Orange Belgium: Financial information for the fourth quarter and full year 2016

Orange Belgium reached the high end of its 2016 financial target,
established itself as a full convergent player and benefitted from a strong momentum in mobile data
Dividend reinitiated at 0.50 euro

Brussels, 9 February 2017- Today, the Orange Belgium Group (Euronext Brussels: OBEL) published its results for the fourth quarter and full year 2016. In 2016, the Orange Belgium Group was able to successfully establish its position as a customer oriented convergent operator in Belgium and Luxembourg. The rebranding and the launch of the convergent Orange Internet + TV offer have yielded sound results. The new mobile postpaid portfolio allows an ARPU accretive proposition that responds to the strong demand for mobile data services. Orange Belgium has succeeded in 2016 in generating more operational cash flow and has strengthened its financial position by focussing on its cost management and by the normalisation of the investments following the peak of the last years.

• Orange Belgium Group has demonstrated its ability to be a full convergent player in the Belgium market. Orange Belgium ended the year with 33.4 thousand Orange Internet + TV customers and 56.7 thousand associated postpaid SIM cards. Close to 30 % of them were new Orange customers. In the fourth quarter of 2016, Orange Belgium accelerated the net adds of Orange Internet + TV customers to 15.8 thousand, more than the double of the previous quarter.
   
• Orange Belgium Group continued to succeed in monetizing mobile data, leveraging its leading 4G network. The postpaid ARPU in Belgium increased to 29.0 euros versus 28.5 euros a year ago, despite EU roaming impact, supported by the new postpaid portfolio and the increase of 4G penetration. Orange Belgium surpassed 2 million active smartphone users and added 117 and 456 thousand 4G customers in the fourth quarter and full year 2016. In December 2016, total traffic has increased by more than 68 % year-on-year and 4G traffic represented more than 80 % of total traffic.
   
• Orange Belgium Group realized a total turnover of 321.9 and 1,241.6 million euros in the fourth quarter and full year 2016. The total turnover benefitted from a strong performance of total service revenues, which grew by +2.1 % and +0.7 % year-on-year (+5.7 % and +3.4 % excl. EU roaming impact) , driven by the solid growth in mobile service revenues, reaching its highest level since 2013, but also thanks to a return to fixed service revenues growth in the last quarter of 2016 driven by the Orange Internet + TV uptake.
   
• Orange Belgium Group reached the high end of its 2016 financial target , which was upgraded in October 2016. The adjusted EBITDA in the fourth quarter and full year 2016 amounted to 78.5 and 315.7 million euros, an increase of 63.9 % and 14.4 % compared to the same period last year. Excluding the impact of the agreement with the Walloon government on pylon taxes, the 2016 adjusted EBITDA amounted to 300.2 million euros, +1.1 % year-on-year. This result was achieved despite 28.4 million euros EU roaming gross impact. The Orange Belgium Group invested 167.6 million euros, including 18.9 million euros cable capex, and generated an operational cash flow of 149.4 million euros in 2016. The net financial debt stood at 338.0 million euros at the end of 2016, implying a net financial debt/reported EBITDA ratio of 1.1x.
   
• The Orange Belgium Group expects its total service revenues to grow in 2017 and aims at an adjusted EBITDA between 290 and 310 million euros in 2017. This guidance compares to the 300.2 million euros realised in 2016 and shows a strong ambition especially taking into account the 31.9 million euros adverse impact of EU roaming regulation in 2017 . The Orange Belgium Group expects total capex excl. investments linked to the successful uptake of the Orange Internet + TV offer to remain fairly stable compared to 2016.
   
• The Orange Belgium Group aims to balance the appropriate cash returns to equity holders with the requirement of maintaining a balanced and sound financial position, while leaving sufficient leeway to continue to invest in its convergent strategy and the build out of its network. Hence, the Board of Directors of the Orange Belgium Group has decided to propose the Annual General Meeting of Shareholder of May 3, 2017 to pay an ordinary gross dividend for the financial year 2016 of 0.50 euro per share .

Orange Belgium Investor Relations

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