Belgacom 2Q Results Beat Expectations Due to One-Offs

   By Frances Robinson 
 

BRUSSELS -- Belgacom SA (BELG.BT) posted second-quarter results which exceeded analyst expectations due to several one-off gains, and raised its full-year guidance Friday.

Net profit was EUR251 million ($336 million) compared with EUR155 million for the same period last year, substantially ahead of expectations for EUR149 million at the former monopoly, which is majority-owned by the Belgian state. Second-quarter sales were EUR1.568 billion from EUR1.583 billion a year earlier.

Group earnings before interest, taxes, depreciation, and amortization (EBITDA) was EUR491 million, a year-on-year increase of EUR61 million. This was driven by a EUR 46 million capital gain on building sales, EUR11 million net positive impact of HR-related special bookings, and EUR6 million from a positive litigation settlement. There was a EUR6 million positive impact from adjusting the way customer installation costs are accounted for -- which will likely have a positive impact of EUR20 million over the full year.

Excluding special items for a total amount of EUR65 million, the Belgacom Group second-quarter EBITDA declined by 0.9% on a like-for-like basis.

Belgacom's chief executive, Dominique Leroy, who took over earlier this year and is the first and only female CEO amongst Belgium's blue-chip companies, said the company is raising its full-year expectations for Group EBITDA. She said it would decline less than previously forecast. In 2013, full-year group EBITDA was EUR1.713 billion.

"With Belgacom's sound business trends and some positive one-offs being higher than expected, we raise our full-year EBITDA expectations and estimate the year-on-year decline to be between '-1% to -2%' compared with 2013," she said in a statement.

The company had previously expected EBITDA to decline 3% to 4% compared with the 2013 EBITDA. Its previous sales guidance, for full-year sales falling 1%-2% from 2013, was reiterated in the results statement.

Write to Frances Robinson at [e-mail]

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