Iliad posts strong first half results

31 Aug 2012

French service provider Iliad has posted revenue of EUR1.44 billion (USD1.8 billion) for the first half of 2012, up 39% year-on-year, boosted by the launch of its mobile service earlier in the year. Earnings before interest, tax, depreciation and amortisation (EBITDA) remained flat at EUR417 million, while net income fell by 45% to EUR80 million due to the spending required for the mobile launch. The company added one million mobile subscribers in the second quarter to take its total to 3.6 million in fewer than six months, corresponding to a market share of more than 5%. Iliad says that it hopes to achieve a 15% share of the country’s wireless subscriber market in the ‘medium term’, while targeting a 25% share in the ‘long term’, without providing specifics.

While the media spotlight has been on Iliad’s impressive and at times controversial mobile launch, the company’s fixed line business enjoyed a solid first half to the year with revenues rising 9% on the back of a 54% gain in net new broadband subscribers. EBITDA from the fixed line unit rose 11% as more customers started using a newer set-top box and paying a highly monthly fee.

France, Free Mobile (Iliad), Iliad (Free)