October 26, 2018 / 6:56 AM / a year ago

UPDATE 1-Belgium's Proximus raises core profit outlook on lower roaming costs

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Oct 26 (Reuters) - Belgian telecoms operator Proximus raised its full-year underlying core profit guidance on Friday, citing lower than-expected roaming costs and “one-off tailwinds” in the first half.

The company now expects an increase in full-year underlying core profit (EBITDA) of 2-3 percent compared to its previous guidance of “slight growth”.

Proximus had previously announced that it benefited from the renegotiation of several supplier contracts in the first half.

On Friday it said “roaming-out” volumes remained below its projections. Roaming-out volumes refer to the interconnection costs paid by mobile operators when their clients travel abroad.

“They (Proximus) are faced with having more roaming-out volumes than roaming-in, meaning that typically they pay more on the traffic that is being done abroad than the traffic of foreign operators in Belgium,” said KBC Securities analyst Ruben Devos.

Underlying core profit for the third quarter was 470 million euros, slightly above the 465 million euros recorded in a company-compiled poll. (Reporting by Alan Charlish in Gdynia; Editing by Muralikumar Anantharaman and David Evans)

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