more than three years, driven by Mobistar’s focus on value management, improved customer loyalty and data usage development.

- Mobistar delivered on its in-depth business transformation program quarter after quarter:

  • Mobistar achieved undisputed leadership in 4G coverage and holds #1 position in voice quality and 3G coverage
  • Mobistar reached half a million 4G customers with 4G traffic now representing over one third of total mobile data traffic;
  • Mobistar’s retail customer base increased by 49K in 2014 in Belgium despite fierce competition;
  • The postpaid net adds which turned positive in the third quarter of 2014, continued their positive trajectory in the last quarter of the year;
  • The ACE2 efficiency program exceeded its 50 million euros net savings target.

- Mobistar’s FY 2014 results are at the high end of its guidance with a restated EBITDA of 275 million euros.

- Mobistar engaged with friendly users testing of its very high broadband internet & digital TV cable services, preparing for commercial launch in the course of 2015.

- Throughout 2014, Mobistar has taken determined measures to regain commercial momentum and reversed the trends in its key financials. In 2015 Mobistar aims at stabilizing its financials in spite of still very challenging market conditions and consequently reiterates the same guidance range as last year; i.e. a restated EBITDA of between 260 and 280 million euros excluding any expenses related to the cable opportunity.

- Mobistar will continue prioritizing its investment in network and future growth in 2015, hence the Board of Directors will propose the General Assembly of May 6, 2015 to refrain from paying a dividend for the financial year 2014.

‘I am very pleased of what Mobistar achieved in 2014: network, distribution and overall customer experience are at the helm of our efforts and Mobistar already achieved remarkable performance. We deliver on our objectives and are winning back customers. In 2015, Mobistar customers will be more than ever at the centre of our actions with new services supporting the 4G experience and other improvements in terms of customer satisfaction. In complement to our best-in-class 4G services, we will be ready to market our disruptive internet & digital TV cable offers, once the regulators will have clarified the remaining points of the ‘retail minus’ calculation, as they committed at the end of last year. Mobistar will truly be turning into a converged provider with attractive offers for all of its customers. Thanks to the engagement of all Mobistar team members, we are entering the current year with optimism and therefore I am very excited about our long-term prospects’, commented Jean-Marc Harion (CEO).

Ludovic Pech (CFO) added: ‘Mobistar’s financial and commercial performance in 2014 shows that we are on the right track and we deliver on our promises. I am particularly pleased with the sound execution of our efficiency program. In addition to last year’s savings, we have structurally reduced expenses by more than 50 million euros in 2014, thoroughly adapted our business model to challenging market conditions and, importantly, reallocated resources towards high-priority domains and future growth activities. As a consequence, we are confident Mobistar is now well prepared to face the forthcoming challenges of the industry and to exploit opportunities’.

Complete Press Release