Proximus has disclosed its key financial metrics for the fiscal year 2023, showcasing robust growth and strategic investments across various segments.
The telecommunications giant revealed details regarding its Capital Expenditure (Capex), Average Revenue Per User (ARPU), revenue, mobile subscriber base, and Fiber to the Home (FTTH) expansion.
Proximus Group’s Capex for 2023 amounted to EUR 1,325 million, compared to EUR 1,305 million in the preceding year, excluding expenditures related to spectrum and football broadcasting rights.
Notably, the Capex for the fourth quarter of 2023 stood at EUR 421 million, representing a decrease of EUR 43 million compared to the same period in 2022. This decline reflects the anticipated slowdown in Proximus’ proprietary fiber optic network deployment, aligning with the company’s strategic initiatives.
Despite the reduction in Capex for internal fiber development, Proximus in its earnings report said it emphasized its commitment to expanding fiber connectivity across Belgium.
By the end of 2023, the company had extended its Fiber footprint to encompass 147 cities and municipalities, reaching approximately 1,748,000 premises — an increase of 36 percent over the previous twelve months.
Proximus said its revenue rose 2.2 percent to EUR 6.042 billion in 2023. Proximus has generated sales of EUR 4,665 million from domestic, EUR 1,051 million from BICS and EUR 497 million from Telesign in 2023.
At end of 2023, Proximus had 397K FTTH customers, 1.112 million Convergent customers, 2.267 million Internet customers, 1.674 million TV customers, 1.651 million fixed voice customers, 4.973 million mobile prepaid customers (excluding M2M) 4.247 million M2M and 548K postpaid customers.
Proximus highlighted its collaboration with Orange Belgium in mobile network consolidation, facilitated by the establishment of the joint-operation entity Mwingz. This initiative, coupled with increased investments in digital customer experience, underscores Proximus’ dedication to enhancing service quality and technological capabilities.
In terms of financial performance, Proximus’ Domestic segment demonstrated notable growth in Mobile Postpaid subscriptions, with a net addition of 38,000 subscribers during the fourth quarter of 2023. The expansion of Proximus’ Fiber network also contributed to positive outcomes, with significant increases in Internet subscriptions and residential convergent offers.
Despite challenges such as a slight decrease in revenue from fixed voice services and wholesale interconnect revenue, Proximus reported an overall positive revenue trend for the Domestic segment in the fourth quarter of 2023.
Proximus has revealed that Broadband ARPU was EUR 46.8 for the fourth-quarter 2023, (up 7.8 percent from the previous year), mainly benefitting from the price increases, improved price tiering and a growing share of Fiber in the total internet park. The Business Internet base remained stable compared to the previous quarter, at 440,000, Proximus said.
The Residential unit saw an 8.3 percent revenue increase, driven by growth in customer services and convergent offerings. Meanwhile, the Business unit maintained solid performance, supported by growth in IT services, fixed data, and mobile services, Proximus said.
Looking ahead, Proximus anticipates a decrease in Capex for the year 2024, projecting an expenditure of around EUR 1.2 billion. This forecast reflects the company’s strategic focus on optimizing investments while continuing to expand its network infrastructure and enhance customer satisfaction.
Baburajan Kizhakedath
