October 30, 2020

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Orange Belgium lowers sales forecast for 2020

Orange Belgium lowers sales forecast for 2020

Telecommunications operator Orange Belgium expects sales to be slightly lower for the full year 2020. The company announced this on Friday when it presented its quarterly results. The (gross) profit expectation remains at its level.

The closure of the stores during the closure has reduced the number of new and converged customers at Orange and also reduced the number of units sold (-11.7 million euros), it said in a press release on Friday. After the reopening of the stores in mid-May, sales recovered to the highest levels. In addition, due to the Corona crisis, there was also a sharp decline in SMS traffic (-16 million euros) and roaming traffic by customers (-4.7 million euros) and visitors (-5.8 million euros).

Orange generated sales of EUR 302.8 million in the second quarter. That’s nearly 8 percent less than in the same period last year. On a six-monthly basis, the decrease was limited to 3 pts.

However, Orange took steps to limit the impact of this decline in revenue, including in human resources management and marketing. In addition, lower activity, such as roaming, also resulted in lower costs. This enabled Orange Belgium to record a higher gross profit (EBITDAaL) in the second quarter: EUR 86 million, an increase of 9.7 percent. Net profit for the company was EUR 19.8 million, 3 million more than in the same period of the previous year. In the cable business, profit more than doubled to EUR 6.4 million.

The company will maintain its profit forecast for the full year unchanged. For the full year 2020, it expects a gross profit (EBITDAAL) of between 310 and 330 million euros.