Strong
growth in the Bevelgacom group 1995 financial results
During his meeting of 23 April 1996, the Board
of Directors of Bevelgacom made up the 1995
consolidated annual accounts. The General Assembly
is scheduled to take place on 12 June 1996.
The consolidated figures include Bevelgacom S.A.,
Bevelgacom Mobile S.A., a 75 % owned subsidiary, and
Bevelgacom Directory Services S.A. (BDS), a 80 %
owned subsidiary.
Turnover
In 1995 Bevelgacom generated a turnover of 127
billion BEF, representing an increase of 8,6% in
comparison with the previous financial year.
The increased turnover reflects the spectacular
development of mobility (+ 50,6%) as well as the
increase in national telephone service (+ 11,7%)
through the Integrated Services Digital Network
(ISDN), subscription fees and traffic between the
telephone and the mobile phone networks.
|
Group (in millions of BEF)
|
1993
|
1994
|
1995
|
Growth
in 94/95
(%)
|
|
National telephone
service
|
55,912
|
60,659
|
67,745
|
11.7
|
|
International telephone
service
|
22,358
|
20,506
|
19,766
|
(3.6%)
|
|
Mobility
|
5,883
|
8,210
|
12,367
|
50.6%
|
|
Terminals (1)
|
7,356
|
7,387
|
7,266
|
(1.7)
|
|
Other activities
(2)
|
19,429
|
20,268
|
19,995
|
(1.4)
|
|
Total
|
110,938
|
117,030
|
127,139
|
8.6
|
|
1. Includes
mainly the mobilophone services, the
paging service and revenues from pay
phones.
2.
Includes mainly leased lines, data
transmission, value-added services, VPN
and directory-related activities.
|
Breakdown of 1995
Turnover
Operating Cash
Flow
The operating cash flow rose to a high level,
reaching 51,8 billion BEF. This represents 40,8% of
revenues for the fiscal year, or an increase of
14,3% in comparison with 1994.
Given the creation of the Pension Fund in 1995,
cash flow will no longer take pension provisions
into account as in the past. From now on, for
purposes of comparison, the data for previous years
have been restated.
Operating
Profit
Operating income amounted to 20,5 billion BEF,
an increase of 28% in comparison with 1994.
This rise in profit is the result of the
substantial increase in turnover accompanied by a
decrease in write downs and other operating
charges.
Creation of the Pension
Fund
The Pension Reserve line item is affected
significantly by the recovery and transfer of this
amount in full, to the Pension Fund for a total of
46 billion BEF. This Fund manages the retirement
pensions of the statutory personnel of Bevelgacom.
The total estimated amount of liabilities
computed on service to date as of December 31, 1995
(including projections of future wages) is 154
billion BEF.
19 billion BEF in pension-related costs were
paid out of 1995 profits. These amounts are
recovered in the line item "Personnel Costs".
|
in millions of
BEF
|
1992
|
1993
|
1994
|
1995 -
continuity (1)
|
1995 -
creation of the Pension Fund
(1)
|
|
Charge in Income Statement
|
|
|
|
|
Pensions paid
out
|
5,506
|
6,022
|
6,067
|
6,163
|
(2)
5,921
|
|
Pension
provision
|
4,500
|
11,614
|
12,600
|
12,956
|
(32,768)
|
|
Pension burden
|
0
|
0
|
0
|
0
|
45,966
|
|
Total
|
10,006
|
17,636
|
18,667
|
19,119
|
19,119
|
|
On Balance Sheet (12/31)
|
|
|
|
|
Pension
provisions
|
8,554
|
20,168
|
32,768
|
45,724
|
0
|
|
1. In order to
make a comparison with previous years, the
continuity scenario assumes that the
Pension Fund was not created.
2.
The Pension
Fund paid already a portion of the
December 95 pensions (242 million
BEF).
|
Financial
Charges
Financial charges continued to decrease,
dropping from 7,4 billion BEF in 1994 to 6,5
billion BEF in 1995. This is related to the drop in
interest rates, to the use of new financing methods
and continued efforts at improving the company's
financial structure (7,3 billion BEF reduction in
financial debt).
The improved financial structure is illustrated
by the table below:
|
in millions of
BEF
|
1992
|
1993
|
1994
|
1995
|
|
(A) Equity
|
35,407
|
44,465
|
54,406
|
64,353
|
|
(B) Financial
debt
|
105,644
|
103,903
|
98,328
|
91,050
|
|
Solvency ration
(B/A)
|
3.0
|
2.3
|
1.8
|
1.4
|
Profits
on ordinary activities before taxes
Profit on ordinary activities before taxes shows
a significant increase of 59,3%. The increase in
operating income is bolstered by a net improvement
in financial results.
Extraordinary
Results
The extraordinary charges of 1,6 billion BEF
include mainly provisions in the amount of 1,1
billion BEF to cover the portion Bevelgacom is slated
to fund on behalf of AirTouch in the financing of
the mobile phone service license. Extraordinary
depreciation was also authorized on the mobile
phone installations given the decision taken to
replace it faster than initially foreseen.
Net Profit (group
share)
The net profit for the year 1995 reached a
record level of 10,7 billion BEF, representing a
10% increase in comparison with 1994.
Extraordinary losses in 1992 are due to a change in
the valuation rules.
Investments and free cash
flow
Bevelgacom is one of the principal investors in
Belgium. Investments by the Bevelgacom group totaled
44 billion BEF. This includes 9 billion BEF for the
mobile telephony license. This is a conservative
estimate before a decision is taken.
|
in millions of
BEF
|
1992
|
1993*
|
1994
|
1995
|
|
Networks and
installations
|
21,895
|
29,574
|
27,707
|
28,316
|
|
Real Estate
|
1,869
|
14,278
|
2,313
|
3,366
|
|
Shares held in other
businesses
|
123
|
58
|
143
|
80
|
|
Others
|
1,269
|
1,700
|
2,751
|
12,284
|
|
Total
|
25,155
|
45,610
|
32,914
|
44,046
|
|
* Higher level of investments in
1993 is the result of the acquisition of
the Bevelgacom Towers
(investment of 12 billion BEF), intended
to consolidate the general departments of
Bevelgacom into a
single building.
|
In spite of these large investments, in 1995,
the Bevelgacom group still had 3,1 billion BEF,
before cash flows, to repay its debts, as
illustrated by the table below :
|
|
Group (in millions of BEF)
|
1993
|
1994
|
1995
|
|
|
Cash flow from
operating activities
|
35,621
|
38,728
|
42,401
|
|
+
|
Change in working
capital
|
7,874
|
3,171
|
4,564
|
|
=
|
Net Cash flow from
operating activities
|
43,495
|
41,899
|
46,965
|
|
-
|
Investments
|
(45,610)
|
(32,914)
|
(44,045)
|
|
+
|
Sales of fixed
assets
|
172
|
669
|
164
|
|
+
|
Sales of shares of
affiliated companies
|
0
|
706
|
0
|
|
=
|
Free cash flow
before funding activities (available
balance)
|
(1,943)
|
10,360
|
3,084
|
|
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