Altice France returns to EBITDA growth, as revenues rise 4% in Q3

Friday 20 November 2020 | 10:44 CET | News

Altice Europe's French operations reported an improving trend in financial performance for the three months to September, while the customer base experienced significantly lower net additions, particularly in the mobile segment. Revenues progressed 4.0 percent year-on-year to EUR 2.75 billion (+0.2% in Q2), as growth picked up in telecom activities and the contraction in the Media business eased considerably. Adjusted EBITDA rose 2.8 percent to EUR 1.08 billion, following the 1.0 percent drop reported in the June quarter.

The segment grouping B2B and wholesale telecom activities remained the main driver of growth, with revenues up 9.2 percent to EUR 957 million (+11.1% in Q2). This division continued to benefit from the deployment contracts of the SFR FTTH joint venture, with 270,000 additional premises passed during the quarter (+268,000 in Q2).

SFR's consumer telecom division returned to positive growth (+1.9% from -2.2% in Q2), posting revenues of EUR 1.71 billion, including EUR 174 million worth of equipment sales. The recovery in B2C service revenues was driven by the residential fixed segment (+4.4% from +2.6% in Q2). Compared to the year-earlier period, mobile service revenues remained stable at EUR 889 million (-0.3% in Q2), with the company noting the ongoing impact on roaming from the Covid-19 crisis.

Looking at the commercial performance, SFR's mobile postpaid base recorded 25,000 net additions in the B2C segment, significantly lower compared to the previous quarter and the year-earlier period (+99,000 and +234,000 respectively). Including prepaid customers, B2C mobile connections rose 1.2 percent year-on-year to reach 15.85 million across France and the overseas territories.

Similarly, net additions decreased in the residential fixed segment, with 21,000 net new subscribers since June compared to 37,000 in previous quarter and 41,000 in Q3 2019. Overall, the residential fixed base rose 1.7 percent year-on-year to reach 6.42 million, of which 3.18 million on fibre-based connections (FTTH, hybrid fibre-coaxial, and LTE fixed wireless). SFR’s marketable footprint combining FTTH and hybrid fibre-coaxial connectivity covered 18.78 premises at end-September, up by 1.33 million since June.

Altice Europe’s telecom operations posts 1.7% EBITDA growth at constant currency

Altice Europe, which combines France, International and Altice TV, generated revenues of EUR 3.77 billion in the third quarter, up 4.1 percent year-on-year at constant currency (-1.2% in Q2). Across the group’s telecom operations, EBITDA rose 1.7 percent to EUR 1.43 billion, while operating free cash flow (adjusted EBITDA less capex) dropped 11.4 percent to EUR 621 million.

The 2020 guidance and the medium-term goal of an organic FCF above EUR 1 billion were confirmed. The group said that it will continue its deleveraging efforts, highlighting that its simplified capital structure has no material maturities before 2025.

As announced in October, Drahi's holding company has moved forward with its plan of a buy-out offer for Altice Europe, with more progress expected soon.

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Categories: General
Companies: Altice Europe / Altice France / SFR
Countries: France
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