Proximus unveils bold growth strategy, but cuts dividends and IT spend

Leading Belgium operator Proximus has unveiled a three-year strategy called bold2025 which is says will deliver growth and long term value creation. In the short term, however, it will also involve a dividend cut for shareholders.

Laying out its financial forecasts, Proximus said: “Domestically, Proximus’ 2025 financial ambition will see revenue growth, and a return to the 2022 underlying EBITDA level by 2025. Internationally, the Group will deliver high single digit Direct Margin growth between 2022 and 2025, for Telesign and BICS combined.”

During the same period, Proximus says CAPEX investments will reduce and the company will divest over €400 million of non-core assets. In the short term, the company says: “Inflationary headwinds will drive the 2023 Domestic and Group underlying EBITDA down by around -3% YoY.” The shareholder dividend will be stable at €1.20 per share in 2023, provided a financial performance delivery in line with the strategic plan, but will be rebased to €0.60 per share for 2024 and 2025.

In terms of bold2025’s core components, Proximus has set out six pillars. Among these, it plans to “be the reference in gigabit networks, offering Fiber to 50% of Belgium households by 2025 and 95% by 2032, as well as 100% 5G deployment by 2025”.

It also plans to modernise and innovate IT platforms “while structurally lowering the cost of IT operations”. As for customer experience it is aiming to lead the market by offering “product superiority, a digital-first mindset and by leveraging innovative B2C digital platforms, such as Pickx & Proximus+, a new, soon to be launched app regrouping services in telco, fintech, mobility, ehealth and energy”.

In terms of growth plans it says domestic expansion will be driven by “fiber commercialisation, B2C multi-brand strategy/convergent offers and sustained ICT growth in the Business market”. Internationally growth will come from “rapid-scaling domains, Digital Communications & Digital Identity, thanks to BICS & Telesign”.

Tags: Belgium, Proximus

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