Altice Europe reiterates FY2019 guidance on strong Q3 results

14 Nov 2019

Netherlands-based multinational telecoms group Altice Europe has reported consolidated revenues of EUR3.666 billion (USD4 billion) for the three months ended 30 September 2019, up 6.9% year-on-year from EUR3.429 billion in 3Q18. The company’s main operation in France accounted for the bulk of it, reporting revenues of EUR2.646 billion (up 7.2% y-o-y) in 3Q19, while Portugal saw a 2.1% annual revenue increase to EUR536.2 million in the period under review; Altice also reported significant revenue growth at its Altice TV (94.6%) and Teads (30.0%) units. Adjusted EBITDA, meanwhile, grew from EUR1.293 billion to EUR1.407 billion in the period under review, representing an 8.8% annual improvement. Accrued CAPEX, meanwhile, marginally increased to EUR722.3 million in 3Q19 (EUR706.7 million in the year-ago period).

Altice Europe highlighted that in September 2019 its board resolved to cancel 200 million common shares A held by the company. The cancellation of such shares will become effective after the amendment of Altice Europe’s articles of association as adopted by the General Meeting held on 6 November 2019 and the lapse of a two-month creditor opposition period.

In operational terms, Altice Europe ended 30 September with a total of 26.271 million mobile B2C subscribers across France (including the French Overseas Territories [FOT]), Portugal, Israel and the Dominican Republic, alongside 9.238 million unique fixed line B2C customers. France remains Altice’s leading market in terms of subscribers, with 15.668 million mobile B2C users and 6.312 million fixed B2C accounts. In Portugal, the company had 6.466 million mobile B2C and 1.591 million fixed B2C subscribers, while the Israel unit ended the quarter with 1.349 million (mobile B2C) and 1.008 million (fixed B2C) subscribers. The Dominican Republic, meanwhile, had 2.788 million mobile B2C subscriptions on its books and 326,000 fixed B2C customers at the end of 3Q19.

Patrick Drahi, founder of Altice Europe, commented: ‘Q3 2019 results show another acceleration in revenue growth for Altice France, Altice International and Altice Europe overall. In Altice France, our strong results were supported by all segments growing, including residential revenue growth year over year for the second successive quarter. This strong financial performance has been underpinned by the successful operational turnaround achieved by the new management teams, put in place 24 months ago. Group EBITDA growth remains very strong this quarter, paving the way for organic deleveraging. We reiterate all FY 2019 guidance. We continue to invest in our proprietary best-in-class infrastructure, commensurate with Altice Europe’s leading position in each market. In France and Portugal in particular, we have significantly expanded our proprietary fibre infrastructures again this quarter.’

Dominican Republic, France, Israel, Portugal, Altice Dominicana (formerly Orange), Altice Europe (formerly Altice Group), Altice France (SFR), HOT Mobile, PT Portugal (MEO)