Proximus eyes lower 2021 core profit as fibre spending speeds up

Belgium’s Proximus said on Friday it expected lower core profit for 2021 as it anticipated additional spending on fibre migrations and IT transformation, and less savings from COVID-19 measures.

Proximus is the first Belgian operator to have launched a public 5G network while playing a major role in high-speed internet coverage, planning to supply with fibre at least 70% of the country by 2028.

Proximus, majority-owned by the Belgian state, expects capital expenditure to rise in 2021 to close to 1.2 billion euros ($1.46 billion) from 1 billion euros last year.

“With our deployment speed doubling in 2021 compared to 2020… we are on track to deliver our ambitious Fiber plan,” Chief Executive Officer Guillaume Boutin said in a statement, adding that 460,000 homes and businesses were migrated to fibre by end-2020.

The company forecast underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) in a range of 1.75 billion to 1.78 billion euros, below a company-provided consensus of between 1.80 billion and 1.89 billion euros.

In 2020, underlying EBITDA fell to 1.84 billion euros, on revenue dropping to 5.48 billion euros.

The company forecast underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) in a range of 1.75 billion to 1.78 billion euros, below a company-provided consensus of between 1.80 billion and 1.89 billion euros.

In 2020, underlying EBITDA fell to 1.84 billion euros, on revenue dropping to 5.48 billion euros. Reuters