Belgian telecommunications group Proximus has improved its forecasts for 2024, announcing on Monday that the recent acquisition of Indian platform Route Mobile will double the company's predicted profit growth for this year.
Last month Proximus Group completed the acquisition of a majority stake in Route Mobile, an Indian cloud communications company, in a deal worth close to €650 million.
Proximus has said that acquiring Route Mobile marks a "pivotal moment" for the Group's international expansion plans, as the Indian platform already handles more than 1.5 billion monthly transactions and is exposed to fast growing markets.
Last year, Proximus' international segment (including Route Mobile) generated €1.9 billion in revenue, and earnings before interest, taxation, depreciation and amortisation (EBITDA, a measure of profit) of €180 million.
By 2026, the Group expects its three international brands (BICS, Telesign and Route Mobile) to bring in annual revenue of between €2 billion and €2.5 billion, with a direct profit margin of between €600 million and €650 million.
Guillaume Boutin, CEO of Proximus Group, said the acquisition of a majority stake in Route Mobile is a "game changer" for the Group's global plans.
"Driven by our unique position and powerful differentiators, we want to connect, engage and protect digital communications for our customers and deliver significant value for the Group. I am very confident in our ability to deliver on our growth ambitions and very excited to work towards the future success of the Group, together with our talented teams across the globe," he said.
In light of the acquisition of Route Mobile, Proximus has upgraded its guidance for this year, with the company doubling its forecasted profit (EBITDA) growth from "up to 1%" to 2%.
Specifically for its international operations, Proximus Group said it expects its direct profit margin to show mid-to-high single digit growth this year.
Proximus Group provides mobile, internet and television services under a number of brands (including Proximus, Scarlet and Mobile Vikings), and is 53% owned by the Belgian State. The Group reported revenues of just over €6 billion last year.
