Orange Belgium S.A.: history, ownership, mission, how it works & makes money

A Brief History of Orange Belgium S.A.

Orange Belgium S.A., established in 1994 as Belgium's first GSM mobile telephony operator, began its journey under the name "Mobistar." Initially a joint venture between France Télécom (now Orange S.A.) and a local partner, the company rapidly expanded its customer base by offering innovative mobile solutions. As of September 2023, Orange Belgium had approximately 4.1 million mobile customers.

In 2000, Orange S.A. acquired full ownership of the company. The rebranding from Mobistar to Orange Belgium occurred in 2016, aligning the brand with its parent company and enhancing its identity within the global telecommunications market.

Orange Belgium has continued to invest in its infrastructure. By the end of 2022, the company reported a network coverage of 99% of the population for 4G services and has been actively expanding its 5G coverage, reaching 35% of the population in major urban areas.

On the financial front, Orange Belgium reported a revenue of €1.35 billion for the fiscal year 2022, up from €1.31 billion in 2021. This growth was attributed to an increase in both mobile and fixed broadband subscriptions.

The company's strategy has focused on enhancing digital services and expanding its products beyond traditional telecommunications. By the first half of 2023, Orange Belgium reported a strong growth in its digital services, contributing approximately €150 million to its total revenue, driven by cloud and cybersecurity solutions.

In terms of customer satisfaction, Orange Belgium has maintained a high score, with a Net Promoter Score (NPS) of 30 as of Q2 2023, indicating a strong customer loyalty trajectory.

With respect to stock performance, Orange Belgium is listed on the Euronext Brussels under the ticker symbol "OBEL." As of October 2023, the stock price stood at €16.25, reflecting a year-to-date increase of 12%.

Orange Belgium has also committed to sustainability, aiming for a 40% reduction in carbon emissions by 2025 compared to 2020 levels, as part of its broader environmental strategy.

In summary, Orange Belgium S.A. has experienced significant growth and transformation, driven by its strategic initiatives in infrastructure, digital services, and customer satisfaction. With a strong financial foundation and a clear focus on sustainability, the company is well-positioned within the competitive telecommunications landscape.

A Who Owns Orange Belgium S.A.

Orange Belgium S.A., a major player in the telecommunications industry in Belgium, operates under the ownership of several stakeholders. As of the latest financial reports, the primary shareholders are as follows:

Orange S.A., headquartered in France, is the dominant shareholder with a stake of 50.01%, positioning it as the majority owner of Orange Belgium. This ownership facilitates strategic decisions and operational control in the Belgian market.

The free float, which accounts for 49.99% of the shares, represents shares that are available for public trading on the stock exchange. This includes institutional investors, private investors, and various funds.

As of 2023, the stock performance of Orange Belgium S.A. has shown notable trends. The market capitalization was approximately €1.4 billion with a share price fluctuating between €18.00 and €22.50 over the previous year. The company reported a revenue of €1.1 billion for the fiscal year ending December 2022, with an EBITDA of approximately €290 million.

In terms of financial metrics, Orange Belgium reported a net income of €85 million for 2022, which reflected a growth of 5% compared to the previous year, indicating a stable operational performance amidst competitive challenges.

The governance structure of Orange Belgium also reflects its ownership. The board of directors comprises representatives from Orange S.A. as well as independent members, ensuring a balance between strategic oversight and independent evaluation.

The telecommunications sector in Belgium is characterized by intense competition, and Orange Belgium has positioned itself through various investments in network expansion and digital services. Its customer base as of 2022 was approximately 3.5 million mobile subscribers and around 1.2 million fixed broadband customers.

In recent developments, Orange Belgium launched 5G services in several regions, aiming to capture a larger market share in the rapidly evolving telecom landscape. This strategic move is supported by significant capital expenditures aimed at enhancing their infrastructure.

Orange Belgium S.A. Mission Statement

Orange Belgium S.A. aims to be a key player in the digital transformation of its customers. The company is committed to providing high-quality telecommunication services, including mobile, fixed internet, and television, while focusing on customer experience and innovation.

As of the latest data in 2023, Orange Belgium operates a mobile network that covers over 99% of the Belgian population. The company had approximately 4.5 million mobile customers and more than 1.5 million fixed broadband customers.

According to its financial report Q3 2023, Orange Belgium reported a revenue of €1.5 billion, showing a growth of 1.5% year-over-year. The EBITDA reached €590 million, resulting in an EBITDA margin of 39.3%.

Orange Belgium emphasizes sustainability by committing to reduce greenhouse gas emissions by 30% by the year 2030, in alignment with its overall environmental goals. The company is actively investing in renewable energy and aims to achieve a 100% renewable electricity usage in its operations by 2025.

Through its mission statement, Orange Belgium seeks to connect individuals and businesses, provide innovative solutions, and enhance digital accessibility, making a strong impact on society and the economy.

How Orange Belgium S.A. Works

Orange Belgium S.A. is a telecommunications provider that operates primarily in Belgium. As a subsidiary of the multinational Orange S.A., the company delivers mobile, fixed telephony, and broadband services. As of the second quarter of 2023, Orange Belgium reported a customer base of approximately 4.5 million subscribers across its mobile and fixed services.

In 2022, Orange Belgium generated a revenue of €1.5 billion, showcasing a steady growth trajectory. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the same year was reported at €461 million, resulting in an EBITDA margin of approximately 30.7%.

Orange Belgium's business model focuses on diversifying its service offerings, which include:

• Postpaid and prepaid mobile subscriptions
• Fixed broadband internet services
• Television services
• Corporate services

As of the end of Q2 2023, the breakdown of their subscriber base was as follows:

In the mobile segment, Orange Belgium offers various plans, catering to different consumer needs, from budget-friendly options to premium unlimited data plans. The company has reported a steady increase in its postpaid customer segment, which accounted for approximately 64% of total mobile subscribers as of the latest quarterly report.

Investment in network infrastructure is central to Orange Belgium's strategy. The company has committed over €1 billion for network expansion and improvement over the next five years. This includes the rollout of 5G technology across major Belgian cities, enhancing both speed and service quality for its customers.

Operational efficiency is crucial for Orange Belgium. In 2022, the company reported a net profit of €78 million, reflecting an increase of 10% over the previous financial year. This growth was driven largely by new customer acquisitions and upselling additional services to existing customers.

Following the industry trends, Orange Belgium is focused on digital transformation initiatives, including investments in artificial intelligence and data analytics to improve customer service and operational effectiveness.

The company also emphasizes sustainability, committing to reduce its carbon footprint by 50% by 2025. This is part of a broader commitment seen across the Orange Group to engage in environmentally responsible business practices.

Orange Belgium's stock is traded on the Euronext Brussels under the ticker symbol OBEL. As of October 2023, the company's stock price is approximately €19.50, with a market capitalization of around €1 billion.

Overall, Orange Belgium combines a robust operational framework with a focus on customer-centric services, technological advancement, and financial sustainability, establishing itself as a key player in the Belgian telecommunications market.

How Orange Belgium S.A. Makes Money

Orange Belgium S.A. primarily derives its revenue from various segments, including mobile services, fixed-line broadband, and business solutions. The company, part of the Orange Group, serves approximately 3.5 million customers as of Q2 2023, showing a steady increase in its subscriber base.

In 2022, Orange Belgium reported revenues of approximately €1.65 billion, representing an increase of 3.3% compared to the previous year. The breakdown of revenue sources is detailed in the table below:

Mobile services are the largest contributor to Orange Belgium’s revenue. The company has seen a growth in postpaid subscribers, which accounted for 60% of its mobile customer base as of mid-2023. Average Revenue Per User (ARPU) in this segment stood at approximately €21.30 per month.

Fixed-line services have also been a focus for growth, with the number of broadband subscribers reaching over 600,000 in 2023. The company has been expanding its fiber-optic network, which enhances performance and attracts more customers. The fixed broadband ARPU has increased to €40 per month.

In terms of operational efficiency, Orange Belgium reported an EBITDA of approximately €510 million for 2022, yielding an EBITDA margin of 30.9%. The company’s capital expenditures were around €200 million, primarily focused on network upgrades and expansions.

Orange Belgium is also engaged in providing Business Solutions, which includes cloud services and IoT solutions. This segment generated about €150 million in 2022. The increasing demand for digital transformation services has bolstered this area significantly.

Moreover, Orange Belgium has been active in introducing new value-added services, including mobile banking and cybersecurity solutions, to diversify its revenue streams. These initiatives are expected to contribute approximately €50 million to overall revenues in 2023.

The competitive landscape remains challenging, with key competitors like Proximus and Telenet vying for market share. Nonetheless, the strategic focus on customer experience and service diversification aids in maintaining and growing its market position.