Altice Europe has confirmed its full-year targets and medium-term guidance as its French and international subsidiaries continued to report an improving revenue trend for the third quarter. In France, Altice generated revenues of EUR 2.65 billion in the period, up 7.2 percent year-on-year (+4.0% in Q2), as SFR benefited from ongoing customer gains. Adjusted EBITDA rose 9.0 percent to EUR 1.05 billion (+10.1% in Q2), while the adjusted EBITDA margin increased to 39.8 percent, up by 0.7 percentage points since Q3 2018.
SFR's consumer business achieved positive revenue growth for a second quarter (+0.2% from +0.3% in Q2). This reflected resilience in the mobile segment (+0.7% from +2.1% in Q2), where revenues reached EUR 1.06 billion. In the residential fixed segment, the underlying trend continued to improve sequentially while remaining negative (-0.6% from -2.7% in Q2).
SFR's Business division, grouping B2B and Wholesale activities, gained from the construction and maintenance contracts secured with the ‘SFR FTTH’ joint venture, responsible for fibre deployments in low- and medium-density population areas of France. Growth accelerated significantly (+23.9% from +11.8% in Q2), based on revenues of EUR 876 million.
Mobile subscribers rose 3.4 percent year-on-year to 15.67 million across France and the overseas territories. In the postpaid consumer segment, quarterly net additions more than doubled sequentially to 234,000, while decreasing from the year earlier period (+391,000).
The residential fixed base was up 2.3 percent to 6.31 million, adding 41,000 net connections since June (+31,000 in Q2 and +52,000 a year earlier). Out of this total, fibre-based subscriptions rose by 59,000 in the quarter to 2.76 million, compared with 64,000 net additions both in the previous quarter and in Q3 2018. The fixed and mobile segments continued to benefit from a reduction in customer churn, which was down 15 percent year-on-year across all B2C products.
Altice International posts small drop in adjusted EBITDA, higher revenues
The four subsidiaries within Altice International generated revenues of EUR 1.04 billion, up 5.5 percent year-on-year (+3.6% in Q2). In Israel and the Dominican Republic, growth was driven by the favourable effect of currency movements. In Portugal, Meo saw revenues rise 2.1 percent to EUR 536 million, while video ad subsidiary Teads had another strong quarter (+34.1% to EUR 113 million). Overall, adjusted EBITDA remained in negative territory, declining 1.9 percent to EUR 396 million (-2.4% in Q2).
Parent Altice Europe, which combines France, International and Altice TV, reported improved revenue growth and an 8.8 percent rise in adjusted EBITDA. Excluding Altice TV, operating free cash flow increased by 11 percent to EUR 716 million. Total consolidated net debt was EUR 30.6 billion at end-September, compared to EUR 30.1 billion at end-March.
