UPDATE: Mobistar Posts Strong 1Q As Mobile Internet Use Soars
22 Avril 2010 - 8:48AM
Dow Jones News
Mobistar SA (MOBB.BT), Belgium's second-largest mobile player,
posted better than expected first-quarter numbers Thursday as
mobile Internet use soared.
Net profit for the quarter was EUR68.5 million, up 14% from
EUR60.1 million in the same quarter last year and beating analysts'
expectation of around EUR61 million.
Sales rose 6.1% to EUR394 million.
The number of mobile Internet customers rose 51% to 88,603 at
the end of March from a year earlier.
"More and more customers wish to stay online and use the mobile
Internet in addition to their fixed broadband subscription," the
company said in its earnings statement.
At the end of March, mobile data made up 31% of the company's
mobile services revenue, from 27% a year earlier.
Strong sales of mobile phones also boosted revenue, the company
said.
Mobistar said the strong results meant it could keep to its
forecasts for full-year 2010, despite tough new regulations that
will cap the fees operators can charge for routing calls to and
from competing networks from July this year, and force
telecommunications companies to reduce the charges on calls made
overseas.
The new rules will knock about EUR67 million off overall sales
this year, it said.
The company is expecting full-year sales to remain at least
stable and net profit to reach between EUR210 million and EUR230
million with earnings before interest, tax, depreciation and
amortization between EUR500 million and EUR520 million.
Mobistar, majority-owned by France Telecom SA (FTE), has been
struggling to maintain market share in its small Belgian home
market which has a population of just 10.5 million and where
telecommunications services are dominated by state-owned Belgacom
(BELG.BT). It is also is being squeezed by new
TV-Internet-Telephone-Wireless options from cable companies like
Telenet (TNET.BT).
It has been trying to broaden its traditional mobile offering to
include super fast fiber optic broadband services. It expects to
invest 10% of its total service revenue this year in network
upgrades.
Mobistar shares closed Wednesday at EUR46.52, down 2.8% so far
this year.
-By Carolyn Henson, Dow Jones Newswires; +32 2 741 1481;
carolyn.henson@dowjones.com
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