Proximus Cuts Dividend in Half Under New 2025 Plan; Reducing FVE to EUR 14.00

Narrow-moat Proximus cut its dividend in half from 2024 onward under its new midterm strategic plan. From 2024 shareholders will be entitled to a EUR 0.60 dividend per share compared with EUR 1.20 previously. The 2023 dividend will be maintained at EUR 1.20 per share. Although management found nice words to justify the dividend reduction, the reality is free cash flow generation did not cover Proximus’ dividend. We have long said that Proximus’ shareholder remuneration policy is weak, with dividends being partially financed by debt and not maintainable over the long term. The new dividend level is more realistic and covered by free cash flow, although it still leaves very little room for debt reduction.