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Belgacom to boost investment, trim dividend
2014-02-28 10:16:00| Telecompaper Headlines
(Telecompaper) Belgacom reported fourth-quarter revenues down 3.8 percent from a year earlier to EUR 1.582 billion. EBITDA fell 6.3 percent to EUR 398 million, while net profit came in at EUR 148 million, Over the full year, revenues fell 2.2 percent and EBITDA was down 4.9 percent, hurt by regulatory price cuts and competitive pressures. The Belgian operator increased capex 29 percent to EUR 972 million in 2013, due mainly to EUR 120 million for its 800 MHz licence. Spending included expanding the 4G network to over 50 percent coverage by year-end and preparing the fixed network for the roll-out of vectoring this year. Operating cash flow was down 11 percent over the year to EUR 1.319 billion. Belgacom will pay a dividend of EUR 2.18 for 2013, but said it plans a more modest pay-put of EUR 1.50 per share over the next three years. The operator expects the mobile market to stabilise in the course of this year, as the regulatory impact diminishes and new products win customers. Overall, core group revenues are expected to fall 1-2 percent in 2014. Group EBITDA is forecast down 3-4 percent, including EUR 20 million in extra spending to strengthen its commercial offer, offset by an accounting change on capitalisation of customer connections. Capex this year is estimated at EUR 900 million, including further spending on 4G, vectoring and IT simplification.
Tags: investment
boost
trim
dividend
Category:Telecommunications