Proximus Earnings: International Operations Drive Top-Line Beat; Digi Launch Slow So Far

Narrow-moat Proximus reported better-than-expected fourth-quarter 2024 group results, though much of the positive surprise came from Proximus’ international operations. Domestic revenue growth of 3.2% came in ahead of company-compiled consensus, but flat underlying domestic EBITDA of EUR 392 million fell slightly short. Group-level figures reached the top end of management's 2024 guidance, which was raised at third-quarter results. Convergent additions, broadband net additions, and postpaid mobile lines all came in modestly ahead of company-compiled consensus, allaying investors' immediate fears over the entry of Digi, an ultracompetitive operator. Digi also reported results on Feb. 28, but gave no customer numbers for Belgium because, so far, it has not attracted a sizable subscriber base. Proximus' results, along with the initial outlook for 2025, appear to be well received, with shares up some 5% intraday. We maintain our EUR 9.20 fair value estimate.