Proximus Group said it is aiming to become a worldwide leader in digital communications following the completion of the 643 million euros deal to acquire Route Mobile.
In 2023, on a 12-month pro forma basis, International segment including Route Mobile represented around EUR 1.9 billion of revenue, c. EUR 480 million of direct margin, c. EUR 180 million of EBITDA and c. EUR 60 million of FCF.
Proximus includes the entire value chain of digital communications, from P2P Voice & Messaging and Mobility services to CPaaS and Digital Identity.
In the next three years, market growth is estimated at 10 to 15 percent CAGR for CPaaS and about 15 percent CAGR for digital identity, while Mobility services are expected to grow around 5 percent CAGR. This growth will be driven by hyper-personalized digital interactions and the demand for seamless and safe multi-channel experiences.
Proximus will rely on four differentiators: a combination of networks and data capabilities; product portfolio; global go-to-market capabilities with strong footholds and established brands all over the world; and a highly experienced team with expertise in a variety of digital communications domains, coupled to robust governance.
The international strategy will create material value for Proximus Group in the coming years through market share gains, synergy potential and high cash conversion.
By 2026, Proximus expects the International segment to bring an annual revenue between EUR 2 billion and EUR 2.5 billion across the three brands BICS, Telesign and Route Mobile, with the direct margin expected to range between EUR 600 million and EUR 650 million.
Proximus said the EBITDA margin is expected to improve from around 9 percent in 2023 to about 14 percent by 2026, supported by more than EUR 100 million of yearly EBITDA synergies at run rate, which represents an upgrade compared to previously communicated projections of EUR 90 million.
Finally, the low capex intensity and highly scalable nature of the international business is expected to drive the cash conversion ratio to 50 percent-75 percent, therefor expected to contribute significantly to the Proximus Group FCF.