Altice Europe reports France, International units back to growth in 1Q19

10 May 2019

Netherlands-based multinational telecoms group Altice Europe – created after Altice NV (also known as Altice Group) decided to spin off its Altice USA business and rename its core business (effective 8 June 2018) – has reported consolidated revenues of EUR3.515 billion (USD3.9 billion) for the three months ended 31 March 2019, marginally down from EUR3.528 billion in 1Q18. Adjusted EBITDA, meanwhile, grew from EUR1.248 billion to EUR1.297 billion in the period under review. Accrued CAPEX, meanwhile, remained flat at EUR770.6 million in 1Q19 (EUR760.7 million in the year-ago period).

Altice Europe highlighted that it reiterates its FY 2019 guidance, with expectations to achieve operating cash flow growth of around 10% year-on-year (excluding Altice TV segment). In FY 2019, Altice France is expected to deliver revenue growth of between 3% and 5% y-o-y with an adjusted EBITDA of between EUR4.0 billion to EUR4.1 billion.

In operational terms, Altice Europe ended 31 March with a total of 26.137 million mobile B2C subscribers across France, Portugal, Israel, the Dominican Republic and the French Overseas Territories (FOT), alongside 9.348 million unique fixed line B2C customers. France remains Altice’s leading market in terms of subscribers, with 15.400 million mobile B2C users and 6.446 million fixed B2C accounts. In Portugal, the company had 6.367 million mobile B2C and 1.585 million fixed B2C subscribers, while the Israel unit ended the year with 1.307 million (mobile B2C) and 992,000 (fixed B2C) subscribers.

Patrick Drahi, founder of Altice Europe, commented: ‘The turnaround of Altice Europe is materialising. Significant and continued investments in networks, as well as the consistent improvements in customer care, have led to a material reduction in churn rates, call volumes and strong improvement in customer satisfaction. In Q1 2019, Altice Europe started benefiting from this successful operational turnaround achieved by the new management teams put in place 18 months ago. Our two silos France and International are now growing for the first time since the IPO and the Group is back to EBITDA growth paving the way for an acceleration of the de-leveraging. Altice Europe has recently successfully extended the average maturity of its capital structure through a refinancing of EUR2.8 billion generating annual cash savings in excess of EUR110 million and highlighting the strong support from the debt capital markets for our strategy.’

France, Netherlands, Portugal, Altice Europe (formerly Altice Group), Altice France (SFR), PT Portugal (MEO)