Iliad reports profitable first half; cruising to full-year broadband targets

28 Aug 2008

French fixed line and broadband operator Iliad (Free) has reported year-on-year revenue growth of close to 21% to EUR692 million in the six months ending 30 June 2008, as its ADSL customer base grew by 19% to 3.134 million and broadband ARPU went up by EUR1.3 in the period. Group EBITDA in the first half of the year increased by 24.4% to EUR257 million. The EBITDA margin hit a record high of 37.1%, compared to 36% for the first half of 2007. Net income was up 27.5% to EUR83 million. Iliad reported that its strategy of focusing on unbundled local loop (LLU) services continued apace, with the connection of 350 new exchange sites on its network to the incumbent PSTN operator France Telecom in the first six months of 2008. On 26 August Iliad completed the purchase of 100% of Liberty Surf Group from Telecom Italia, which operates broadband ISP services in France under the Alice brand. Iliad paid EUR775 million for the operator, which boasts around 850,000 active subscribers. In light of its first half performance, Iliad expects to comfortably meet its full-year growth targets, which include signing up a total of 3.25 million broadband subscribers (excluding Alice), and achieving an 84% unbundled broadband subscriber base (excluding Alice, up from around 83% currently). It also aims to roll out fibre-to-the-home infrastructure covering 70% of Paris by the end of 2009.

France, Iliad (Free)