Altice N.V. - Q2
2017 Pro Forma[1] 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[2] 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);
- Optimum revenue growth of +2.9% YoY on a CC
basis;
- Suddenlink revenue growth +3.8% YoY on a CC
basis;
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[3] 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[4] reporting
standard).
· Altice Group
Operating Free Cash Flow[5] 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.
Michel Combes, Chief Executive
Officer of Altice N.V., said: "Our progress in
the second quarter of 2017 shows the Altice vision of convergence
really taking shape. Our extensive deployment of fiber and super
fast mobile broadband networks, innovations from Altice Labs,
investment in content and monetization of digital and TV
advertising is driving Altice's growth at increasingly higher
levels of efficiency.
In France, we continue to
significantly improve the quality of SFR's mobile network,
including reaching our 2017 target for 90% 4G population coverage
six months early, supporting reduced churn and new customer growth.
We are continuously expanding our content offers, as well as
focusing on improving customer service and accelerating our fiber
deployment in new areas to support a further improvement in our
fixed business trends. And at the same time we have begun the next
phase of the company's transformation which is proceeding according
to our plan.
Altice USA continues to grow at
an accelerated pace with further margin expansion as we continue to
execute on our efficiency targets. We have also successfully
executed on the initial public offering of Altice USA which has
provided us with a great platform for the next phase of
growth.
Lastly in Portugal, we are
continuing with MEO's accelerated nationwide fiber deployment, as
well as diversifying more into the media segment with the
announcement of the acquisition of Media Capital, just as we have
done very successfully with our media acquisitions in
France."
July 27, 2017:
Altice N.V. (Euronext: ATC NA and ATCB NA), today announces
financial and operating results for the quarter ended June 30,
2017.
All major markets progressing as
expected in Q2
· Altice Group
Revenue €5,957m, up +2.7% YoY[6]:
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[7]:
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);
- US Optimum margin increased by +8.4% pts to 41.2%
under IFRS (40.8% under GAAP);
- US Suddenlink margin expanded by +2.6% pts to
48.2% under IFRS (47.5% 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.
Other Significant Events
· 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.
Contacts
Chief Investor Relations
Officer
Nick Brown: +41 79 720 1503 / nick.brown@altice.net
Chief Communications
Officer
Arthur Dreyfuss: +41 79 946 4931 / arthur.dreyfuss@altice.net
Conference call
details
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
Confirmation Code:
9369116
Altice NV Q2 2017 Results
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Altice NV via Globenewswire
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