Iliad generated group revenues of EUR 1.39 billion in the fourth quarter, up 11.0 percent year-on-year and accelerating from 8.1 percent growth in Q3. In its core French market, growth in service revenues improved for the fourth consecutive quarter, as Free returned to positive customer net additions in the mobile segment and continued to gain fixed broadband subscribers. While confirming the targets set within its 2024 Odyssey plan, the company noted that the current Covid-19 epidemic could have a negative impact on its objectives and on the wider telecom sector, noting the possibility of shortages of some electronic components and a slowdown in the pace of fixed and mobile network deployments.
For the full-year, Iliad generated an EBITDAaL (after leases) result of EUR 1.65 billion, down 5.8 percent year-on-year due to start-up losses in Italy. In France, full-year EBITDAaL rose 5.5 percent to EUR 1.91 billion, supported by an improved mobile subscriber mix and reduced reliance on national roaming. The group reported a profit of EUR 1.73 billion in 2019, boosted by strong non-recurring capital gain from the mobile infrastructure deals with Cellnex.
In France, Free posted fourth-quarter revenues of EUR 1.25 billion, up 5.8 percent year-on-year (+3.3% in Q3). Excluding the acquisition of Jaguar Network, revenues increased by 4.8 percent. The positive growth trend continued in the mobile business, where service revenues increased 9.3 percent to EUR 527 million (+6.3% in Q3). Similarly, performance improved at the fixed broadband division, with service revenues up 3.4 percent to EUR 666 million (+1.1% in Q3).
ARPU in both the fixed and mobile segments progressed from the year-earlier period, partly supported by the inclusion of a promotional e-book offer in certain plans. Quarter-on-quarter, mobile ARPU was stable at EUR 10.60, with fixed ARPU standing at EUR 32.60 (EUR 32.50 in Q3).
For the first time in two years, Free Mobile's customer base recorded positive net additions on a quarterly basis (+17,000 from -18,000 in Q3). Subscriptions to the higher-tier plan grew by 102,000 since September (+147,000 in Q3), to reach 8.18 million overall, representing 61 percent of the mobile base.
In the fixed market, the third quarter had seen Free return to positive customer growth, after six consecutive quarters of negative net additions. The recovery was confirmed in the fourth quarter (+32,000, stable since Q3), as the operator closed the year with 6.46 million fixed broadband lines. FTTH net additions improved to 245,000 (+210,000 in Q3) for a total of 1.76 million FTTH subscribers at end-December, or 27 percent of Free's fixed broadband connections.
