Proximus Group reported a solid start to 2026 with continued growth in mobile subscribers, broadband customers, fiber connections and convergent services in its Domestic business, while the transformation of its Global division continued amid weakness in CPaaS messaging and international voice markets.
Proximus Group generated revenue of EUR 1.524 billion in the first quarter of 2026, down 6.2 percent, mainly due to lower revenue from the Global segment. Group EBITDA declined 1.9 percent to EUR 468 million, while net income fell 9.8 percent to EUR 124 million.
The Belgian telecom operator maintained strong momentum in its Domestic market despite intense competition. Proximus added 17,000 Mobile Postpaid subscribers during the quarter, while its broadband Internet customer base expanded by 10,000.
Residential convergent customers increased by 14,000 to 1.234 million, representing 4.3 percent year-on-year growth, reflecting the company’s strategy of driving customer intimacy through bundled multi-service offerings.
Fiber broadband remained central to Proximus’ long-term infrastructure and digital transformation strategy. By the end of March 2026, the company’s fiber network covered 2.665 million homes and businesses across Belgium. Active Residential and Business Fiber lines reached 776,000, with net additions of 45,000 during the quarter.
The company said its expanding fiber footprint and convergent offerings continue to support broadband revenue growth and strengthen customer retention. Proximus also confirmed that the full integration of Fiberklaar is delivering operational efficiencies in Flanders.
Residential revenue rose 1.5 percent, supported by a 2.3 percent increase in customer services revenue driven by strong commercial performance and inflation-linked price adjustments implemented in January 2026. Convergent revenue increased 4.2 percent.
Proximus said the Business segment faced pressure from lower IT hardware sales compared with an exceptionally strong prior-year quarter. Business revenue declined 6 percent, while Business Services revenue fell 2.3 percent due to declines in fixed voice and legacy connectivity services, alongside pricing pressure in mobile services. Internet services revenue continued to grow.
Proximus continued to reposition its enterprise business around digital infrastructure, cybersecurity, sovereign cloud and AI-driven solutions. Its B2B arm, Proximus NXT, was selected as a sovereign cloud provider for European institutions, strengthening the company’s role in critical public sector, defense and cybersecurity projects.
Artificial intelligence and sovereign digital infrastructure are becoming increasingly important growth areas for Proximus. The company highlighted its investments in trusted cloud, cybersecurity and AI-enabled enterprise services aimed at regulated industries and public-sector customers.
On the mobile network side, Proximus launched 5G Standalone services as the first telecom operator in Belgium, reinforcing its leadership in next-generation connectivity. The company is also progressing with network collaboration agreements involving Wyre and Telenet to accelerate gigabit broadband deployment in Flanders, pending regulatory approval.
Proximus continued its Opex optimization strategy through operational efficiency gains, infrastructure integration and disciplined cost management. Proximus said these measures remain essential to protecting margins in a highly competitive telecom environment.
The Global division continued to face significant challenges. Revenue in Proximus Global declined 18.8 percent to EUR 354 million, while direct margin fell 16.8 percent to EUR 103 million. The weakness was linked to structural declines in CPaaS SMS traffic, especially one-time-password messaging, and unfavorable international voice traffic mix trends.
Global Opex declined 4.6 percent to EUR 70 million as Proximus implemented cost reduction measures, although quarterly expenses increased due to targeted investments aimed at supporting the turnaround strategy. EBITDA for the Global segment fell 34.3 percent year-on-year to EUR 33 million.
Capital expenditure for the first quarter totaled EUR 261 million, down EUR 9 million. The reduction was mainly due to lower spending on fiber deployment and mobile infrastructure as the mobile network-sharing rollout nears completion. Proximus expects full-year Capex to range between EUR 1.2 billion and EUR 1.25 billion.
Looking ahead, Proximus reiterated its 2026 guidance, expecting stable Domestic Services revenue and EBITDA, Global EBITDA between EUR 100 million and EUR 130 million, and Organic Free Cash Flow of up to EUR 100 million. The company also expects its net debt-to-EBITDA ratio to remain around 2.8x.
BABURAJAN KIZHAKEDATH