Iliad has reported group revenues of EUR 1.67 billion for the three months to December, including the contribution of Polish operator Play (consolidated since 18 November). This represents a year-on-year increase of 20.0 percent on a reported basis, while organic revenue growth improved to 7.7 percent, from 6.3 percent in the previous quarter. Full-year revenues rose to EUR 5.87 billion (+6.4% organically), while the annual EBITDAaL result progressed to EUR 1.96 billion, supported by improved profitability in France (+6.0%), lower losses in Italy, and the contribution of Play.
The group has confirmed its 2021 financial guidance for France, targeting an EBITDAaL less capex result of around EUR 900 million (excluding B2B activities), up from EUR 736 million reported in 2020. It has also set new objectives for Italy (EBITDAaL breakeven in H2 2021) and for Poland (EBITDAaL less capex growth in 2021). Confidence in the group's growth prospects is reflected in the proposal to increase the dividend to EUR 3.00 per share (up from EUR 2.60), which will be recommended at the AGM scheduled for 02 June.
French revenue growth improves in Q4, mobile loses customers
In the core market of France, Iliad saw fourth-quarter service revenues increase 3.1 percent year-on-year (+2.0% in Q3), with overall revenues up 2.0 percent to EUR 1.28 billion. Within the mobile segment, service revenues rose 3.3 percent to EUR 545 million (+2.4% in Q3), while the growth trend improved to 2.9 percent in the fixed business (+1.7% in Q3), based on EUR 686 million worth of revenues.
Mobile ARPU progressed 3.8 percent year-on-year to EUR 11.00, with a smaller proportion of the customer base on the lower-tier plan. Fixed ARPU declined slightly to EUR 32.30, from EUR 32.60 in the year earlier period.
The quarter was marked by a net loss of 100,000 mobile subscriptions since September (+70,000 in Q3), driven by a sharp reduction in lower-tier customers (-160,000). As a result, Free Mobile closed 2020 with 13.38 million connections, of which 64 percent were on the 'Unlimited' 4G/5G plan (up from 61% in 2019). The operator's LTE coverage improved to 98.3 percent of the French population at end-December.
In the fixed broadband segment, Free achieved 51,000 quarterly net additions (+99,000 in Q3) to reach a customer base of 6.72 million. Out of this total, FTTH subscriptions rose to 2.80 million after a net increase of 286,000 since September (+299,000 in Q3).
Looking ahead, three long-term goals have been revised with more ambitious target dates. The operator is now aiming for a marketable fibre footprint of 30 million French premises by 2022 (2024 previously) and 5 million FTTP line by end-2023 (from over 4.5 million by 2024). It also aims to reach 25,000 mobile cell sites by end-2023 (2024 previously).
The objectives for the B2B segment remain unchanged despite the delayed launch of much anticipated new offers, described as "imminent" by the company.
