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Orange Belgium Reports Significant Earnings Improvement

Orange Belgium sees positive turnaround with a net profit of 17.2M euros in fiscal 2024, up from a loss of 10.8M euros. This growth may indicate strengthening fundamentals and put upward pressure on stock prices.

Date: 
AI Rating:   7

Earnings Improvement: Orange Belgium Group reported a net profit of 17.2 million euros for fiscal 2024, a significant improvement compared to a loss of 10.8 million euros in the previous year. This shift from loss to profit is a strongly positive indicator for investors, suggesting improved financial health and stability.

Profit Per Share (EPS): The profit per share rose to 0.33 euros from breakeven last year, marking a clear gain and offering a favorable outlook for shareholder value.

Revenue Growth: Total revenues reached 1.99 billion euros, higher than the 1.75 billion euros reported in the previous fiscal year. This 13.71% growth underscores the company's ability to generate more income, potentially leading to a favorable investment sentiment.

Operating Profit: Operating profit or EBIT increased to 118.9 million euros from 78.8 million euros, further supporting a bullish outlook. Higher EBIT reflects efficient management and operational improvements.

Future Guidance: For fiscal 2025, the company is targeting EBITDAaL between 545 million euros and 565 million euros, which indicates stable future earnings potential. This guidance may instill confidence in investors, leading to increased interest in the stock.

However, it is important to note that the Orange Belgium Board has decided not to propose any dividend for fiscal 2024. This could be perceived negatively by income-focused investors, potentially impacting the stock price temporarily.