Broadband drives Iliad’s revenue in Q3

29 Oct 2007

French alternative telecoms operator Iliad has reported a 29.4% year-on-year rise in revenues for the third quarter to EUR307 million (USD442 million), driven by a strong performance from its ISP Free. The unit signed up 141,000 net new additions in the three months to 30 September to close out the month with 2.77 million ADSL subscribers. Sales from broadband climbed 35.9% to EUR299.2 million, more than offsetting a 54.7% drop in turnover from traditional voice telephony services to just EUR7.7 million. Iliad’s OneTel voice unit continued to suffer from the impact of VoIP in the French market; by the start of October the unit had 180,000 subscribers, down from 194,000 at end-June, while ARPU flat-lined at EUR10 per month. By contrast, broadband ARPU rose from EUR33.5 in Q306 to EUR35 in June 2007 and EUR35.3 three months later. At the group’s Kedra division, sales slumped 81% year-on-year as a result of a surge in direct interconnections with mobile operators.

Iliad’s full-year goals are to achieve a broadband base of more than 2.8 million users, rising to four million by 2010; to have an unbundling rate of 80% by end-2007, rising to 85% in the long term; to sustain an average EUR20 gross margin on each of its unbundled lines; to pursue a profitable growth strategy; and to provide FTTH coverage of 241,000 households by the end of this year.

France, Iliad (Free)