Proximus Group reports resilient Domestic Q3 performance and a return to Direct margin growth for Global; full-year guidance raised for Global EBITDA and Group FCF.

Highlights Q3 2026

• Proximus' Domestic segment ended the third quarter of 2026 with a solid net gain of +18,000 Mobile Postpaid cards, including +23,000 cards added by Residential in a highly promotional market. Proximus' Fiber footprint reached 2,814,000 homes and businesses passed end-September 2026, covering over 44% of the population and fueling further growth for its total Domestic Internet base with +5,000. Likewise, Residential convergent offers grew by +7,000 customers to a total of 1,254,000, a +3.9% year-on-year increase. End-September 2026, the number of active Residential and Business Fiber lines totaled 858,000, adding +38,000 in the third quarter of 2026. The customer bases for TV and Fixed Voice continued their steady declining trend, with subscriptions for the third quarter 2026 lower by -13,000, and -38,000 respectively.
• Domestic's third quarter 2026 underlying revenue totaled EUR 1,183 million, up +0.3% year-on-year on a pro forma basis, i.e. excluding the divestiture impact of Be-Mobile (including this impact, the revenue was down -0.7% year-on-year). The pro-forma Services revenue increased +0.4% year-on-year over the third quarter 2026.
• Residential revenue totaled EUR 640 million, +2.4%, extending previous quarters' improvement. Growth was driven by a +2.9% increase in Customer Services revenue, supported by a solid commercial performance, the January 2026 inflation-based price adjustment and a modest contribution from the return of Belgian Jupiler Pro&ngsp;League football rights. Convergent revenue increased +4.7% year-on-year.
• Third-quarter Business revenue declined -1.9% year-on-year on a pro forma basis to EUR 464 million. Business Services revenue declined by -2.8%, broadly in line with recent quarters. Continued declines in Fixed Voice and traditional data connectivity were partly offset by Internet revenue growth, while competition further pressured Mobile Services revenue. IT Services revenue fell -2.8%, reflecting project implementation delays partly offset by continued cybersecurity growth.
• Proximus Wholesale posted third quarter revenue of EUR 55 million, a -8.1% year-on-year decrease, including a EUR -5 million decline in Interconnect revenue (no margin impact). Wholesale Services revenue was up by +0.6%,including higher roaming revenue, continued growth in MVNO-revenue and increasing fiber wholesale volumes, nearly fully offset by the consolidation-effect of services delivered to Unifiber.
• In the third quarter of 2026, Domestic EBITDA totaled EUR 426 million, down -1.4% or EUR -6 million year-on-year on a pro forma basis (-2.4% including Be-Mobile). Direct margin grew by +0.5% year-on-year, more than offset by a +2.4% increase in OpEx, which included a c. EUR 5 million Unifiber consolidation impact. This drove non-workforce costs up by +6.5%, alongside inflation, rental, and cloudification costs. Workforce expenses remained nearly stable, as lower headcount offset the impact of inflation-driven wage indexation.
• Proximus Global posted EUR 369 million revenue, limiting the third quarter decline to -2.0% (-0.5% at constant currency). Sooner than anticipated, the Direct margin trend turned to growth, up for the third quarter by +0.8% year-on-year to a total of EUR 106 million (+2.1% at constant currency), and up by +4.5% quarter-on-quarter. Communications & Data Direct margin was up +4.4% year-on-year, supported by stabilizing CPaaS SMS and a better performance in growth products (Omnichannel, Digital Identity, Cloudcom and IoT). P2P Voice & Messaging limited its Direct margin decline to -12.7% year-on-year. With OpEx reflecting inflationary impacts and targeted growth initiatives to foster the business turnaround, the Global EBITDA reached EUR 35 million, a -8.1% year-on-year decline (-6.2% at constant currency).
• Overall, the Proximus Group underlying revenue totaled EUR 1,535 million for the third quarter of 2026, nearly stable (-0.2%) on a pro forma basis (-1.0% including Be-Mobile). The Underlying Group EBITDA totaled EUR 461 million, -2.0% year-on-year on a pro forma basis (-2.9% including Be-Mobile).
• The nine months Proximus Group CapEx totaled EUR 835 million, year-on-year higher by EUR 10 million. This increase was mainly due to the phasing of multi-year content contract renewals and the consolidation of Unifiber since 1 June 2026. At the same time, CapEx requirements in dense areas continued to decline as deployment gradually moves closer towards completion.
• The year-to-date September 2026 Organic FCF totaled EUR 114 million, compared to EUR 153 million in 2025^[1]. The year-over-year decrease was mainly driven by lower underlying Group EBITDA (EUR -47 million), higher interests paid (EUR -19 million) and higher cash CapEx (EUR -14 million), partly offset by a positive contribution of working capital (EUR +48 million).

Stijn BijnensCEO of the Proximus Group:

"Our Domestic segment delivered a resilient third quarter, supported by a good commercial performance in our Residential unit. Our multi-brand strategy continued to drive growth in Mobile Postpaid, Internet and Convergent customers, resulting in a solid growth in Residential Customer Services revenues. Our Business unit continues to progress with its two-year transformation program. Telecom services remain under pressure, while delays in implementing certain IT projects have affected IT services. Addressing these delays will be a key focus in the coming quarters.

I'm particularly pleased with the disciplined execution of Global's strategic plan, which has delivered Direct margin growth ahead of expectations. Stronger customer farming is supporting a more stable Direct margin trajectory, alongside stabilising CPaaS SMS and a growing contribution from growth products. Further OpEx investments will support Global's next phase of growth, with a stronger focus on acquiring new customers.

In this context, we raise our full-year 2026 EBITDA guidance for Proximus Global to EUR 125-135 million. Together with slightly lower expected CapEx, this allows us to raise our outlook for Organic Free Cash Flow to around EUR 100 million.

Recent dynamics around satellite connectivity and AI agents have weighed on telecom sector sentiment. We believe we are well positioned to manage these developments while capturing the opportunities they create. Collaboration agreements are expected to extend fiber coverage to 80% of Belgium in the coming years, while the combination of fiber, HFC and FWA will enable us to offer gigabit speeds to nearly all customers. Belgium's highly converged market also provides a strong structural basis for customer retention. Satellite connectivity opens wholesale opportunities, while AI increases the value of our networks by driving demand for secure, high-capacity, low-latency connectivity. We see AI agents as the next step in how customers discover product portfolios, not a fundamental shift, and believe our distinctive product and services differentiation enables us to deliver superior customer experience. Our priorities remain clear: invest in best-in-class networks, use AI to enhance efficiency and customer experience, and create shareholder value."

Guidance 2026

Based on the financial performance over the first nine months of the year, and Proximus' best estimate for the remaining quarter, the Domestic guidance is reiterated, expecting underlying Domestic Services revenue and EBITDA for 2026 to stay broadly stable on a pro forma basis.

For the Proximus Global segment, the full-year EBITDA expectation is raised to EUR 125-135 million reflecting an earlier-than-expected improvement in Direct margin combined with disciplined OpEx investments to support the turnaround. Given the promising signs of direct margin growth, Global will step up selective OpEx investments from the fourth quarter of 2026, with special focus on customer acquisition and sustainable growth.

The improved EBITDA outlook for the Global segment, alongside Group CapEx expectations being slightly lowered, leads to an improved outlook for Organic FCF^[1] to around EUR 100 million for the full-year 2026.