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Edited Transcript of PROX.BR earnings conference call or presentation 25-Oct-19 12:00pm GMT

Q3 2019 Proximus NV Earnings Call

Brussels Oct 31, 2019 (Thomson StreetEvents) -- Edited Transcript of Proximus NV earnings conference call or presentation Friday, October 25, 2019 at 12:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Guillaume Boutin

Proximus PLC - Chief Consumer Market Officer

* Nancy Goossens

Proximus PLC - Director of IR

* Sandrine Dufour

Proximus PLC - CFO & Interim CEO

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Conference Call Participants

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* Alexandre Charles-Edouard Roncier

Exane BNP Paribas, Research Division - Research Analyst

* David Vagman

ING Groep N.V., Research Division - Research Analyst

* Emmanuel Carlier

Kempen & Co. N.V., Research Division - Research Analyst

* Guy Richard Peddy

Macquarie Research - Head of Telecommunications, Media, and Technology

* Michael Bishop

Goldman Sachs Group Inc., Research Division - Equity Analyst

* Nayab Amjad

Citigroup Inc, Research Division - VP

* Nicolas Cote-Colisson

HSBC, Research Division - Head of European Telecoms Equity Product, Telecoms, Media and Technology

* Ruben Devos

KBC Securities NV, Research Division - Senior Financial Analyst

* Shavar Raid Halberstadt

New Street Research LLP - Communication Services Associate

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Presentation

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Operator [1]

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Good afternoon, ladies and gentlemen, and welcome to the Proximus Q3 2019 Results Conference Call. For your information, this conference is being recorded.

At this time, I will now turn the call over to Mrs. Nancy Goossens, Director of Group Investor Relations. Madam, please go ahead.

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Nancy Goossens, Proximus PLC - Director of IR [2]

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Thank you. So good afternoon, ladies and gentlemen. Thank you for calling in. I trust you have all received the results released this morning and that you have been able to go through the numbers. So for this call, we will keep the usual format with most of the time reserved to answer your questions.

I have here with me Sandrine Dufour, CEO ad Interim; and as well as other members of the Executive Committee. We will be happy to take your questions in a moment. But before we get to that, we will start with an introduction by Sandrine. Please go ahead.

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Sandrine Dufour, Proximus PLC - CFO & Interim CEO [3]

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Thank you, Nancy. Good afternoon, everyone. Welcome to our third quarter conference call.

As you could read in our announcement this morning, we managed to keep a positive customer momentum with our customer bases for Internet, TV and mobile postpaid growing further in the third quarter. We achieved this in a market which is increasingly challenging from a competitive point of view. Our segmentation and convergence approach continued to provide good support. We have further built on this, for example, by revamping our millennials offer, Epic combo. Our second brand, Scarlet, maintained a strong position in the segment of price-seekers, and saw a good traction of its repriced Internet-only offer, which now comes at EUR 32.

Through the no-frills offers from Scarlet, we answer the needs of customers that are looking for the cheapest offer in the market while preserving our premium brand. The convergence rate of our customer base, i.e., customers taking both fixed and mobile services, has further improved, thanks to the traction of our triple and quad-play offers. This was driven by enticing more families and small enterprises to our all-in offers, Tuttimus and Bizz All-in; and also, an increasing number of customers signing up for our triple-play offers, Minimus and Epic combo, which both having an average revenue per household largely above average.

On the Enterprise side, the competitive intensity remains very high. We also continued to face the erosion of legacy services, however, softened by a growing point-to-point fiber product. We were, once again, able to further grow our mobile customer base, maintaining our strong position. The tough pricing environment in the enterprise mobile market is, however, reflected in the lower ARPU. We also managed to keep our Internet base fairly stable in spite of the competitive activity in this area. On the ICT front, the third quarter revenue was rather stable. In line with our strategic focus, we saw a favorable evolution in high-value professional services while revenue from legacy infrastructure products decreased.

All in all, the domestic revenue was 1.8% down from the prior year. The low-margin terminal revenue excluded, about half of this was related to regulatory effects with the international calling rates now having a full impact on the quarter. Thanks to the progress made on our digital journey, we realized further cost efficiencies in our domestic operations. The higher costs related to the ICT acquisitions we did in 2018 has now annualized and hence, make our cost efficiencies more visible.

For the third quarter, our good cost control, thanks to our shift to digital strategy, has led to a slight positive domestic EBITDA evolution compared to 2018. BICS, the international carrier service segment, saw another strong increase in the A2P volume supported by TeleSign. The direct margin of BICS was up year-on-year with the progressive in-sourcing of services by MTN having so far only a limited impact. This is rather a timing effect, so we expect this to further build up over the next quarters. The CapEx level over the first 9 months remain in line with our full year expectations.

Our investments included, amongst other things, the further development of digital platforms, the ongoing upgrade of our transport network, investments in mobile to continue to guarantee top quality for our mobile customers and includes, of course, also the ongoing deployment of our fiber network.

For so-called brownfield fiber, which we'll be deploying in 12 Belgium cities, while we continue to deploy greenfield fiber across the country, our pace of fiber deployment has increased significantly compared to last year, growing about 3x as fast. And our current fiber plan foresees an even faster rollout next year. To ensure the operational capability to support this, we have now signed up a third consortium.

The free cash flow of the quarter came in strong, bringing us to a year-to-date free cash flow of EUR 517 million, acquisition cash out excluded. And note that part is related to a positive timing element on tax payments so the full year free cash flow should not be too far from our initial expectations.

Looking at the remainder of the year, we will continue to execute upon our shift to digital strategy. In this challenging market, we will keep focusing on further attracting new customers, driving convergence further in our customer base and continue to focus on improving our cost structure. We will finalize the mobile access network sharing agreement with Orange Belgium. And regarding the company's transformation program, we have the intention to finalize the negotiations with the unions before the end of the year.

With this, I have covered my introduction and propose we now start with your questions.

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Questions and Answers

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Operator [1]

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(Operator Instructions) We have one first question from Mr. Nicolas Cote-Collison from HSBC.

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Nicolas Cote-Colisson, HSBC, Research Division - Head of European Telecoms Equity Product, Telecoms, Media and Technology [2]

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I've got two questions, one on business. I was wondering how concerned you are about the naked broadband bundles in the market. Obviously, it's not going to attract 100% of the households long term, but if you believe in the 1/3 addressable market, there might be some more headwinds to come against your TV base. So I wonder what is your view on this. And given the EBITDA at risk, how do you see -- actually, do you see extra or new type of revenues to come into medium term to offset this rather than just the cost cutting?

And my second question is about governance. Is there a deadline for the Board to decide on the CEO role? And also to you, Sandrine, has the Board asked you anything different or -- on top of what Dominique was asked to deliver by -- previously?

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Guillaume Boutin, Proximus PLC - Chief Consumer Market Officer [3]

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Guillaume speaking. On your first question, Nicolas, I think that you might refer as well on the net-add growth on TV that we posted this quarter that are indeed a little bit soft. It's, of course, an evolution that we are really clearly monitoring with a strong attention with the team.

Maybe let me comment on the evolution of the quarter, and then I'm going to comment on the long-term view. Main reason for this performance this quarter, if you compare to Q2 performances, there is a seasonal effect in the -- due to the intake, higher intake of student-customers mix during the summer. Versus Q3 last year, there is also the success of our revamped 1-piece Scarlet offer that got very strong commercial focus after the launch this summer.

If I look at -- going forward, if I look at the remaining of the year, so it's not yet long term, but we expect a better TV mix in Q4, supported by the strong commercial focus on convergent products during the Christmas period. And this is both on Proximus and Scarlet brands. But for sure, all the strategic plan that we put in place, as we speak, aim to stay and to keep a relevant place on the video/TV/gaming space as demonstrated with the successful launches of Pickx in June and Epic combo in October. And you may know as well that this strategy will also be supported by the launch of our brand-new set-top box beginning of next year.

So for sure, we are putting a lot of strategic execution efforts in making sure that we're going to stay relevant in a broader place than just the TV segment as we are also trying to extend our reach beyond TV and also touching upon the gaming space as we -- as you saw on the -- with the Epic combo launch and the partnership we did with Shadow.

That's what I can say today. But of course, this is key for us to stay relevant in that space.

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Sandrine Dufour, Proximus PLC - CFO & Interim CEO [4]

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And Nicolas, on your question on governance, there's no deadline for the Board to decide on the CEO role even though they're very active and are currently searching the market on that. And the Board has given me a clear mandate as CEO ad Interim to continue with the team on the execution of our shift to digital strategy. So I think we are in the continuity on that front.

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Operator [5]

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Our next question is from Mr. Emmanuel Carlier from Kempen.

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Emmanuel Carlier, Kempen & Co. N.V., Research Division - Research Analyst [6]

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Three questions. One on Fiber-to-the-Home. So the decision to potentially accelerate Fiber-to-the-Home rollout, will that still be taken at the full year '19 results or could that be delayed a little bit? Because the analysis from the regulators is also taking longer than initially expected. And could you give maybe already a bit more color on what you intend to do?

Then secondly, on pricing. So given your KPIs, your customer additions are soft over the last 3 quarters, I would say. How does that make you think about pricing mainly on fixed?

And then thirdly, so we have seen a lot of news on VOO being potentially for sale. Yes, that would obviously be very negative for Proximus. How are you thinking about defending the very dominant market position you have over there?

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Sandrine Dufour, Proximus PLC - CFO & Interim CEO [7]

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So on your first question regarding the decision to potentially accelerate FTTH. Indeed, I -- well, I confirm the timing we have in mind to come back in February on this. We're still, as you know, working on all the elements that we had mentioned. One of them, as you say, has to do with the regulatory elements. We are hearing indeed that it takes a bit more time on the cable. But hopefully, by that time we have more visibility and then we'll see in February.

Pricing?

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Guillaume Boutin, Proximus PLC - Chief Consumer Market Officer [8]

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On pricing, I think today, as you know, we have the dual brand strategy, and we are managing our process structure in between those 2 brands, playing on promotional activities. By the way, the average, that is not the same for all the part of the countries and all the part of the -- and other different segments on the Proximus brand and playing on naked price on Scarlet without additional promotion. And we are quite satisfactory with the operational results that we did in Q2.

As you said and mentioned, it was a little bit softer in Q1, Q2, but we went back on track in Q3, especially on customer numbers, both on mobile and Internet. And in fact, we have had very, very good back-to-school momentum. As you know, in Internet, that will be partly materialized in your Q4 Internet net growth as there is still some delays in between the sales and the activation of the customers. And thanks to the promotional activity that you -- we have, as we speak, we plan to sustain this momentum throughout the Christmas period.

And important to note as well, so far, we do not see major changes in Proximus performances following the recent competitors' announcements. So I think that we remain quite confident with the current pricing and the current promotional activities, on our ability to deliver good commercial performance in Q4. Of course, this is also supported by the new communication plan that we launched, a new bundling platform. And as you can see also in the numbers, we're very, very accurate in performing chain management, especially on mobile.

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Sandrine Dufour, Proximus PLC - CFO & Interim CEO [9]

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And on your last question regarding the VOO sale process, of course, we are very vigilant on how this will evolve in terms of which type of shareholders will end up owning VOO, which can have a -- depending on which is the different impacts. In terms of competition for Proximus, I think it's a bit early to comment on this. I can only say that the longer it takes, potentially, the better for us.

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Operator [10]

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Our next question is from Mrs. Nayab Amjad from Citi.

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Nayab Amjad, Citigroup Inc, Research Division - VP [11]

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So Proximus' domestic revenue ex-terminal guidance is now at minus 1.5% versus previously stated nearly stable growth in 2H, depending on ICT revenues. What has changed since 2Q for Proximus to tweak their guidance down? Is this mainly ICT revenues? Are there any other reasons for this?

And my second question is on free cash flow generation, which currently covers the guided dividend of EUR 1.5. However, if Proximus was to raise the FTTH CapEx, dividend could be uncovered. How would you -- how should we view shareholder returns going forward? And what is your target on leverage?

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Sandrine Dufour, Proximus PLC - CFO & Interim CEO [12]

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So on your first question regarding the revenue guidance, I think the overall message here to understand on our revenue guidance is that we don't expect big changes in the trends in the last quarter of the year. As we had indicated in Q2, some parts of our revenues are more volatile, and that's indeed the ICT segment. There is, as we said, a time element to the ICT pipe of projects and we had said some revenue might slip into next year. And for some of it, we are rather sure that it will be for next year.

But there is also a link to mention, which is with the federal government formation, which, as you know, is not finalized in Belgium. And that has an impact that leads to some softer public sector revenue. You know that Proximus exposure to the public sector is quite high, and I would also add that what we see in the -- that the ICT infrastructure -- I'm not mentioning the ICT professional service, which are growing, but the ICT infrastructure is facing some pressure. That -- and so that's how you can explain the fact that in Q2, we were expecting an H2 close to minus 1.4%. Now it's close to minus 1.5%.

On your questions regarding free cash flow generation, we're confirming our ambition to deliver a free cash flow for the year that will cover our dividend that we had given in terms of guidance. And despite the fact that we are accelerating this year the FTTH CapEx, we are not giving guidance beyond this. We will come back in February in terms of guiding towards the dividend. I can only say that what we had said is that if we were to decide on fiber acceleration, we would use certainly as a priority, the very strong balance sheet we have, the fact that we have a very low level of leverage.

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Operator [13]

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Next question is from Mr. Alexandre Roncier from Exane.

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Alexandre Charles-Edouard Roncier, Exane BNP Paribas, Research Division - Research Analyst [14]

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I have a first one on fiber coverage. If you could just maybe tell us what's your current full fiber coverage in the country.

Then the second one on data usage that I saw was quite down sequentially. Obviously, it's still up year-over-year. But I was wondering if you could maybe give some color on the sequential seasonal impact over data usage.

And then lastly, I've seen in the press the recent interview of Mr. De Backer, your Minister of Telecoms. And I was wondering if you could give us more color on the recent discussion you've had with the government. It does seem that for the upcoming 5G auction, they are willing to maybe use the same model as France used last year, meaning free spectrum against increased coverage obligation. Any color on that and on your sentiment on the fourth entrant would be much helpful.

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Sandrine Dufour, Proximus PLC - CFO & Interim CEO [15]

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Okay. So on your first question of fiber coverage, we are not disclosing these elements. We're still in the first years of our rollout program. So we are still talking about small numbers, but at some point, we'll come back to you to provide you with more visibility.

On your second question, I think we'll come back to you on this because it's a trend that I have not -- I don't know if anyone -- Nancy, can you take this one?

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Nancy Goossens, Proximus PLC - Director of IR [16]

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Maybe an element to add on this one is don't forget that our data usage that we are providing is national usage. So it doesn't include roaming. So there's probably some seasonality impact to it as well with the holiday period where it moves more to roaming volume. So it's only national volume in there.

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Sandrine Dufour, Proximus PLC - CFO & Interim CEO [17]

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Okay. So on 5G, what we can say is that we are, of course, eager to deploy 5G as soon as spectrum is available. Today, we don't have full visibility on the timing when the spectrum auction will be done. What we can say as well is that -- is there are opportunities to contribute in the forms of further investment in exchange of the spectrum price. We're fully open to have such discussions with the government.

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Alexandre Charles-Edouard Roncier, Exane BNP Paribas, Research Division - Research Analyst [18]

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And any change perhaps on what you see in the government position is at both the federal and the regional level regarding the fourth entrant?

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Sandrine Dufour, Proximus PLC - CFO & Interim CEO [19]

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Well, on the fourth entrant, we don't have a lot of information on this. We understand that the risk is still there potentially, depending of course of who's going to be forming the future government. What we can say, however, is that well, we still very much claim that there is no room for a fourth player in the Belgian market. That since 18 months, you've seen that there has been an abundance of new offers in the mobile space with unlimited offers, with lower price. And so we think that the economic space for a potential fourth entrant has decreased.

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Operator [20]

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Next question is from Mr. Ruben Devos from KBC Securities.

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Ruben Devos, KBC Securities NV, Research Division - Senior Financial Analyst [21]

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Regarding the transformation plans, I believe it was said that you would start negotiations with the union at the end of August and that the idea was to conclude talks before the end of the year. Just curious to hear whether anything has changed since August with respect to timeline, and with respect to your objectives of the plan. And related to this, it would be great if we could get some guidance on whether we should be expecting some of the benefits already coming through when we look at next year's forecast.

Then to come back on fiber, more of a general question, you said the potential acceleration in the fiber rollout would be furthered with the balance sheet potentially. But just wondering, what are sort of the arguments at this stage that would make you go ahead with an accelerated rollout? Or what sort of counter arguments would hold you back, aside from regulation, of course, from ramping up?

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Sandrine Dufour, Proximus PLC - CFO & Interim CEO [22]

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Okay. So on the transformation plan, what we said is that negotiations are ongoing and that we do have the intention to finalize the negotiation with the unions and with the mediators before the end of the year. We certainly want to remove the uncertainty that exists today on the employees within the company and be in a position to implement the various measures next year. I will not come back on the size and what we had said because I want to fully respect the current confidentiality, which surrounds the discussion with the unions. It's of utmost importance that we do not breach this considering the past events in September, and I will give full chances to the current negotiations.

Sorry, second question on fiber, yes. I'm not used to have to answer all questions, so that's why. So indeed, I will maybe remind everyone the way we look at it and how we are structuring our thinking on the fiber acceleration. What we have consistently said in the past that we were waiting to see the various KPIs that we are achieving with fiber on the NPS, the uptake, the win back, the ARPU uplift, customer satisfaction, churn, et cetera, and to make sure that we have enough relevant indicators which would give us the comfort to make the decision to accelerate. I must say that on these fronts, we observed very satisfactory element, both on the consumer and the enterprise markets. That's one aspect.

The second aspect we said has to do with our ability to not only ramp up capacity, but also make sure that we improve the effectiveness of our processes, so that we decrease our costs to connect and our unit costs. We had announced the targets in terms of achieving a certain unit cost. And on this front, we are making progress, but there's still a lot to be done, but we are making good progress. At least we see some opportunities to further control and decrease our unit cost.

And the third element has to do with regulation, which is something that I have already commented. And based on all these parameters, then we would make the decision.

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Operator [23]

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Next question is from Mr. David Vagman from ING.

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David Vagman, ING Groep N.V., Research Division - Research Analyst [24]

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First question on the fiber rollout, again, sorry to come back on this. My question is the following. Would the regulatory change for the new wholesale cable regulation that we see? Assuming it doesn't change, would this make you more open to co-investments? And what type of co-investment could we see? Could we -- could you be ready to consider?

Second question on cost savings. So you've been saying in the -- let's say, in the press release that you are somewhat softer on cost savings. What is actually driving the speed of these cost savings? Is it new initiatives? Is it faster execution? And what is exactly going faster?

And then last question, so third question, could you comment on the ARPU trend for triple-play offers on the kind of -- and dual play? Is it Scarlet impacting the needs? Is it low level of burden expense?

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Sandrine Dufour, Proximus PLC - CFO & Interim CEO [25]

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Okay. So on your first question, I wouldn't link the wholesale cable regulation with the opportunities for co-investments. I will repeat what we said on the fact that potentially they are -- low wholesale cable prices is not a good signal that the regulator is sending. It's basically sending a message where you would plan to favor renting the network rather than investing and building in a new network. And this is where, as we consider the cable and the fiber space being -- from the point of view of the customer, being the same broadband market, we don't think it's the right signal to send, but I wouldn't link this with the co-investment question.

And on your second question related to cost savings, what we have seen in Q3 are honestly very nice benefits from a series of measures that we've been taking over the past years on the customer experience, on migrating our customers on 1 single mass-market IT stack. We're close to finalizing this on the deployment of some digital service interface to our various agents.

And all of these initiatives have materialized into a quite strong decrease of the number of calls to our call center. So a decrease of such, I would call them, physical interactions. So really materializing the benefits of our shift to digital strategy. And so in that sense, combined, we're probably better disciplined in terms of hiring in the current context. We've delivered a somewhat better OpEx savings.

So with this, we're confirming our global ambition for the full 3-year plan that we had announced from the EUR 240 million. But to your questions, are there new initiatives? It's an ongoing process. There are always reflection in terms of finding what are going to be the new initiatives, and I can just name the one of the mobile network sharing. As you know, the benefits of such initiatives will come beyond the horizon of the 3-year plan.

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Guillaume Boutin, Proximus PLC - Chief Consumer Market Officer [26]

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On your question on ARPU, at the customer side, what is very important to note is that the average revenue per home is still growing quite nicely, growing by 1.7% year-over-year. And the growth is supported by increased RGU per home but also an increased favorable tiering on our mobile customers.

Indeed, what you can see looking at the more precise evolution per play, you can see that 4-p net customer growth is softer this quarter, but largely compensated by the positive evolution of our 3-p convergent customers, both generating very high average revenue per home (inaudible) per month. So this is what we are really monitoring as this is high-value mix within our customer base that is generating the growth of our average revenue per home.

If I come back also on the revenue evolution, which is today fully explained for Q3 by terminals, inbound and regulation. And the first 2 elements, i.e., terminals and inbound revenue, have no impact on margin. The regulation impact at the revenue level for consumers amounted to almost EUR 5 million, which is twice the amount of the previous quarter. And if you go back to the direct margin level, at the direct margin level, we managed to grow slightly our customer business direct margin if you exclude this impact of regulation.

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Operator [27]

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Next question is from Mr. Michael Bishop from Goldman Sachs.

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Michael Bishop, Goldman Sachs Group Inc., Research Division - Equity Analyst [28]

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Just two questions, please. Firstly, okay, similar question on ARPU to the previous question, but on the mobile consumer postpaid ARPU. It's still declining even if you strip out the impact from the international call regulation. And I would have thought that given you potentially got a more accretive spin-up effect as people start to use higher bundle tariffs, including unlimited at just over EUR 40, that the ARPU should have stabilized now or could stabilize going forward. So it'd be good to get some color on that and how you see that progressing.

And then secondly, on free cash flow, could you just give us a sense of where you think the cash tax and the working capital will end up for the full year '19?

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Guillaume Boutin, Proximus PLC - Chief Consumer Market Officer [29]

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On mobile postpaid consumer ARPU, first, one thing important to note is if you look at the 1-p mobile postpaid ARPU, this one is growing, thanks to higher tiering. And then you have the ARPU within the batch, which is a less difficult element to analyze. But if you look globally at the mobile postpaid ARPU, if you exclude regulation and if you exclude inbound with no impact on margin, then you have an ARPU mobile postpaid which is evolving on the right directions. So growing.

On the question on the higher bundles, 1 year after the launch of our unlimited offer, we have now fully recovered the effect that we had on the first months on the out-of-bundle decrease. And now we are back to the trends of last year in terms of out-of-bundle growth for our mobile customers. So we have been able to fully compensate it, thanks to higher tiering and evolution of the behaviors of our customers, the impact of the (inaudible) unlimited on out of-bundle ARPU.

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Sandrine Dufour, Proximus PLC - CFO & Interim CEO [30]

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Okay. So on your question on free cash flow, we're not providing the detailed granular components of free cash flow. I just want to reiterate that it's -- for the full year, it's still in line with our projection. Don't expect to see a lot of cash flow generation in Q4. There are timing elements with tax, and that's all the elements that we can highlight.

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Operator [31]

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Next question is from Mr. Guy Peddy from Macquarie.

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Guy Richard Peddy, Macquarie Research - Head of Telecommunications, Media, and Technology [32]

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Just going back to this fiber issue, you mentioned about trying to -- or still targeting your unit cost for rollout. If my memory serves me right, you were looking at about EUR 1,000 unit cost rollout, and that was including connection costs. So firstly, is that still the right number?

And secondly, on the build process, I'm sure that actually the unit cost of building fiber will come down, the greater you actually roll it out. So can you actually give me numbers, for example, like what is your rollout rate at the moment? And what you expect it to be in 2020 when you have a faster rollout target?

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Sandrine Dufour, Proximus PLC - CFO & Interim CEO [33]

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So on the unit cost fiber, we recently said that we were not achieving yet this target and that this target was something which was -- over the next month but we're working towards it. I think it's important to understand that it's an average. And actually, this average can have very, very different level depending on where you're building. The key components that can have an impact on the unit cost have to do with the density, have to do with how many -- how you can deploy on facades, on the houses where there's trenching; and these elements can have quite different impact.

So to your point, in terms of looking at the unit cost as we build up forward, there's certainly an element of scale and efficiency and learning curve, that's for sure, and that we are working on in terms of improving our processes. But at some point in time, there would be also a question of moving to lower-density areas where we know that we will have to face potentially more trenching than facade.

So all these components are playing and having an impact on the unit costs. And just keep in mind that it's a constant effort to find the ways to decrease it and to industrialize it. And here or there, we're considering that we still have some space to do so.

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Operator [34]

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Next question is from Mr. Shavar Halberstadt from New Street Research.

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Shavar Raid Halberstadt, New Street Research LLP - Communication Services Associate [35]

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Quick question. How do you view the risk of your network share with Orange attracting antitrust action? Because the Czech Republic shares some characteristics in the sense that it's a 3-player market where the 2 sharing parties have the majority of the mobile market share. So your take, please, on how you evaluate that risk.

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Sandrine Dufour, Proximus PLC - CFO & Interim CEO [36]

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So on the mobile network sharing, we are confident that it's compliant with regulations. I think we're well aware on the Czech Republic decision of statements from the commissioner. I don't think it's a fully final decision. It might take time. But I think every situation is very specific, and we see that there are some differences in the current situation versus the Czech Republic one. So still confident on the regulatory outlook and vital statistics.

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Operator [37]

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(Operator Instructions) We have no other questions.

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Nancy Goossens, Proximus PLC - Director of IR [38]

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Since there are no more questions, I think we can end the call with this. Should there be any follow-up questions, you can obviously contact the Investor Relations team. Thank you very much and have a very nice weekend.

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Operator [39]

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Ladies and gentlemen, this concludes the conference call. Thank you all for your participation. You may now disconnect.