He also highlights that Proximus is far from being the only player in the telecommunications sector to experience a sharp decline in its market capitalization in Europe. Only one exception to note: Deutsche Telekom because they are also present in the American market with T-Mobile.
“Lots of excuses”
But Proximus’ explanations do not go through with N-VA MP Michael Freilich. “I hear a lot of excuses”particularly on the need “to invest in fiber. All countries must do this!” he proclaims, wondering why the “cash flow is dramatic”. Only 18 million euros. “Even for the market it is very low. KPN (Editor’s note: main telecommunications operator in the Netherlands) has a cash flow of 800 million euros.”
On Proximus’ side, the answer is simple: “We had a cash flow of 500 million euros before fiber. Once the fiber investment, which costs 500 million, is completed, the cash flow will increase. It’s mechanical.” For Guillaume Boutin, it is therefore provisional, but also thoughtful: “It’s a company choice. It’s the choice of the future.”
Not enough to reassure Michael Freilich. “Your own figures contradict you”he says, mentioning the company’s projections estimating the cash flow between 100 and 150 million euros by 2028 to 2030. That is to say after the end of the investment linked to fiber.
He hears externally
More than Proximus’ strategy, the N-VA MP also addressed the question of the company’s international ambitions, denouncing the takeover of the Indian platform Route Mobile. A significant international investment whose funds could have been spent in Belgium.
But for Proximus, the investment will quickly be profitable and will constitute “70% of the cash-flow from Proximus” which will be used for “invest in the Belgian market.”
Finally, several MPs demanded that the telecommunications company accept an external audit. A request which follows suspicions of artificial transactions between BICS, the international subsidiary of Proximus, and Telesign, an American subsidiary of the company. And which would have led to the dismissal of Matteo Gatta, CEO of BICS, in February 2024.
A request to which Proximus responded that an external audit had already taken place. Specifying that the report would be available to MPs. “We have nothing to hide”said Stefaan De Clerck, chairman of the board of directors of the Belgian company.
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