Altice maintains outlook as revenue slide continues

News General Global 9 AUG 2016
Altice maintains outlook as revenue slide continues
Altice reported a continued slide in revenues in the second quarter, driven by weakness at SFR in France. Total revenues fell 2.6 percent year-on-year to EUR 5.828 billion, while French revenues dropped 4.3 percent to EUR 2.781 billion amid continued subscriber losses at SFR. Altice's new US acquisitions, Suddenlink and Cablevision (Optimum), reported revenues respectively up 3.0 percent to EUR 566 million and down 1.0 percent to EUR 1.432 billion. 

Growth in the US as well as Portugal helped Altice's adjusted EBITDA increase 2.7 percent to EUR 2.265 billion, and the margin expanded by 2 percent points to 38.9 percent. Free cash flow fell 7.6 percent to EUR 1.157 billion on higher investment spending in broadband and mobile upgrades and a one-off payment for the joint venture in Israel. Capital expenditure rose to EUR 1.108 billion from EUR 952.8 million a year ago. 

Altice ended the quarter with 8.320 million fibre and cable customers, an increase of 71,000 customers in Q2, with growth in France, Portugal and at Cablevision in the US. It had a total 19.825 million fibre and cable revenue-generating units, up from 18.726 million a year earlier on a pro forma basis for the acquisitions. Broadband was Altice's biggest market, with 7.150 million customers, compared to 6.883 million TV subscribers. 

The company also counted 5.674 million DSL customers, mainly at SFR, down by 138,000 compared to March. In mobile, Altice reached 25.922 million customers at the end of June, down from 26.313 million a year ago. Postpaid subscribers fell by 160,000 in the three months to 17.100 million. 

Altice reiterated its guidance for an improving trend in revenue this year at constant currency rates. In the second quarter, revenue fell 1.7 percent at constant exchange rates, while adjusted EBITDA was up 3.7 percent. The company also still expects mid-single digit growth in group adjusted EBITDA and operating free cash flow flat to slightly down in 2016, reflecting accelerated investments. This includes expected growth in adjusted EBITDA from France. The outlook excludes the more recent acquisitions of the media assets in France and Cablevision.

Categories:

General

Companies:

SFR,  Cablevision,  Suddenlink,  Altice Europe

Regions:

Global

Tags:

Voice services, Data services, Financial figures, Internet Access

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