Proximus PLC (PROX) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen, and welcome to the Proximus Q4 2020 Results Conference Call. For your information, this conference call is being recorded. At this time, I would like to turn the call over to Madame Nancy Goossens, Director, Group Investor Relations. Madame, please go ahead.

Yes. Thank you. We will start this call with some slides from the CEO, Guillaume Boutin. The first part is what you received actually in the deck this morning. So after the introduction, we will go to your questions. For the Q&A session, we have here also Katleen Vandeweyer, the CFO, [ AI ]; Jim Casteele, the Chief, Consumer segment; we have Anne-Sophie Lotgering, the Chief of the Enterprise Segment; Geert Standaert, the CEO; Dirk Lybaert, the Chief, Corporate Affairs; and Matteo Gatta from BICS. They will take your questions in a moment. But before we get to that, Guillaume, please start with your introduction. Thank you.

Thank you, Nancy. Welcome, ladies and gentlemen, and thank you for joining us on this Q4 conference call. If I go to the next slide, when looking back on 2020, we cannot stand still for a moment on how exceptional this year has been. During the pandemic, the telecom industry more than ever has shown the vital role it plays in modern society. We have kept people and businesses connected every day. Increased calling and the massive number of video meetings have boosted the traffic networks. The sanitary crisis has accelerated digital adoption across all domains and age groups, opening up new opportunities for e-commerce, educations and many other domains. The increased need for connectivity has also pushed the growth up in the Belgium Internet market. Now moving to Slide 3. And Proximus, as a large Belgium company, we were very serious in taking up our societal role. We have launched several initiatives to support our customers, and the specific actions we took for the most affected industries like education, hospitals, culture and health care are still ongoing. Now moving to the next slide. And it's within this sanitary crisis we have been building on our growth strategy. We launched many initiatives and achieved good progress in our key strategic pillars. We have listed on this page a number of examples around our networks, around our digital transformation, around also the diversification of our activities. And also on the commercial portfolio return that, as you can see in a few minutes, generated quite a traction on the customer numbers. But we have communicated though these topics before, some even quite recently. So I will not take you through all of them. But looking at this non-exhaustive list, it's, however, clear that we have been taking meaningful steps in executing our strategy and are preparing the path to return to growth as of 2022. Before -- and next slide now, before turning to the more financials and operational results, I'd like to highlight some achievements in the sustainability domain I am particularly proud of. Our climate deserves our greatest attention. Here in Belgium, we had probably the warmest weeks of history for a month of February. And global warming has become a reality and we have to deal with. For Belgium, Proximus has an important role to play in reconciling the digitization of our economy with these environmental challenges we are facing. We have set the Board a vision to make a net positive contribution to a net zero planet, and this, by 2030. To get there, we need to do more goods and less bad for the environment. Meaning that we need to enable our customers to reduce their carbon footprint through our products and services. This is the Scope 4 on the right side of the slide. At the same time, we also need to do less bad, meaning we need to act upon our total carbon footprint -- carbon footprint, sorry, which includes our own direct and indirect emissions, so Scope 1 and Scope 2, as well as our indirect emissions throughout the value chain, so Scope 3. I truly believe we have an enabling role to play towards society by providing products and solutions that can reduce our customer carbon footprint. We work together with them to develop innovative solutions, enabling the decarbonization of our customers' footprint. As such, we can help make positive changes for the climate outside our own value chain. Turning to the next slide for some achievements. We are proud to have met in 2020 our carbon footprint objective that we set for 2025. We have reduced our emissions by 105 kilotons. While the conditions were obviously quite exceptional, this acceleration proves that here, real change is within reach. At the same time, our footprint clearly shows we already strongly reduced our own emissions over the last decade. Our ambition is to go beyond our own operations to support our customers, as I said, and suppliers in embracing more sustainable habits. To that extent, we have developed our circular manifesto. This is a commitment of -- this is the commitment of Proximus and the supplier to collaborate in the implementation of projects and initiatives in order to design together sustainable products. We aim to continue the good trend and still on track towards making a net positive contribution, which is a very bold objective to a net zero planet by 2030. Now moving to the next slide. As a telco, we have an enabling role to play in the unification of our society, as I said. Products and solutions that will enable the enterprise and public sector to decarbonize the footprint are, for example, and to be a little bit more concrete, a smart packing app that saves our customers time and fuel, which cuts back CO2 emission; traffic management systems that track the emission of company cars and optimize their usage; audio and video conference tools to avoid traveling and especially flying; monitoring devices for efficient energy consumption; IoT solutions such as smart buildings, smart city, smart agriculture, to enable better energy management; and so on and so forth. Besides the work being done for B2B, we also need to create awareness amongst consumers on how to improve the carbon footprint in their daily life. By teaming up with the economy, we have kicked off the creation of an ecosystem of like-minded companies with the ambition to empower our consumers to make them aware of the daily carbon impact. The first objective is to help raise awareness about the urgency of climate change and have shared responsibility to act. Proximus and the economy will start by offering Proximus customers digital tools to track their carbon footprint. The second step is to enable them to opt for more sustainable-only lifestyle. We are the first telco player in the world to team up with the economy and to engage our customers in climate action. Now moving to the next slide. We have set to ourselves the ambition to become truly circular by 2030 and are gradually saying goodbye to the current economic system of take, make, waste. The circular economy is based on the idea of no longer eating up raw materials, but extending the life span by reusing, repairing and recycling them. We have been collecting and refurbishing modems and decoders since 2014. We are granting a second life to 90% of all devices, which corresponds to 2 million refurbishments. 489,000 devices have been prepared for a second life in the course of 2020, and we ambition to do even slightly more in 2021. One material we have been recovering on a grand scale is copper. In 2020, 994 tons of copper were recovered. That is because we are gradually replacing our copper networks with a fiber network, and we'll come back to that. And we are in the process of outphasing certain buildings. 2020 was a rather exceptional year as we outphased 2 large buildings, which explains why we have a low objective for 2021. As -- on this slide as well, I'd like to mention the Don't miss the call initiative, which is a large campaign to raise awareness about phone recycling and to motivate people to return their old devices. The valuable and increasingly scarce raw materials can be reused in new phones. Our goal was to collect 100,000 phones in 2020 but then COVID interfered with these plans. Nonetheless, we still collected 65 (sic) [ 65,000 ] phones, which is an amazing performance over the last past year. And we are extending the campaign in 2021 with the objective to collect 150 (sic) [ 150,000 ] units in this year. Going to the next slide, and let me turn for a moment to our financial and operational results. And as first on the word, on the operational results with the customer growth of the group and -- which is quite solid despite challenging circumstances. I'm now on Slide 10, that is showing that over the past year, we have kept a strong commercial momentum in a very competitive setting, growing our core customer base with a specific focus on value customers, as you can see in the very nice trend that we have on TV customers. So I'm very especially pleased that we have been able to show a very nice improvement from the growth we had achieved in 2019. And this is true for all our core 3 -- our 3 core products that we are putting in the market. And we have achieved these good results for a number of reasons. First, we are benefiting from the effort that we have done in terms of network investments. The high-quality was proved during the confinement and lockdown with our networks rolling up very well in spite of the steep increase in usage. Besides our networks, we offer TV customers with fixed wide variety of content. We are, for the moment, the only one to really showcase Disney+ for our preferred customers. And we continue to play a content aggregator role. As the last point, what's having a very good contribution to our customer acquisition are the offers that we have launched on the market. We see for the Proximus brand a very, very strong commercial traction for the new convergent offering, Flex, that we have launched on the first of July 2020, while our Scarlet brand continues to thrive in the market for not -- for cost-conscious customers. Moving to the next slide. With this very nice traction for Flex, we have ended 2020 with 317,000 subscribers for the Flex offer. This success is also driving an increase in our convergence rate, now reaching 60% of all multi-play customers. Flex is also driving a higher number of multiple -- multi mobile customers and hence, leading to positive impact on the RGUs, and therefore, on the average revenue per customer, which is for the fourth quarter, up by 1.5%. Moving to the next slide. What is more is that with the rollout of our fiber network and with the acceleration of this rollout, we also start to see the positive effect of customers standing up for fiber. In 2020, we had a total of 65,000 fiber customers within our consumer segment. As we continue and accelerate the coverage, we see more and more customers coming on the fiber network. And now going to the Slide 14. Taking a look at our business segments. As you know, the sanitary crisis has made the economic environment quite challenging. And in this setting, the enterprise segment has shown quite good resistance in terms of volumes, keeping good growth in its mobile base and keeping its Internet base fairly stable. This in spite of competition on the Belgian market, which is heating up for the enterprise segment. The competitive pressure is mainly shown in the mobile ARPU trend, which, besides the effect of COVID-19 on roaming, is also reflecting some ongoing pricing pressure. Now moving to the next slide. ICT was also, of course, exposed to the sanitary situation and the impact of the economy. But while there was, for sure, exposure, all in all, the ICT revenues are still headed pretty well in 2020, showing small growth from the prior year and now representing 40% of our renewal revenues. In several key transformation areas, we are gaining traction, supported by 5G and IoT developments. Let's now take a quick look at the domestic revenues, and moving to Slide 16. So the domestic revenue for 2020 was down by 2.3%. The chart shows the main elements of this decrease. But the first 3 are, I would say, our core revenues being the revenue, telecommunication services and ICT from both our consumer and business segments. This includes the mobile revenues, which was significantly impacted by lower roaming traffic as a result of the COVID-related traffic decrease. And if we take out the roaming out revenue from both 2019 and 2020, you can see that the services revenues would have been up by 0.6% instead of the 0.6% decline. Another important driver of the domestic revenue decline was inbound revenue at low to 0 margin for us. And furthermore, roaming in and other product revenue, which included some temporary negative effects on a year-over-year comparison. This was for domestic revenues. We now have a look at BICS and TeleSign on the next slide. And as we have announced a few weeks back, we have acquired the full ownership of BICS. As a reminder, BICS as a company is, in fact, composed of 2 large activities, TeleSign and BICS stand-alone. And as we explained at the day of that announcement, TeleSign is a fast-growing leader in the digital identity space and in the programmable communications space. Its revenue grew, over 2020, by nearly 57%, driven by authentication and mobile identity services. BICS stand-alone direct margin declined by 13.6% over the year carrying the last -- largest part of the COVID-19 impact. In addition to this adverse COVID-19 effects, the underlying direct margin was further impacted by MTN in-sourcing process, emphasizing the structural voice revenue decline. In contrast to it, growth was noted -- linked to the expansion of BICS activities in the Cloud Communication business. Now moving to Slide 18. We have closed the year with a strong reduction of our cost. For the domestic cost, we achieved a 3.9% decrease, of which EUR 45 million is a structural reduction and is largely the results of our headcount program we launched in March 2020. In terms of that, we also had some benefits from COVID-19, which were rather of temporary nature. Putting all together, this brings me to the group EBITDA on Slide 19. And here again, negative effects from COVID-19 has played a significant role in the decline. The group EBITDA for the full year 2020 ended EUR 34 million below the one of 2019, including an estimated negative impact from COVID-19 on our operation for almost EUR 50 million. On the next slide, you can see on the CapEx and investment side, on Slide 20, we have a fiber rollout that is progressing very, very well. We ended the year with a total number of 460,000 homes passed, an increase by 69,000 in the last quarter of 2020. As you can see on the chart, we have increased our weekly pace significantly, reaching 5,000 per week in the fourth quarter. Hence, we are well on our way to realize our announced acceleration of this fiber rollout. On Slide 21, you see that including our fiber investments, our CapEx for 2020 reached exactly EUR 1 billion, which was slightly above our estimation due to some additional customer CapEx in the last months of 2020, driven by the success of Flex, the fiber uptake and some win in ICT domains. The normalized free cash flow for 2020 ended at EUR 354 million, and as shown on the graph, the main driver for the lower free cash flow level compared to 2019 was the additional cash out related to the headcount programs, with especially the high cash out for the fit-for-purpose plan. I'm on Slide 23 now. So with EUR 836 million of EBITDA minus CapEx, we have delivered upon the guidance for the year. This in spite of a bit higher-than-anticipated CapEx, as I said before. This brings me to the last part of this introduction. And now looking at 2021 and beyond. And now moving to 2025 to the guidance. And as we set out during our CMD in March 2020, the year 2021 will be a transformational year for the company. It remains for 2021 to see high uncertainty on what will be the level and duration of COVID-19 and what will be the related impact of this sanitary situation. In our assumption, we have anticipated a gradual recovery, [ affirming ] volumes in the second part of 2021. This included, we expect the 2021 underlying domestic revenues to remain rather close to the 2020 level, supported by further customer growth in the consumer market, TV and mobile postpaid base and by a carefully managed transition within the enterprise segment. For wholesale segment, we expect a continued impact eroding SMS inbound traffic, but, as you know, this has a neutral effect on domestic margin. To build the foundations for a growth trajectory, we anticipate in 2021 some additional expenditures. For domestic operations, this is related to fiber migration and IT transformation. Also cloudification, which is a trend in the industry and the rollout of the shared mobile network by Mwingz will have the effect of increasing OpEx while reducing CapEx, so no impact on the cash. At the same time, we expect less cost benefit from COVID-19-related measures in comparison to 2020. All these elements account for a total of around EUR 50 million of operational expenses that will impact our domestic operations. This aside, we'll continue our tight cost control in other areas and work on cost efficiencies through further digitization, automation and simplification of our operations. So this brings us to the underlying group EBITDA for 2021, which we expected to range between EUR 1,750 million and EUR 1,775 million. Our group CapEx is estimated to land close to EUR 1.2 billion for 2021. As we announced at our fiber update in January, we are aiming to double the rollout of speeds of fiber compared to 2020. In addition, we'll be investing, amongst other things, in the mobile network as well as in IT transformation. And with regards to our debt level, we anticipate that for 2021, our net debt-to-EBITDA ratio will remain below 1.6x. This takes into account equity injections in the fiber JVs, the acquisition of the minority shareholders of BICS. And BICS -- and of course, the acquisition of Mobile Vikings pending the approval of the competition authorities. Now moving to Slide 26. We confirm our ambition from our #inspire2022 strategy, bringing the domestic operations back to top line and EBITDA growth as from 2022. We also confirm our indirect OpEx ambition for 2022, being a net indirect OpEx reduction of between minus 1% to minus 2% CAGR, and this, over the 3-year period 2020 till 2022. With digitization benefits coming in sooner than expected, this cost objective was already largely reached in 2020. So in a view of obtaining structural cost efficiencies, we are shaping up a new company-wide cost program in which we are ambitioning a total of gross cost savings for about EUR 400 million. Roughly half of this is reflected today with the 2020-2022 cost objective, and the remainder is to come in the 2023 to 2025 periods. This brings me to my very last point. I am pleased to announce that our Board of Directors approved -- proposed to the general assembly to return to our shareholders a gross total dividend of EUR 1.2, of which EUR 0.50 was returned as interim dividend in December 2020. We also reiterate our intention to return over the result of 2021 and 2022 a gross dividend of EUR 1.2 per share to be considered at the floor. With this, I have come to the end of the presentation, so you can now open the line for your questions. Thank you.

[Operator Instructions] We have 1 first question from Mr. David Vagman from ING.

Can you hear me?

Yes, we can.

Okay. So I got 2 main questions. First, confirming your disposal program. Once your Mwingz JV is fully operational, so after the integration, and given the very strong appetite from investors and the rich valuation for towers,, would you consider selling part of your tower asset for a stake in Mwingz? So that's my first question. And then secondly, on the free cash flow investment in 2020, 2021, could you elaborate on the total CapEx guidance and the equity cash injection for fibers in 2021? I thought there will be a reduction in 2021 CapEx compared to the initial Capital Market Day guidance. And this thanks to the JVs. In the end, you still guide for CapEx close to -- of EUR 1.2 billion, which to me seems a bit on the high side. So is it related to additional investment, not necessarily fiber related? Or is it simply saving or customer optimized equipment, so market share related. And so as I said, so if you could also quantify the equity cash injection of 2021, and whether this is basically essentially front-end loaded?

Okay. First on the -- on your first question, as you said, the focus for 2021 is really to execute on the Mwingz joint venture and to really work on the combination of the active mobile network of Proximus and Orange. That's really the focus of 2021. That said, you also know that the context -- the regulatory context of the Belgium market is a little bit more unfavorable compared to other markets in terms of tariffs. But that said, I think we -- it's fair to say that all options need to be kept open, and that we will consider that possibility, not being a short-term focus for us, but we want to keep all options open. So we definitely also work and prepare and do some preparatory work. But as I said, we have also operation in Luxemburg, that could be the good market for us on that matter. And we will focus on Mwingz, also on the combination of the active part of the network in Belgium. And all options are still kept open for the tariffs in Belgium. I will also start on your second question, and then lend the floor to Katleen. And we'll start with the CapEx question. I think the EUR 1.2 billion reflects really the acceleration we want to do first ourselves, knew that we are first rolling out at the more dense areas of Belgium. And indeed, this is ambitious in terms of [ railroad ] because we want to roll out 300,000 new homes next year with our own fiber. So that is a very ambitious acceleration. So the level of CapEx will be also depending on our ability to reach that very ambitious acceleration of the rollout. But I think this is a good investment. So if we can really meet that objective, and we'll be happy to reach the EUR 1.2 billion of CapEx next year. Of course, depending on the achievements in terms of FTTH net new homes, the level of CapEx will be adapted.

And so as to your question on the free cash flow, looking at the free cash flow consensus, which is EUR 330 million, I don't think we will be that far off. So what is the free cash flow composed of is, of course, the EBITDA minus the CapEx. But we have as well several cash outs for the BICS acquisition for Mobile Vikings. But we will end the equity injections in the JVs, which should be still quite limited in '21, but we have as well some good news. Some good news related to some timing on tax payments as well less restructuring payments that we will have to pay in '21 compared to 2020.

Okay. Looking at the less phase of 1 point -- sorry, the leverage net debt-on-EBITDA indication that it would remain below 1.6. Because this is quite, it seems, like if we would put ourselves at 1.5, it could still be quite above consensus, it seems to me. It's not because of some equity cash injection in the JV.

So the leverage of 1.6 takes into account, of course, our free cash flow. That takes into account as well the acquisitions to acquire the minority shareholders BICS, Mobile Vikings and limited injections in the fiber JVs. But this is being offset by some timing and tax payments and as well the restructuring payments.

Okay.

Yes. So just to add, as Katleen said, if you look at the consensus on free cash flow today, I think the issue was quite clear is that we will not land far off that consensus in 2021.

Next question is from Mr. Nicolas Cote-Colisson from HSBC.

Back on the EBITDA bridge to 2021. First, can you explain better the EUR 50 million linked to fiber migration, IT transformation, cloudification, can you be a bit more precise on that? And if you also can say if it is impacting the gross margin, or is it below that? Secondly, on network sharing, as of the plan was for OpEx and CapEx incremental cost of EUR 75 million in '21 to '23, has this changed? And how does this contribute to the previously mentioned EUR 50 million extra cost? And third and last, what's the impact of fixed and mobile [ dilution ] rates cuts expected for '21 and '22? Was it incremental EBITDA pressure you had to factor in, in your new guidance?

Okay. I will take your first and your third question. On the first one, on the EUR 50 million linked to fiber cloudification, you can consider 1/3 is one-offs, mostly linked to COVID. 1/3 is transitory costs for transformation. We are a bit boosted our plan to transform our IT systems. And this will be a bump in OpEx also linked to the CapEx spend on IT transformation. You know that a part of your CapEx needs to be -- has a consequence on your OpEx line for IT transformation. And 1/3 is more structural, linked to fiber migration of customers, increasing customer OpEx when you migrate a customer from the fiber network to the copper network, you have an OpEx cost associated to the migration, which is going to be -- starting to be significant in 2021 and will continue in the coming years. And then you have the cloudification effect. When you are moving to cloud, your information systems, you are switching the CapEx costs to OpEx cost and of course, with no impact on the cash. But the way you are accounting for those cloud-based IT systems has an impact on your OpEx base. So just to summarize, 1/3 transition cost not to be replicated after 2023. And 1/3 of more structural increase of our cost. But as I said, our guidance of net decrease of our indirect cost of in between minus 1 to minus 2 CAGR decrease between '20 and 2022 includes all those elements. So there is also that to be taken into account. On the FTR and fixed and mobile transmission rates, for us, is to be very, very low impact on the direct margin, only a small impact on the revenue side and no impact on the direct margin. It's -- and one question I forgot to answer on the first one. So it's mainly below the direct margin, this effect of EUR 50 million. So it's no impact on direct margin, mostly below direct margin that you're going to see those EUR 50 million next year. And on the network sharing.

And so on the network sharing, indeed, we do have [ fire ] from investments to make in order to make the mobile network sharing agreements up and running, and those investments are included in the CapEx as well as on the OpEx part. And so they are included in our guidance. And the numbers haven't changed compared to our previous guidance.

But sorry to follow-up on that. Within the EUR 50 million, in the 1/3, 1/3, 1/3, is there anything for this run sharing start-up costs?

There is parts included but it's -- yes, it's a small part, which is included in the temporary impact that we will have for a short period. And so of course, once that the mobile roam sharing is up and running, those costs will disappear.

Next question is from Mr. Emmanuel Carlier from Kempen.

I have 2. The first one is on fixed voice. So we saw accelerated losses in 2020 year-over-year. So the question is, what is driving that? And do you believe that the 2020 trend will continue in the coming years? And then the second question is about the EBITDA guidance. So if we compare consensus with your midpoint of the EBITDA guidance, there is 80 -- more or less EUR 80 million difference. So EUR 50 million is related to the additional expenses. But what is, in your view, the other EUR 30 million that is missing?

Emmanuel, Jim Casteele is speaking. So indeed, we see in the consumer segment, a declining appetite for fixed voice. This is also why we have launched mid last year our new Flex offer, which is addressing this new trend, and it is actually also delivering, as Guillaume already mentioned, very good operational results. Going forward, for the coming quarters, I don't expect any real changes on this trend. So I expect this trend to be similar to what we have been seeing over 2020. What is important for us, and what we really look at is the RPC, so the average revenue per customer. And as you know, our 3P convergent ARPC is around EUR 92, which is much higher than the current average RPC of EUR 59. So we still create a lot of value with our 3P mobile Flex solutions. And we also see in our Q4 results that we have been able, with Flex, to capture the valuable part of the market as we have delivered very strong performances, both on Internet, but also on digital TV and on mobile postpaid.

On the EBITDA of 2021 compared to the consensus. I think indeed, you have the EUR 50 million that could be part of the explanation. Second thing probably that could explain the difference is related to BICS and TeleSign. Now we still have an expected roaming impact for BICS because we have 1 initial quarter of COVID impact and all Q1 is compared to last year. Second, at TeleSign, you see the growth numbers. And if we want to continue and to accelerate that growth, we need to reinvest a bit in the growth, in the product, in the go-to-market of TeleSign, to deliver a strategy growth year-over-year for TeleSign next year. And that also implies some investments in product and go to market. So that the second element, BICS and TeleSign probably that has been a little bit different from what we have in mind and the guidance. And the last element probably, but to be confirmed, that the transition at the B2B businesses, even if we are really trying to do it, as I suppose this transition, the price pressure in the B2B market is there and could be one last explanation of the difference in between the consensus and our guidance.

Maybe one other question I have is on the free cash flow. So you commented on free cash flow, but to me, it was not very clear. Did you give a bit more precise guidance on 2021 free cash flow expectations?

What we did is that we just mentioned that the consensus today is at EUR 330 million for our free cash flow for 2021 and what we just said is that we should not land far off that number.

I still have a bit difficulties to understand exactly why. With the EBITDA being lower loss and CapEx higher, could you maybe quantify some of the variables like the cash taxes that [ will probably be ] lower?

So let me try to answer this. I think in terms of EBITDA, we gave the guidance as well in terms of CapEx, we are guiding as well. But on top of it, you will have some extra cash outs for the BICS acquisition for Mobile Vikings, and as well a limited amount of equity injections in the fiber JVs. But at the other end, we will have dividend payment, of course. But on the other hand, we will no longer have some important cash outs for the counter-transformation plan. And we will have some good news in terms of tax payments.

Could you be a bit more precise on the tax guidance because that's a one-off, of course.

No. That's -- we don't disclose that. I can only repeat that we think that we won't be too far off from the free cash flow consensus of EUR 330 million.

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

Just a question on the top line guidance, please. It sounds like from the presentation, you're suggesting that consumer growth can remain quite robust with the tailwinds from the better subscriber growth this year. But I was just wondering what are we thinking, is consumer growth going to be enough to offset the tailwinds -- or sorry, the headwinds in enterprise? How will the 2 dynamics play out in '21 within the guidance?

That's exactly correct. I think that we indeed are having a very nice traction on the consumer part and we are transitioning at the enterprise segment. And we do think that the growth in the consumer activity will partly offset or all offset, because it's roughly in line with this year, 2 elements, of course, the content transitioning on a transition period at enterprise, but also a continued decline on mobile incoming revenues. Do not forget that SMS mobile traffic will continue to decrease. So we also have to offset that decrease in mobile SMS incoming revenues.

Okay. So you are saying basically that you can be flattish? Or is this sort of approaching flat guidance?

Yes. Sorry, I was muted. So yes, that's what we guided to. I think this is quite clear.

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

Yes. 2 questions. First one relates to guidance on the net debt-to-EBITDA ratio. Thanks for providing that. I was curious where this ratio aside from cash from acquisitions that have been announced. It also includes some assumptions on proceeds from future asset disposals in line with the #inspire2022 objectives. For instance, thinking about the intention to downsize the headquarters in Brussels or the sale of other activities such as Be-Mobile? That's the first one. Second actually relates to COVID mostly. Yes, Belgium has been in a quite stringent -- there have been some quite stringent lockdown measures in place. Initially most of your shops closed, but then later, reopened. Your commercial performance did not suffer too much in Q4 on the contrary. But related to customer installations and deployment of fiber, just wondering how much of a challenge are the current measures today? And then more broadly, yes, you've managed to very much quantify the overall impact of COVID-19 in 2020. Obviously, curious for 2021, what are sort of your assumptions this time around?