French telecommunications company Iliad Group has published its financial results for the first quarter of 2013, with revenues increasing 38.4% to EUR907.2 million (USD1.17 billion) from EUR655.7 million in 1Q 2012. Turnover from mobile service operations reached EUR294.5 million year-on-year from the EUR97.5 million reported in 1Q12, contributing more than one third of the group’s total revenue fifteen months after its launch. Iliad reported earnings from fixed broadband services of EUR615.6 million in January-March 2013, ten percentage points increase year-on-year from EUR559.7 million. However like many other French companies, the group does not disclose profit figures in the first quarter of the financial year. Iliad’s subscription database reached a total of 11.53 million in the first quarter of 2013, an overall growth of 9.10% year-on-year. The mobile subscribers increased to 6.08 million with 870,000 net new additions at end-March 2013, while fixed broadband users soared to 5.46 million during the same period.
Due to the cheap price plans offered by Iliad’s mobile division Free Mobile, the French mobile market has been experiencing an ongoing price war since the beginning of 2013, forcing Iliad’s competitors to slash prices in order to keep up. The price cuts, however, have significantly reduced profits for all mobile operators, with both Bouygues and SFR reporting slumps in their earnings during the first quarter 18.5% and 73.8% respectively. According to TeleGeography’s GlobalComms Database, in the financial year ending 31 December 2012, Iliad posted net profit of EUR186.5 (USD241.1 million), down 26% year-on-year, despite a near-50% rise in revenues. The company attributed the fall in net income to ‘the beginning of depreciation/amortisation for the Group’s mobile assets (network, licence, roaming charges etc)’.