Numericable 2013 revenues rise marginally, while profit plunges

12 Mar 2014

French broadband operator Numericable has published its financial results for the twelve months ended 31 December, reporting a marginal 0.9% increase in revenues, to EUR1.314 billion (USD1.820 billion), in line with the target set at the time of its initial public offering (IPO). Revenues from its consumer operations increased by 4.7% to EUR865 million, while the business segment generated EUR310 million, up by 1.4% y-o-y; Numericable’s wholesale division contributed EUR140 million to the total, an 8.6% decrease on the EUR153 million reported for the corresponding period of 2012. EBITDA for 2013 decreased, albeit slightly, to EUR616 million, from EUR619 million in 2012, while CAPEX increased by 12% y-o-y to EUR320 million at end-2013, due to fibre upgrade rollouts. In the twelve months under review, the group’s profit, which amounted to EUR86 million in 2012, plunged by 32.3% to EUR65 million. Numericable also published its financial guidance for the period 2014-2016, according to which the company is targeting revenue growth of 2%-5% per annum, while aiming to achieve adjusted EBITDA margin of close to 50% by end-2016.

In operational terms, Numericable reported a total subscriber base of 1.709 million at end-December 2013, a 5% increase on the 1.628 million reported in 2012, mainly attributed to the growing demand for very high speed broadband access. In the period under review, Numericable’s multi-play users reached 1.041 million, a 7% improvement on the 972,000 subscribers reported in 4Q12. Further, the company reported that by the end of 2013, 8.5 million households were triple-play enabled, with 5.196 million households able to receive a fibre connection at that date, an annual improvement of 8.5% from 4.788 million in end-2012. By end- 2016 the broadband network provider plans to pass 8.5 million households with its high-speed fibre-optic network, corresponding to 85% of the population, while also increasing customer penetration from 17.2% to 20%.

Eric Denoyer, CEO of Numericable, commented on the results: ‘The success of our recent IPO enables Numericable Group to execute with confidence its growth strategy on the very high speed broadband market. The performance delivered in 2013 is fully in line with the targets set for the year. As announced, we continued to roll out fibre and upgraded more than 400,000 households in 2013 … As a result, we grew our gross sales by 19% in 2013 versus 2012 and finished the year with more than 1.7 million customers.’

France, Altice France (SFR)