Numericable-SFR revenue down 5% in 2014 despite subscriber growth

5 Mar 2015

Luxembourg-based Altice Group, majority owner of newly enlarged French telecoms operator Numericable-SFR, has published the financial results of its subsidiary for the twelve months ended 31 December 2014, reporting a 5% decrease year-on-year in revenue to EUR11.436 billion (USD12.63 billion) from EUR12.039 billion reported in 2013. The development was mainly attributed to erosion in mobile turnover generated by the residential and business-to-business (B2B) segments, which was partly offset by cost-saving measures implemented by the previous management team. Pro-forma adjusted EBITDA amounted to 3.100 billion, down 11% from EUR3.485 billion in 2013, while CAPEX reached EUR1.781 billion, a 7.7% decrease on the EUR1.930 billion reported twelve months earlier. Approximately half of the investment in 2014 was spent on the renovation and deployment of fibre and mobile networks, the operator said.

In operational terms, Numericable-SFR’s total mobile customer base reached 22.939 million subscribers by 31 December 2014, with a total of 13.004 million post-paid subscribers at that date, down 1.9% y-o-y. Mobile ARPU continued to decline in 2014, to EUR22.5, a 5.9% decrease on the 2013 figure. Further, 4G coverage surged in 2014, passing the 50% mark in December 2014, mainly attributed to the mobile network sharing agreement with Bouygues Telecom. The number of fixed broadband accesses reached 6.577 million in December, with 5.030 million ADSL uses at that date (down 1.4% y-o-y). Numericable-SFR’s fibre network passed 6.4 million households as at end-2014, compared to 5.6 million at end-2013 (pro-forma), equivalent to more than 800,000 net additions in the period under review. The company disclosed that it is well on its way to achieve its target of twelve million fibre connections by the end of 2017 and 15 million by end-2020.

France, Altice Europe, Altice France (SFR), SFR