Proximus SA (BGAOF) Q2 2025 Earnings Call Highlights: Strong Domestic Growth Amid Global Challenges

The Belgian Telecom Giant’s Resilience in a Volatile Market

Let’s be real—Proximus isn’t just another telecom company. It’s a Belgian powerhouse navigating a global market that’s about as stable as a 3G connection in a tunnel. Q2 2025 showed us that while the world’s economy is running on shaky infrastructure, Proximus is doubling down on its domestic game, investing in fiber and 5G like a Silicon Valley startup chasing the next big IPO.

But here’s the catch: while Belgium’s telecom scene is thriving, Proximus’ global operations are facing headwinds that would make even the most seasoned trader sweat. Still, the company’s ability to balance domestic strength with global challenges makes it a fascinating case study in economic resilience.

Domestic Dominance: Where Proximus Is Crushing It

1. Mobile Postpaid Growth: The Numbers Don’t Lie

Proximus isn’t just sitting pretty in Belgium—it’s actively expanding. The company gained 36,000 Mobile Postpaid cards in its Residential unit, proving that Belgian consumers still trust Proximus over cheaper, shakier alternatives. Meanwhile, the Business unit kept its Mobile Postpaid numbers stable, which is no small feat in a market where competitors are constantly undercutting each other.

This growth isn’t accidental. Proximus has been aggressively rolling out 5G coverage, now at over 80% across Belgium, and expanding its fiber footprint to 45% of homes and businesses—that’s 2.4 million homes and businesses by mid-2025. If that doesn’t scream “future-proof,” I don’t know what does.

2. Fiber and 5G: The Backbone of Proximus’ Strategy

Proximus isn’t just throwing money at shiny new tech—it’s building a sustainable infrastructure that will pay off for years. The company plans to keep its CAPEX envelope at €1.3 billion until 2028, ensuring that Belgium’s digital backbone stays ahead of the curve.

But here’s the kicker: CAPEX will drop after 2028, meaning Proximus is already thinking about cost efficiency while still investing in growth. That’s like a tech startup building a scalable product before worrying about profit margins—smart, but risky.

3. EBITDA Growth: Proof That the Strategy Works

The Domestic segment didn’t just grow—it thrived. Both service revenue and EBITDA saw year-over-year growth, showing that Proximus isn’t just expanding for the sake of it. The company is actually making money while doing so, which is more than we can say for some of its global competitors.

Global Challenges: Where Proximus Is Struggling

1. Proximus Global: A Mixed Bag

While Belgium is Proximus’ bread and butter, its international operations are facing headwinds. The company acknowledges that global markets are tougher to navigate, but it’s not throwing in the towel. Instead, Proximus is projecting a 20% growth in global EBITDA for the rest of 2025, which suggests that it’s streamlining operations and optimizing resources to stay competitive.

2. Cost Savings Initiatives: Necessary but Not Enough

Proximus isn’t just sitting back and hoping for the best. It’s actively cutting costs to offset global challenges. Whether this will be enough to keep shareholders happy remains to be seen, but the fact that the company is proactively managing expenses is a good sign.

3. Market Capitalization and Investor Confidence

Despite global challenges, Proximus’ market cap sits at €2.8 billion, and its year-to-date return is 49.31%. That’s not just good—it’s great. Investors seem to believe in Proximus’ long-term strategy, even if the global market is giving it a hard time.

The Bottom Line: Is Proximus a Buy?

Proximus is a company that’s strong at home but struggling abroad. Its domestic investments in fiber and 5G are paying off, while its global segment is still a work in progress. The company’s cost-saving measures and projected EBITDA growth suggest that it’s not just reacting to challenges—it’s actively working to overcome them.

For investors, Proximus presents an interesting opportunity. The undervaluation (according to InvestingPro Fair Value metrics) and strong domestic performance make it a potential long-term play, especially if the global market stabilizes.

But here’s the real question: Can Proximus maintain this momentum? The company’s CAPEX commitment is a double-edged sword—it’s necessary for future growth, but it also means short-term financial strain. If Proximus can balance investment with profitability, it could be a strong contender in the telecom space.

For now, though, the story is clear: Proximus is a resilient player in a volatile market, and its ability to adapt will determine whether it’s a short-term winner or a long-term champion.