Telecomunicazioni
Altice NV: Second Quarter 2017 Pro Forma Results
· Continued strong execution on efficiency, investment and M&A strategy in Q2 2017 with continued revenue growth and margin expansion - FY 2017 guidance reiterated:
o Altice N.V. Group reported revenue growth +2.7% YoY in Q2 2017 (vs. -2.7% reported decline YoY in Q2 2016), or +1.4% growth YoY on a constant currency (CC) basis;
o Stable revenues in France (-0.4% YoY in Q2, +0.1% in H1 2017);
o Revenue growth in Altice USA +3.2% YoY on a constant currency (CC) basis (vs. +2.2% YoY in Q2 2016);
o Stable revenues again in Portugal (+0.1% YoY, +0.1% in H1 2017);
o Sustained revenue growth in Israel at +3.8% YoY on a CC basis.
· Commitment to fastest deployment of state-of-the-art fiber (FTTH) technology planned across Europe / U.S., targeting a global run-rate of c.4-5 million FTTH homes passed p.a. by 2018:
o Leading fiber operator in France reaching 10 million homes passed at the end of Q2 (+330k QoQ); new commitment for nationwide fiber coverage by 2025 without public subsidies;
o Altice USA continues to make progress on its FTTH network roll-out ("Generation Gigaspeed") and remains on track with its previously stated targets to upgrade 100% of Optimum's footprint and part of Suddenlink's footprint over the next five years;
o Still on track to become the leading fiber operator in Portugal reaching 3.5 million homes passed at the end of Q2 (+248k QoQ), targeting nationwide coverage by 2020.
· Altice Group Adjusted EBITDA grew +6.9% YoY (+5.4% on a CC basis) in Q2 driven by the strong growth of Altice USA +22.2% YoY on a CC basis under IFRS (Optimum Adjusted EBITDA +29.1% YoY, Suddenlink +9.6% YoY);
o Altice Group Adjusted EBITDA margin increased by +1.6 percentage points YoY to 40.4%. Altice USA reached an Adjusted EBITDA margin of 43.2% in Q1 (+6.7% pts YoY vs. 36.5% in Q2 2016) under IFRS (a margin of 42.7% under GAAP reporting standard).
· Altice Group Operating Free Cash Flow grew +16.0% YoY (+10.4% on a CC basis) in Q2 driven by the strong growth of Altice USA +41.7% on a CC basis under IFRS (Optimum and Suddenlink grew +57.8% and +16.1% YoY, respectively).
· Rapid deleveraging in US creating optionality for capital deployment.
· Altice Group Revenue €5,957m, up +2.7% YoY :
o €2,763m France (SFR) Revenue, down -0.4% (-0.2% excluding regulatory impacts);
o €2,112m Altice USA Revenue, up +5.8% on a reported basis; increase of +3.2% on a CC basis to $2,328m in local currency;
o €576m Portugal Revenue, up +0.1%.
· Altice Group Adjusted EBITDA €2,406m, up +6.9% YoY :
o €953m France (SFR) Adjusted EBITDA, down -4.6%.
o €913m Altice USA Adjusted EBITDA, up +25.3%; increase of +22.2% on a CC basis to $1,005m in local currency;
o €255m Portugal Adjusted EBITDA, down -8.3%.
· Altice Group Adjusted EBITDA margin expanded by +1.6% pts YoY to 40.4%:
o France (SFR) margin decreased by -1.5% pts to 34.5%.
o Altice USA margin increased +6.7% pts to 43.2% under IFRS (42.7% under GAAP);
o Portugal margin decreased by -4.1% pts to 44.4%.
· Altice Group Operating Free Cash Flow of €1,335m, up +16.0% YoY; up +10.4% on a CC basis.
· On July 14, 2017, Altice N.V. announced that it had entered into a definitive agreement with Promotora de Informaciones, S.A ("Prisa") to acquire Prisa's 94.7% stake in Media Capital SGPS, SA ("Media Capital"), the leading Portuguese media group. In accordance with Portuguese securities law, Altice announced the launching of a mandatory takeover offer for the remaining 5.3% of Media Capital which is not owned by Prisa.
· On June 27, 2017, Altice N.V. and Altice USA, Inc. (NYSE: ATUS, "Altice USA"), Altice's U.S. subsidiary, announced the closing of Altice USA's initial public offering of 71,724,139 shares of its Class A common stock at a price to the public of $30.00 per share, including the underwriters full exercise of their option to purchase 7,781,110 shares to cover overallotments. Altice N.V. owns approximately 70.2% of Altice USA's issued and outstanding common stock, which represents approximately 98.2% of the voting power of Altice USA's outstanding common stock. Altice USA's Class A common stock began trading on June 22, 2017, on the New York Stock Exchange under the symbol "ATUS".
· On June 23, 2017, Altice N.V. announced the closing of the transaction to acquire TEADS, the No. 1 online video advertising marketplace in the world with an audience of more than 1.2 billion unique visitors including 720 million via mobile.
· On June 19, 2017, Altice N.V. announced it had closed the sale of its Belgium and Luxembourg businesses, SFR BeLux (Coditel Brabant BVBA and its subsidiary Coditel S.à.r.l) to Telenet.
· On June 12, 2017, Altice N.V. announced a multiyear partnership with Netflix which will lead to Netflix's content being made available to Altice customers to all eligible devices in France, Portugal, Israel and Dominican Republic.
· On May 23, 2017, Altice N.V. announced the transformation from a holding company with a collection of different assets and brands around the world, to a unified global group with one single brand - Altice. The Altice name, brand and new logo will replace the current brands at each of Altice's operating companies, including Optimum and Suddenlink, and it is expected that the commercial brands will have completed the transition process by the end of the second quarter of 2018. The business brands will transition to Altice Business.
· During May and June 2017, Altice N.V. acquired an aggregate number of 19,921,425 SFR Group shares in private off-market transactions. In consideration for these acquisitions, Altice delivered common shares A, which it held previously as treasury shares. Following these transactions and the relinquishing of double voting rights by Altice N.V.'s indirect subsidiary Altice France S.A., at the end of June 2017 the Altice Group held directly and indirectly 94.3% of the capital and voting rights of SFR Group.
Nick Brown: +41 79 720 1503 / nick.brown@altice.net
Arthur Dreyfuss: +41 79 946 4931 / arthur.dreyfuss@altice.net
The company will host a conference call and webcast tomorrow, July 28, 2017, to discuss the results at 3:00pm CEST (2:00pm UK time, 9:00am EDT)
Webcast live: https://pgi.webcasts.com/starthere.jsp?ei=1155280&tp_key=1e96222d73
Dial-in access telephone numbers:
France: +33 1 76 77 25 06
UK: +44 330 336 9412
USA: +1 719 325 2226
2321 Rosecrans Avenue. Suite 2200
90245 El Segundo Stati Uniti