Bad hangover

19 January 2006 By Mike Verdin

The Belgian telecoms operator has delivered another blow to telecoms investors: internet TV will be more of a drain that it thought. What s more, it delivered the news at an informal analysts dinner. That raises doubts over its managers’ judgment.

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Scott Alcott, chief operating officer of Belgacom's fixedline unit, signalled that 2006 market forecasts for the Belgian telecoms operator were too high, analysts said. He told an analysts' dinner in London on January 18 that the staff costs and the rollout of internet television would damage fixedline ebitda margins.

Belgacom, which announces its 2005 results on February 24, did not reveal any new information, said Ingvild van Lysebetten, Belgacom's head of investor relations.

The immediate market reaction was to send Belgacom shares 4% lower to E26.25.

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