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General

Iliad takes new sales approach, as Q1 performance suffers from falling fixed line revenue

Tuesday 15 May 2018 | 11:09 CET | News

Iliad reported first-quarter revenues of EUR 1.2 billion, up 0.8 percent year-on-year, slowing from 6.9 percent growth in Q1 2017. The company said that performance was impacted by lower than expected results from the fixed line division, which posted revenues down 1.6 percent to EUR 672 million (+5.0% in Q1 2017). The mobile business saw revenues increase by 3.9 percent to EUR 531 million (+9.3% in Q1 2017). Iliad said that the top priority for the newly appointed management team will be to reinvigorate growth via the implementation of a new sales and marketing approach, aimed at boosting mobile and fibre gross additions while reducing churn.

Commercial launches in the pipeline include new fixed broadband plans in the coming days and an additional mobile package to be announced within the next four weeks. The company also confirmed its imminent entry to the Italian market and the introduction of new set-top boxes by mid-September, including the much anticipated Freebox V7.

Free's operational performance in the first quarter was marked by a net loss of 19,000 fixed broadband customers. FTTH subscriptions increased by 90,000 to reach 646,000 (10% of the total base). The effect of promotions and the higher VAT rate on audio-visual offerings impacted fixed line ARPU, which declined to EUR 32.90, from EUR 33.90 in the previous three months and EUR 34.50 in the year-earlier period.

Free Mobile’s customer base increased by 130,000 since December to reach 13.8 million, of which 8.3 million were LTE customers. Population coverage for its LTE services rose to 88 percent at end-March and is on track to reach close to 90 percent by the end of the year, while 3G coverage is expected to progress from 94.5 to 95 percent.

Looking ahead, Iliad announced a number of new targets for the coming years. It expects to sign up 300,000-500,000 FTTH net customer additions in 2018, and around 500,000 per year from 2019, with a goal to have 1 million FTTH subscribers by early 2019. In its financial guidance for the full year, the company expects to achieve EBITDA margin growth in France, and reiterated a target for a consolidated EBITDA margin of over 40 percent by 2020.



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Categories: General
Companies: Free / Free Mobile / Iliad
Countries: France
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