Download PDF

1. Company Snapshot

1.a. Company Description

Proximus PLC provides digital services and communication solutions in Belgium and internationally.It operates through Domestic, International Carrier Services, and TeleSign segments.The company offers fixed and mobile telephony, internet, and television services to residential customers and small businesses; telecommunication, ICT infrastructure, multi-cloud, digital finance, cybersecurity, business applications, and managed and training services to medium and large companies, and public administrations; and ICT services to residential, business, and telecom wholesale markets.


It also provides managed and platform, integrating networking, cloud, cybersecurity, and data and artificial intelligence services.In addition, the company offers international delivery authentication and digital identity services to internet brands, digital champions, and cloud native businesses.It offers its products and services under Proximus, Scarlet, Mobile Vikings, Tango, Telindus, and Telindus Netherlands brands.


The company was formerly known as Belgacom SA and changed its name to Proximus PLC in June 2015.Proximus PLC was founded in 1930 and is headquartered in Brussels, Belgium.

Show Full description

1.b. Last Insights on PROX

Proximus PLC's recent performance was negatively impacted by increasing competition in the Belgian telecom market, as evidenced by the partnership between Orange Belgium and Proximus to expand fiber deployment in Wallonia. This collaboration may lead to higher capital expenditures and intensify competition. Additionally, the company's reliance on large contracts, such as the NATO IT infrastructure modernization deal with Thales, may pose risks if these contracts are not renewed or are subject to delays. Furthermore, the integration of new technologies, like the React Native player SDK for Proximus Pickx, may pose technical challenges and increase operational costs.

1.c. Company Highlights

2. Proximus' Q3 2025 Earnings: Domestic Strength, Global Challenges

Proximus reported a stable services revenue and a 1.8% growth in domestic EBITDA in Q3 2025, despite intense competition. The company's EPS came in at EUR 0.222, in line with estimates. Group EBITDA was EUR 475 million, a decline of 1% year-on-year. The company's free cash flow for the first 9 months was EUR 428 million, with an organic free cash flow of EUR 159 million. The P/E Ratio of 3.92 and EV/EBITDA of 2.93 suggest that the stock is relatively undervalued.

Publication Date: Nov -09

📋 Highlights
  • Domestic EBITDA Growth:: Proximus achieved a 1.8% growth in domestic EBITDA, with stable services revenues, despite competitive pressures.
  • Network Expansion:: 5G coverage exceeded 85%, and fiber reached 47% of Belgian homes/businesses, supporting domestic market resilience.
  • Proximus Global Challenges:: Segment EBITDA is expected to decline by ~10% YoY due to SMS CPaaS decline and integration issues, with a revised EUR 100–130 million 2026 target.
  • Free Cash Flow Performance:: Organic free cash flow for H1 2025 was EUR 159 million, with full-year guidance around EUR 100 million amid reduced CapEx of EUR 1.25 billion.
  • Strategic Asset Sales:: Completion of Be-Mobile sale advanced EUR 600 million asset program, while new CEO Stijn Bijnens outlined plans for B2B growth in cybersecurity, cloud, and AI.

Domestic Performance

Proximus' domestic business continued to show robust performance, with mobile postpaid adding 45,000 cards and the Internet subscriber base growing by 12,000 lines. The convergent base also grew steadily, adding 12,000 residential customers. According to Stijn Bijnens, the new CEO, "the company's strong domestic performance, solid B2B position, and well-performing networks" are key strengths. The 5G coverage is over 85%, and fiber covers more than 47% of Belgian homes and businesses.

Global Challenges

The Proximus Global segment, however, faced challenges, including a decline in SMS CPaaS and integration issues, which led to a reassessment of ambitions. The direct margin was down by 12.2% at constant currency, causing an EBITDA decline of 22.3%. The company expects Proximus Global's EBITDA to be lower year-on-year by around minus 10% for the full year. For 2026, Proximus Global EBITDA is expected to be in the range of EUR 100 million to EUR 130 million.

Guidance and Outlook

The company has updated its outlook, with domestic EBITDA expected to grow up to 2% for the full year. Proximus has lowered its CapEx guidance to approximately EUR 1.250 billion and expects organic free cash flow to land around EUR 100 million. The company aims to unlock opportunities in B2B, specifically in cybersecurity, cloud, and hybrid cloud, and expects an inflection point in 2027 for Proximus Global. Analysts estimate next year's revenue growth at -0.2%.

Valuation and Dividend

The stock's Dividend Yield is 6.07%, and the Free Cash Flow Yield is 11.26%, indicating an attractive return profile. The P/B Ratio is 0.5, suggesting that the stock is undervalued relative to its book value. Proximus confirmed its intention to return an interim dividend of EUR 0.30 per share payable on December 5.

3. NewsRoom

Card image cap

Proximus (ENXTBR:PROX): Exploring Potential Undervaluation After Recent Momentum Shift

Oct -03

Source:

Card image cap

Belgium Telecom Market Report 2025-2033: Focus on Voice Services, Data Services, IoT Services, OTT, PayTV Services, Messaging, VAS

Sep -26

Source:

Card image cap

Orange Belgium and Proximus sign a Memorandum of Understanding to expand fiber deployment and increase access to gigabit networks in Wallonia

Jul -25

Source:

Card image cap

castLabs delivers new React Native player SDK to expand 3SS' 3Ready solution for Proximus

Jun -20

Source:

Card image cap

Proximus, Thales win contract to modernise NATO IT infrastructure

Jun -10

Source:

Card image cap

📈 HIMS' Asymmetric Opportunity, JIN’s Overlooked Strengths, and PROX's Possible Re-Rating

May -21

Source:

Card image cap

Proximus SA (BGAOF) Q1 2025 Earnings Call Highlights: Strong Global EBITDA Growth and Strategic ...

May -10

Source:

Card image cap

Route Mobile Ltd (BOM:543228) Q4 2025 Earnings Call Highlights: Navigating Growth Amidst Challenges

May -09

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.27%)

6. Segments

Domestic

Expected Growth: 2%

Proximus PLC's domestic segment growth is driven by increasing demand for high-speed internet and TV services, coupled with a growing adoption of converged fixed-mobile services. Additionally, investments in fiber network expansion and 5G rollout are expected to support future growth.

BICS

Expected Growth: 3%

Proximus PLC's BICS segment growth is driven by increasing demand for international wholesale services, expansion into new markets, and strategic partnerships. Additionally, the growing need for high-quality, low-latency connectivity solutions and the adoption of 5G and IoT technologies are contributing to the segment's 3% growth.

Telesign

Expected Growth: 4%

Telesign's 4x growth is driven by increasing demand for digital identity verification, fueled by rising online transactions and growing concerns over fraud. Proximus PLC's strategic investment has enabled Telesign to expand its product offerings, enhance customer experience, and strengthen its market position, thereby accelerating growth.

Eliminations

Expected Growth: 0%

Proximus PLC's stagnant growth is attributed to intense competition in the Belgian telecom market, limited pricing power, and high capital expenditures for 5G network upgrades. Additionally, declining voice and SMS revenues, coupled with modest growth in fixed-line and ICT services, contribute to the elimination of growth.

7. Detailed Products

Fiber Internet

High-speed internet connectivity for homes and businesses

Mobile Postpaid

Mobile phone plans with data, voice, and text allowances

TV

Digital television services with access to various channels and on-demand content

Fixed Telephony

Landline phone services for homes and businesses

ICT Solutions

Customized IT solutions for businesses, including cybersecurity and cloud services

Data and Connectivity

Secure and reliable data connectivity solutions for businesses

Cybersecurity

Comprehensive cybersecurity solutions to protect against threats and attacks

Cloud Services

Scalable and flexible cloud infrastructure solutions for businesses

8. Proximus PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

Proximus PLC operates in a highly competitive market, and customers have various alternatives to choose from. However, the company's strong brand reputation and wide range of services help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Proximus PLC's customers have a high bargaining power due to the availability of alternative service providers. The company needs to focus on customer retention and satisfaction to maintain its market share.

Bargaining Power Of Suppliers

Proximus PLC has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company's strong relationships with its suppliers also help to mitigate any potential risks.

Threat Of New Entrants

The telecommunications industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This reduces the threat of new entrants and allows Proximus PLC to maintain its market position.

Intensity Of Rivalry

The telecommunications industry is highly competitive, with several players competing for market share. Proximus PLC needs to focus on differentiating its services and improving its operational efficiency to maintain its competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 54.84%
Debt Cost 3.95%
Equity Weight 45.16%
Equity Cost 5.27%
WACC 4.54%
Leverage 121.42%

11. Quality Control: Proximus PLC passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Telenor

A-Score: 6.9/10

Value: 4.8

Growth: 3.3

Quality: 5.7

Yield: 8.8

Momentum: 9.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Proximus

A-Score: 6.9/10

Value: 9.3

Growth: 3.4

Quality: 5.2

Yield: 9.4

Momentum: 7.5

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Telekom Austria

A-Score: 6.8/10

Value: 8.1

Growth: 4.7

Quality: 6.5

Yield: 6.9

Momentum: 6.5

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
KPN

A-Score: 6.4/10

Value: 4.1

Growth: 4.1

Quality: 5.9

Yield: 7.5

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Freenet

A-Score: 6.3/10

Value: 6.6

Growth: 3.2

Quality: 7.5

Yield: 9.4

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Tele2

A-Score: 5.5/10

Value: 3.0

Growth: 3.2

Quality: 5.8

Yield: 8.8

Momentum: 9.5

Volatility: 3.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.1$

Current Price

7.11$

Potential

-0.00%

Expected Cash-Flows