(23,3 EUR, 0,89%) will index its rates starting 1 January 2012: a number of fixed and mobile rates and some rates for fixed Internet will be raised by 3.41%. will increase some mobile prepaid rate plans by 3.41% as of 19 January 2012. Fixed-to-mobile calls can on average become cheaper thanks to Happy Time XL.
News:
Indexation of rates with 3.41% corresponds with the increase of the CPI from October 2010 and September 2011. This applies to subscription modules such as the Classic line, Happy Time, Internet Comfort, Mobile Comfort, apack with Internet Comfort and TV and rates for calls to 1407. There will be no indexation for New Happy Time XL, simplified Classic calling rates, TV, the price of packs combining fixed and mobile internet with a Samsung tablet, the fixed-to-mobile rates for professional plans and the recent mobile rate plans. The press release points out that fixed-to-mobile rates will be lowered thanks to Happy Time XL, while the fixed-to-mobile rates for commercialized professional price plans will drop from 1 January 2012 as well.
Conclusion:
No impact on our investment case: while we admit that is under pressure from increased competition in Belgium, the encouraging 2Q and 3Q subscriber additions suggest that the company is taking the right steps to protect market share, and we believe the various challenges are well reflected in the current valuation. We reiterate our Buy rating and € 26.30 TP.