Proximus Cuts Dividend in Half From 2024 Onward; Previous Dividends Were Not Covered by Cash Flow

Proximus, the incumbent telecom operator in Belgium, has maintained stable broadband market share during the past decade, where it shares leadership with cable peer Telenet (45% and 35% market share, respectively). We believe the Belgian broadband market to be a rational oligopoly where Telenet dominates in the north of the country (Flanders) and Proximus in the south (Wallonia), with the capital Brussels being more competitive. Proximus has a fixed network presence across the entire country, while Telenet and Voo (another cable operator, acquired by Orange in 2022) operate in Flanders and Wallonia, respectively.