Today, Mobistar (Euronext Brussels: MOBB) publishes its results for the financial year 2012. The Mobistar group achieved a stable consolidated turnover of 1,650.5 million euros. In 2012, sales of mobile telephones rose by 32.1 % compared to 2011, and the share of mobile data in the service revenues amounted to 41.4 % at the end of 2012, compared to 37.1 % the previous year. The consolidated EBITDA amounted to 494.1 million euros and the net result 185.7 million euros. The results of the Mobistar group are in line with the targets set, which took account of the impact of the regulations and the introduction of the new telecom law on 1st October 2012. Mobistar is today presenting its new “SuperMobile 2013-2015” investment programme. This programme provides for an additional investment of 150 million euros in order to accelerate the roll-out of the 4G network. Taking into account this investment programme, the Board of Directors of Mobistar will propose the distribution of a dividend of 1.80 euro per share and submit this for approval to the General Meeting of Shareholders to be held on 2 May 2013.
1. Key facts
In 2012, the Mobistar group´s efforts were focused on four major strategic programmes:
Strengthening its leadership in the mobile activities market:
Thanks to the success of the ‘Animals’ tariff plans and the MVNOs
- Towards the end of the year, Mobistar was able to quickly adapt to the entry into effect of the new telecom law on 1st October thanks to the success of its ´Animals’ tariff plans, which give each customer control over his own consumption, enabling him to choose the subscription that truly corresponds to his needs. Mobistar concluded the year 2012 with 8,340 more active customers with a subscription than at the end of December 2011. At the end of 2012, 43 % of all residential postpaid customers had an ‘Animal’ tariff plan. The customers who opted for an ‘Animal’ tariff plan with a 12-month contract were rewarded by Mobistar with a lifelong discount of 20 % on the amount of their monthly subscription. During the course of the fourth quarter of 2012, Mobistar changed the price and the content of certain ‘Animal’ tariff plans in order to better adapt them to the new market situation. While the beginning of the fourth quarter was characterised by a clear increase in the number of departing postpaid customers, the launch of competitive tariff plans was able to turn this trend around as of the month of November 2012. The increase of Mobistar’s customer base is due to the success of its MVNOs. At the end of December 2012, Mobistar had 4,321,600 active mobile telephony customers, 5.3 % more than the previous year.
- The sale of mobile telephones in 2012 rose by 32.1 % compared to 2011. The increase was greatest in the last quarter of 2012, primarily thanks to the success of the iPhone 5 and the combined offer with the Samsung Galaxy S3. In this quarter Mobistar sold 81.1 million euros of mobile telephones compared to 38.6 million euros in the third quarter of 2012, or 110 % more. During the end-of-year period, Mobistar rewarded its loyal customers with a limited-edition subsidised mobile telephone.
Developing services that are available everywhere and at all times:
Thanks to the significant increase of the mobile data usage and the promising results of the 4G
- In 2012 the share of mobile data rose significantly, driven by the increasing use of smartphones and tariff plans that include mobile data. At the end of December 2012, the share of mobile data in the service revenues amounted to 41.4 %, compared to 37.1 % a year earlier. The growth was greatest during the last 3 months of 2012, with an increase of 70 % in the use of mobile internet compared to the previous quarter.
- The tests of the 4G network in Antwerp began in September 2012, while Orange Communications Luxembourg S.A. launched a commercial offer for 4G at the end of October 2012. Taking into account the first inputs received from the residential and business customers, Mobistar decided to revise upward its 4G deployment ambitions by 2015.
- In the fourth quarter Mobistar launched the ´combine & save´ offer for its mobile customers. By combining mobile products with ADSL, digital TV and/or fixed telephone services, mobile customers receive a discount on each additional product. The gross number of mobile customers who concluded an ADSL contract with the ´combine & save´ offer increased by 30 % in the fourth quarter of 2012.
Offering the best customer experience on the market:
Thanks to the ‘Happy Customer’ programme and the website relooking
- Mobistar continued to invest in the services provided to its customers in order to increase customer satisfaction. Various initiatives of the ´Happy Customer´ programme were implemented in 2012. In November 2012, Mobistar launched the personal tariff check. Every six months Mobistar will contact its customers and make a recommendation to adapt its tariff plan in accordance with their evolving needs. Henceforth customers can receive their invoice by e-mail and, if they have questions, they can directly contact a dedicated internal service. The automatic options menu was simplified so as to be able to help customers more efficiently via the call center. Thanks to the feedback that we received from our customers in the customer test center, Mobistar could tailor its products and services even more closely to customer needs before being put on the market.
- In 2012 Mobistar intensified the use of social media into its customer support, which produced a turnaround in customer satisfaction. In December 2012 Mobistar launched a new residential website. Thanks to the better ergonomics and the new design, customers find more easily targeted information on the products and services, and they have easier access to their own customer zone. For Mobistar, the sharp improvements in the criterion for customer satisfaction form part of the basis for future growth.
Managing the costs of the company as efficiently as possible:
Thanks to the ACE transformation programme
- The preparation phase of the transformation programme ACE (Agility - Cost - Efficiency) started in the second half 2012 and already generated major cost savings in 2012. The programme includes projects such as the replacement of ‘leased lines’ by ‘microwaves’, e-invoicing and online sales.
The ACE transformation programme is now beginning its operational phase and officially kicks off on 1 January 2013. It is intended to reduce Mobistar’s cost structure by 30 million euros per year as of 2014 by systematically improving all of the company’s processes. In total Mobistar will achieve 100 million euros in additional savings between 2013 and 2015.
Full press release (PDF)