Altice Europe reports ‘solid financial performance’ in 1Q20

21 May 2020

Netherlands-based multinational telecoms group Altice Europe has reported consolidated revenues of EUR3.632 billion (USD3.98 billion) for the three months ended 31 March 2020, up 3.6% year-on-year from EUR3.507 billion in 1Q19. The company’s main operation in France accounted for the bulk of it, reporting revenues of EUR2.643 billion (up 3.6% y-o-y) in 1Q20, while Portugal and Israel saw annual revenue increases of 2.6% (to EUR522.3 million) and 6.4% (EUR246.5 million) respectively in the period under review; Altice also reported significant revenue growth at its Teads (9.0%) unit. Adjusted EBITDA, meanwhile, grew from EUR1.301 billion to EUR1.314 billion in the period under review, representing a 1.0% annual improvement. Accrued CAPEX decreased to EUR722.3 million in 1Q20 (EUR770.6 million in the year-ago period).

Altice Europe highlighted that in 2020 the group expects to accelerate residential revenue growth in its key geographies, grow Altice Europe revenue and EBITDA and further develop the Telecom perimeter, targeting leverage of 4.0x to 4.5x net debt to EBITDA.

In operational terms, Altice Europe ended March with a total of 26.134 million mobile B2C subscribers across France (including the French Overseas Territories [FOT]), Portugal, Israel and the Dominican Republic, alongside 9.324 million unique fixed line B2C customers. France remains Altice’s leading market in terms of subscribers, with 15.874 million mobile B2C users and 6.364 million fixed B2C accounts. In Portugal, the company had 6.219 million mobile B2C and 1.599 million fixed B2C subscribers, while the Israel unit ended the quarter with 1.355 million (mobile B2C) and 1.029 million (fixed B2C) subscribers. The Dominican Republic, meanwhile, had 2.686 million mobile B2C subscriptions on its books and 333,000 fixed B2C customers at the end of March 2020.

Patrick Drahi, founder of Altice Europe, commented: ‘The Group delivered a solid performance in the first quarter, against this challenging backdrop. In both Altice France and Altice International we achieved an acceleration in residential service revenue growth supported by strong subscriber net gains in all geographies and all segments. We continue to carefully assess the potential impacts of the pandemic but currently see no need to change our 2020 guidance. The Group continues to significantly invest in and expand its proprietary best-in-class infrastructure, commensurate with Altice Europe’s leading position in each market … Overall, we have achieved a solid start to 2020 and we expect to build on this over the rest of 2020.’

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