Proximus Sa · EURONEXT:PROX
Proximus Sa — Q2 2025 Earnings Presentation
40 slides from Proximus Sa's earnings presentation, Jul 25, 2025
Slide 1: Q2 2025 Results presentation
Q2 2025 Results presentation 25 July, 2025 Jan Van Acoleyen Mark Reid CEO Group a.i. Group CFO
Slide 2: Cautionary statement
Cautionary statement This presentation is a subset of the company’s results release. Please consult proximus.com/investors for the overall disclosed information. This communication may include some forward-looking statements, without limitation, regarding Proximus’ financial or operational results,
Slide 3: Agenda
Agenda › Highlights › Results overview Q2 2025 › Q&A
Slide 4: Q2 highlights: strong Domestic performance, Global headwinds
Continued strong Domestic performance, whereas highlighted headwinds in Global increased and integration challenges impacted Go-to-Market. Q2 highlights • Domestic delivering strong financial results, with Q2’25 Services revenue up +1.1% and EBITDA +1.9%, supported by sustained commercial performanc
Slide 5: FY'25 EBITDA guidance adjusted
FY’25 EBITDA guidance adjusted reflecting better-than expected results for Domestic, more than offset by the further expected headwinds for Global Outlook Outlook YTD 2025 FY 2025 FY 2025 Guidance metrics FY 2024 Actuals As presented Updated on 28 Feb 2025 25 July 2025 Underlying Domestic revenue €4
Slide 6: Group delivers +1.2% EBITDA growth for Q2'25
Group delivers a +1.2% EBITDA growth for Q2’25 on sustained strong performance of Domestic, more than offsetting the decrease for Global Domestic Global Group -8.0% EBITDA +1.2% Revenue Direct margin at CC Driven by domestic (M€; %YoY) -0.7% (M€, %YoY on pro forma basis) segment -10.8% (M€; YoY on p
Slide 7: Robust operational quarter with strong Mobile commercial results
Concluding a robust operational quarter, with particularly strong commercial results for Mobile Quarterly Net adds – Total Domestic (total Residential, Business, Tango, in ‘000) Fixed Voice base 1,418K; -156k YoY, -9.9% YoY Internet base Postpaid base Convergence base 2,323K; 5,127K; 1,194K; -34 -35
Slide 8: Proximus Residential multi-brand strategy and value approach
Proximus Residential continues to perform very well in a highly competitive market thanks to the multi-brand strategy and value approach Addressing different segments Driving commercial momentum by Reinforcing standalone mobile with 3-layer multi-brand strategy leveraging Fiber-centric strategy offe
Slide 9: Ookla Speedtest Award and 80% 5G coverage
Proximus has again received the Ookla Speedtest Award for Fastest Internet, and reached a milestone of 80% on 5G coverage #1 Proximus crossed the 80% milestone on 5G coverage Proximus Fiber is the Fastest internet in Belgium for the first half of >80% 2025 Indoor Speed score 76,10 Link to news Proxi
Slide 10: Fiber network covers >40% of population
Fiber network now covers >40% of population, or >45% Fiber in the Street, with nearly 650K active Fiber customers 646K FIBER customers 174 2,416k +107k Total park & net adds (in K) Cities and municipalities Fiber Homes & Fiber Homes & with Fiber works Businesses Passed end-Q2 Businesses Passed in Q2
Slide 11: MoU between Proximus and Orange BE on Fiber collaboration
MoU signed between Proximus and Orange BE on Fiber collaboration and Gigabit network access. Fiber negotiations in Flanders advanced well. Outside collaboration scope Collaboration scope for fiber deployment and network usage Dense ~30% Mid- Dense ~50% Rural ~20% Fiber already Fiber or other Fiber m
Slide 12: MoU to collaborate across ~0.8M fiber HP
Proximus has signed an MoU to collaborate with Orange Belgium across ~0.8M fiber HP and Orange Belgium's HFC network Outside collab. scope Collaboration footprint Fiber coverage 450k HP1 ~600k ~200k ~600k Dense Mid-dense Rural Rural Network owner 40% of fiber Joint Venture 3 HFC collaboration area ~
Slide 13: Fiber Collaboration MoU: extend fiber coverage across Wallonia
The Fiber Collaboration MoU provides a path to optimize network utilization, accelerate and extend fiber coverage across Wallonia1 Microsoft Teams Enhanced deployment CapEx efficiency – due to optimization of Gigabit footprint Broader Fiber deployment, targeting ~70% fiber coverage in Wallonia Conti
Slide 14: Proximus and Thales awarded NATO contract
Proximus and Thales awarded major contract by NATO to modernize its IT infrastructure Managed services contract with NATO NCIA, in collaboration with partner Thales Project runs until 2029 >5.000 laptops with multi-domain security, enabling staff to access different security classifications from one
Slide 15: Proximus Global facing industry challenges
Proximus Global facing industry challenges while commercial synergies come with delay Good progress in Exposure to SMS CPaaS market realizing cost synergies and integration challenges Majority of cost synergies realized Large exposure to market trends on SMS CPaaS: through: • Transition of SMS to al
Slide 16: Results Q2 2025
Results Q2 2025
Slide 17: Domestic Services revenue grew +1.1% YoY
Revenue from Domestic Services grew +1.1% YoY, and -0.7% in total due to lower revenue from Terminals and IT hardware. Revenue (underlying, M€) -0.7% 12 2 1,200 -4 1,192 -18 +1.1% Services revenue Q2’24 Residential Business Wholesale Non-Services Q2’25 Customer Services Services Revenue* Services *A
Slide 18: Residential revenue up +1.2% YoY
Residential revenue for Q2 up by +1.2% YoY, driven by sustained strong revenue growth from Services, up by +2.5% Residential revenue (M€, YoY ) 5.0% 3.0% 2.8% Fading double impact of 0.5% 1.2% price indexations 643 614 618 621 622 58 53 56 55 56 89 63 63 71 70 Customer Services revenue +2.5% YoY sup
Slide 19: Residential services revenue mix driven by Convergent customers
The Residential services revenue mix maintains a strong profile, driven by a growing portion of revenue from Convergent customers Customer base (in K) Customer services revenue up by +2.5% YoY +0.5% • Convergent revenue grew +5.4% 2,835 2,850 • 65% of the services revenue is generated by convergent
Slide 20: B2B Services revenue broadly steady, Product revenue down
B2B sequentially keeps a broadly steady Services revenue trend, while Product revenue was down following the exceptionally high revenue in Q1 Business revenue (M€, YoY) Services revenue -1.1%, 5.1% Increase in IT Services, offset by decline in Mobile Services and Fixed Voice 2.3% 1.5% -1.0% Products
Slide 21: B2B services revenue -1.1% YoY
B2B services revenue was -1.1% YoY , with growth in IT Services offset by Fixed Voice and a moderating headwind on Mobile. Business Services revenue (M€) +1.7% IT Services -1.1% • Driven by growth in Workplace and Smart Mobility services 412 408 +1.7% +0.1% Fixed Data • Internet revenue growth, offs
Slide 22: Wholesale revenue: Fixed & Mobile growth offsets interconnect decline
Growth in Fixed & Mobile Services revenue partly offsetting the YoY decline in low margin interconnect revenue Wholesale revenue (M€, YoY) 3.7% 0.0% 0.9% -4.4% -3.9% 68 64 63 60 61 Fixed & Mobile Services revenue +6.0% 23 • Growth driven by increased MVNO Volume & services to 23 21 19 18 joint-ventu
Slide 23: Q2 OpEx increased following topline growth
Despite efficiencies outpacing inflation effects, Q2 OpEx increased following topline growth & strategic transformation initiatives Domestic OpEx (management view, underlying, M€) Domestic OpEx (M€) +1.3% 1.3% 469 9 469 463 463 -3 Q2’24 WF Non-WF Q2’25 Domestic headcount (FTE) 217 33 10,277 10,135 -
Slide 24: Domestic EBITDA grew +1.9% YoY
Domestic EBITDA grew by +1.9% YoY with growth in Direct margin outpacing the higher Workforce OpEx, while Non-Workforce costs decreased (M€) +1.9% -9 446 14 3 437 Q2’24 Direct margin Workforce costs Non-Workforce costs Q2’25 24
Slide 25: Global Direct margin declined 8% in Q2
Global's exposure to SMS CPaaS, coupled with delays in achieving commercial synergies, resulted in an 8% decline in Direct margin for Q2 Revenue (M€) -15.6% at constant currency On pro forma basis* Direct margin -8.0% (constant currency) -18.8% 452 468 473 436 157 156 367 • Communications & Data: ov
Slide 26: Proximus Global OpEx synergies and EBITDA
Proximus Global OpEx synergies partially offset its Direct margin headwinds in Q2, leading to -5.4% YoY EBITDA, or -3.2% at constant currency OpEx (M€) EBITDA (M€) On pro forma basis On pro forma basis -3.2% at CC ✓ Cost synergies from lower headcount, more than compensating -5.4% the inflationary i
Slide 27: H1 2025 Group CapEx of 542M€
H1 2025 Group CapEx of 542M€, on track to deliver full-year guidance of c.1.3B€ Group CapEx M€, booked, excl. spectrum & football rights On pro forma basis -7.5% 586 542 • Cyclicity of TV content contract renewals (incl. in Other CapEx). • Fiber investments higher YoY following Fiberklaar consolidat
Slide 28: H1 Organic FCF improved
H1 Organic FCF improved, benefiting from higher EBITDA, positive change in WC and lower cash CapEx H1 FCF Operations Investing ( YoY, M€) 266 271 22 -11 -22 14 -5 70 38 -115 612 -727 Reported FCF Adjustments Organic Underlying Change in Interests paid Income Tax paid Cash CapEx Cash Other Organic FC
Slide 29: Asset disposal target raised to 600M€ by end-2027
Initial asset disposal target of 500M€ has been met and raising the total expected proceeds now to 600M€ by end-2027 30M€ 63M€ received for HQ in HQ sold in Q1’25 Q4’23 : Active management of non- core assets supports the Group Real estate 130M€ Up to Datacenter business FCF throughout the elevated
Slide 30: Q&A
Q&A To ask a question, join the conference call → Register here for the Q&A to receive your dial-in details.
Slide 31: Appendix
Appendix
Slide 32: From reported to underlying – EBITDA adjustments
From reported to underlying – EBITDA adjustments Q2’24 Q2’25 Incl. Capital Gain of (M€) (M€) closing sale of Mobile Towers Luxembourg -88M € 486 598 12 3 480 5 5 -25 -3 -24 -2 491 -85 Reported Lease Lease Transformation Acquisitions, Litigation / Underlying Reported Lease Lease Transformation Acquis
Slide 33: Q2 underlying Group EBITDA +1.2% pro forma
Q2 underlying Group EBITDA +1.2%, on pro forma basis (all underlying, M€) Revenue Direct margin -5.6% 1,636 0.0% 14 -8 2 1,544 1,024 1,024 -85 -14 -1 -0.7% -15.6%* +1.6% -8.0%* Q2’24 Domestic Proximus Others** Q2’25 Q2’24 Domestic Proximus Others** Q2’25 Global Global OpEx EBITDA -1.1% 1.2% 6 8 0 49
Slide 34: Strong improvement in Q2 Organic FCF
Strong improvement in Q2 Organic FCF, benefiting from EBITDA growth, lower Income Tax, lower Interests payments, partially offset by higher Cash CapEx Q2 FCF Operations Investing ( YoY, M€) 185 155 -10 31 23 -1 -8 18 11 -3 595 -598 Reported FCF Adjustments Organic FCF Underlying Change in Interests
Slide 35: EBITDA conversion to FCF H1 2025
EBITDA conversion to FCF H1 2025 (M€) 1,163 971 -192 -170 -62 -61 271 266 -675 -8 -5 Reported Adjustments Underlying Change in WC Interests paid Income Tax paid Cash Capex Cash Other Organic Adjustments Reported EBITDA EBITDA and received Investing FCF H1 ’25 H1 ’25 FCF H1 ’25 H1’25 H1 ’25 35
Slide 36: Net income (Group share)
Net income (Group share) Incl. +77M € gain on the sale of the datacenters and the mobile towers in Luxemburg +88M € (M€) +64% 175 -49 -12 313 -24 -5 38 191 H1 2024 Underlying Adjustments D&A Net Tax expense Others (*) H1 2025 EBITDA finance result * Others: Include non-controlling interests and Shar
Slide 37: Strong liquidity position with funding covered until 2028
Strong liquidity position with near-term funding needs covered until 2028 (M€, Proximus SA, status end-June 2025) ~20% in next 5yrs ~80% in ≥ 5yrs Credit ratings BBB+ S&P (negative outlook) A3 Moody’s (stable outlook) Repaid on July 1, 2025 Green Green bond bond ~3.1% 700 Weighted average coupon 750
Slide 38: Adjusted Net Financial Position H1 2025
Adjusted Net Financial Position (excl. lease liabilities) H1 2025 (M€) Net fin position Net fin at end position December Dividends at end 2024 Organic FCF M&A Divestments (incl. NCI) Adjusted Cash Other* June 2025 300 -70 -17 0 -3,733 -3,912 -5 -29 *Other: Mainly re-measurements to FV & amortisation
Slide 39: Shareholder structure
Shareholder structure Status 30/06/2025 Total number of shares Free-float Belgian Government Market Capitalization Gross Dividend yield 338,025,135 42% 56% ~€ 2.8Bn ~7.3% Number of shares Number of shares Number of shares % shares % Voting rights % Dividend rights with voting rights with dividend ri
Slide 40: Contact Investor Relations
Contact Investor Relations Nancy Goossens Bart Boone Investor Relations Lead Investor Relations Manager Proximus Investor E-mail: Call: Relations website: [email protected] +32 2 202 82 41 www.proximus.com/en/investors