Brussels, February 27, 2026, 12:12 CET — Regular session
- Shares of Proximus took a steep hit as the Belgian telecom company slashed its dividend policy.
- Despite beating full-year operating profit forecasts, investors are still wrestling with the trade-off between debt and investment.
- Up next: a strategy update from management, then the April shareholder vote on the 2025 payout.
Shares of Proximus (PROX.BR) tumbled roughly 17% to about 6.89 euros on Friday—marking their sharpest slide in months—after the Belgian telecom operator rolled out a reduced dividend policy. Income-oriented investors were rattled. 1
Why does the cut sting? Telcos are classic “yield” plays, straddling that line between bond and business, so a dividend reset jolts how investors see their risk. The move also hits just as European operators are shelling out for fibre and 5G, all while keeping a wary eye on leverage creeping higher.
Proximus pitched the decision as a way to manage its balance sheet while keeping space for further investment. But investors have been rewarding certainty over potential, making that argument a harder lift right now.
The company plans to propose an annual dividend of 0.30 euro per share, slashing it from last year’s 0.60 euro. Shares skidded about 20% earlier. Management also pointed to as much as 1.25 billion euros earmarked for infrastructure, with full-year EBITDA landing at 2.3 billion euros—beating the company’s own consensus figure of 2.1 billion euros. NewStreetResearch zeroed in on the dividend cut, calling it the standout move and questioning the decision, since guidance otherwise matched expectations. 2
Proximus’ board signed off on a 0.60-euro gross dividend for 2025, to be split in two: 0.30 euro already went out in December, with shareholders set to vote on the remainder—also 0.30 euro—expected to land in late April. The telecom firm also rolled out a fresh dividend roadmap, outlining payouts of 0.30 euro for 2026, 0.40 euro for 2027, and 0.50 euro for 2028. 3
Chief executive Stijn Bijnens flagged network expansion and a focus on leverage. “Our 5G network now reaches 90% of the population,” he told investors, and fibre is “around 42% of all premises.” Proximus is guiding for group capex in 2026 between 1.2 billion and 1.25 billion euros, with organic free cash flow capped at 100 million euros, and targets net debt to EBITDA near 2.8x by S&P’s yardstick. The fourth quarter update showed group revenue down 6.6% from a year earlier, dragged by weakness in the Global segment. Proximus logged a 275 million euro goodwill write-down there, citing persistent headwinds, including a structural drop in CPaaS SMS—specifically, one-time-password traffic. 4
Proximus is set to eliminate 1,200 positions by 2030, roughly 15% of its employee base, CEO Bijnens told investors as he outlined a drive for AI-powered efficiency. He added that external workforce expenses are slated to drop by 25 million euros by 2028. 5
Here’s the blunt risk: tougher competition in Belgium could sting worse than anticipated, or the Global unit’s turnaround might drag on, making that climb back to higher dividends look too hopeful. Cost-cut slip-ups? Those tend to nick service quality first, and that’s usually where churn starts creeping in.
Up next, investors are zeroed in on management’s strategy and capital allocation signals at Friday’s investor events. The April annual general meeting and dividend dates are just around the corner. Traders, meanwhile, are scanning for firm updates on regulatory talks over network plans in Flanders, and watching to see if guidance remains intact as the year gets underway.
