Belgacom sees regulatory cap in 2011, same dividend

Belgium’s dominant telecom operator Belgacom (BCOM.BR) forecast regulatory pressure would hit 2011 by about the same amount as last year, although it should be able to maintain its dividend.
The company, with a market capitalisation of some 9.2 billion euros ($12.69 billion), said on Friday it would buy back up to 200 million euros of shares this year and next.
Belgacom, which owns Proximus, Belgium’s largest mobile phone operator, said that in 2011 core profit would decline by up to 2 percent, due to regulators demanding lower charges for using mobile phones abroad and routing mobile phone calls.
Revenue would be up to 1 percent lower.
Belgacom said that it would pay out a gross dividend of 2.18 euros per share and expected to be able to do so again on 2011 earnings.
Belgacom results for 2010 were skewed by the consolidation of South African MTN’s international carrier services business, which Belgacom acquired in 2009.
Revenues grew by 10.2 percent, although fell 0.6 percent on a like-for-like basis.
Core profit before non recurring items for 2010 rose 1.5 pct year-on-year to 1.984 billion euros, slightly above the average 1.965 billion forecast by a Reuters consensus of 16 analysts.
On a like-for-like basis, it fell by 1.3 percent.
The former state monopoly said that revenues of its consumer unit fell by 1.9 percent. Income from fixed-line and mobile phone calls declined, outweighing a 36 percent gain from its digital television service and more from data traffic.
The group said that almost half of the customer base now subscribed to more than one product.
Revenues also fell 3.2 percent in the enterprise business unit, serving businesses, where the group also had to lower mobile phone rates.