Wednesday, February 07, 2018

Orange BE 17Q4 highlights: Luxembourg impairment, underlying high growth

  • Impairment Orange LU 17.9m
  • MSR -3.3% (+2.9% excl MVNO impact, +6.7% excl MVNO & RLAH impact)
  • Adj EBITDA -21% (-1.8% excl Wallon pylon deal; +11% excl Wallon deal & RLAH impact)
  • Opex related to BB+TV 13.4m (~x2)
  • Rev MVNO-loss impact (Telenet) 2017 on rev -9.1m (17Q4 -15.3m), RLAH impact -36.4m (o/w -8.4m in 17Q4)
  • EBITDA impact MVNO-loss -7.5m, impact RLAH -7.3m
  • Cable business 2017 EBITDA impact -18.5m
  • NB-IoT & LTE-M nationwide
  • Launches unlimited mobile data/voice/SMS plan 180212 (a first in BE)
  • Targets 2018
    • adj EBITDA 280-300m (incl MVNO loss impact -30m on rev [also lost Lycamobile, will lose VOOmobile]
    • RLAH impact on rev -26m & on EBITDA -17m
    • capex (excl cable) flat
    • focus on oper efficiency
    • mid-term BB market share target 10%
    • div 2017 50c
    • started using network data (dropped calls) to identify & target eligible residential customers for a femtocell
    • Big Data for targeted network investments, churn mgt, rev assurance/fraud detection
    • plans one-stop shop (fixed & mobile) for businesses, coop with Orange Business Services

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