2 November 2017
Altice N.V. - Q3
2017 Pro Forma Results
· Altice
continued to focus on executing on its strategy to create the best
customer experience, the best infrastructure and the best content
during the third quarter of 2017.
· Revenue
growth and margin expansion driven by strong Altice USA performance
with substantial headroom for further improvement across all
operations:
o Altice N.V. Group revenue
growth of +0.3% growth YoY on a constant currency (CC) basis in Q3
2017;
o Altice USA revenue growth of
+3.2% YoY on a CC basis, and growth in Israel of +3.1% YoY on a CC
basis, offset by slight revenue decline in France of -1.3% YoY and
revenue decline in Portugal of -3.1% YoY due to mismanagement of
rate events.
· Altice Group
Adjusted EBITDA grew +4.2% on a CC basis driven by the strong
growth of Altice USA +18.9% YoY on a CC basis under IFRS:
o Altice Group Adjusted EBITDA
margin increased by +1.5 percentage points YoY to 41.0%;
o Altice USA reached an Adjusted
EBITDA margin of 44.9% in Q3 (+6.1% pts YoY vs. 38.8% in Q3 2016),
France margin decreased by -0.7% pts to 36.6% and Portugal margin
increased +0.9% pts to 46.8%.
· Altice Group
Operating Free Cash Flow grew +6.2% on a CC basis in Q3 driven
by the strong growth of Altice USA +13.8% on a CC basis under
IFRS.
· Progressing
with fastest deployment of state-of-the-art fiber (FTTH) technology
planned across Europe / U.S., targeting a global run-rate of c.4+
million FTTH homes passed p.a. by 2018:
o Leading fiber operator in
France reaching over 10 million homes passed at the end of Q3
(+433k QoQ including FTTH acceleration), targeting nationwide
coverage by 2025;
o Altice USA's fiber-to-the-home
(FTTH) deployment is on track to reach one million homes
constructed by year end 2018 (one million homes to be designed by
year end 2017);
o Leading fiber (FTTH) operator
in Portugal reaching 4 million homes passed at the end of Q3 (+177k
QoQ), targeting nationwide coverage by 2020.
· Significant
progress expanding into the media and advertising space;
integrating NextRadioTV into Altice Media Group, combining Teads
and Audience Partners with Altice's telecoms businesses (building
the future of cross-screen advertising) and pending Media Capital
acquisition.
· Altice One
launch - new home entertainment hub to support significantly
improved video, broadband and phone experience for Altice USA
customers.
· Further
strengthening and simplification of diversified capital structure,
including taking SFR private and significant refinancing across
Altice's SFR and Altice International credit silos. Agreement for
SFR Group to acquire French Overseas Territory telecom business
from Altice International.
Michel Combes, Chief Executive
Officer of Altice N.V., said: "Our priority is
execution on our clear long-term strategy: to be the number one
operator for the quality of our wholly-owned telecoms
infrastructure and the number one convergence player, providing the
best customer experience with best-in-class financial
performance.
Revenue growth and margin
expansion for Altice Group are currently being driven by the strong
performance of Altice USA. The launch of Altice One is just the
beginning of a new, better and simple experience for our customers
as we look to become the connected home provider of choice. And as
we invest more in our fiber project and digitalisation we will
continue to improve service metrics, further reduce churn and see
additional efficiency savings.
In Europe, we are intensifying
the operational focus to improve customer experience and return
France and Portugal to growth. To support the turnaround here we
are expanding our fiber FTTH coverage at an accelerated pace as
well as continuing to invest in improving our mobile network
quality and providing differentiated content bundles.
Lastly, we are also quickly
expanding into the media and advertising space which are our
fastest growing businesses in the Group today."
November 2,
2017: Altice N.V. (Euronext: ATC NA and ATCB NA), today announces
financial and operating results for the quarter ended September 30,
2017.
Key financial figures in
Q3
· Altice Group
Revenue €5,755m, increase of +0.3% YoY on a constant currency (CC)
basis; down -1.8% YoY on a reported basis:
o €2,757m France (SFR) Revenue,
down -1.3%;
o €1,970m Altice USA Revenue,
increase of +3.2% on a CC basis to $2,327m in local currency; down
-2.5% on a reported basis;
o €566m Portugal Revenue, down
-3.1%.
· Altice Group
Adjusted EBITDA €2,358m, increase of +4.2% on a CC basis; up +1.8%
YoY on a reported basis:
o €1,009m France (SFR) Adjusted
EBITDA, down -3.2%.
o €885m Altice USA Adjusted
EBITDA, increase of +18.9% on a CC basis to $1,042m in local
currency; up +12.8% on a reported basis;
o €265m Portugal Adjusted
EBITDA, down -1.3%.
· Altice Group
Adjusted EBITDA margin expanded by +1.5% pts YoY to 41.0%:
o France (SFR) margin decreased
by -0.7% pts to 36.6%.
o Altice USA margin increased
+6.1% pts to 44.9% under IFRS (44.1% under GAAP reporting
standard);
- US Optimum margin increased by +7.9%
pts to 43.7% under IFRS (42.9% under GAAP);
- US Suddenlink margin increased by
+1.4% pts to 47.8% under IFRS (47.1% under GAAP).
o Portugal margin increased by
+0.9% pts to 46.8%.
· Altice Group
Operating Free Cash Flow of €1,411m, increase of +6.2% on a CC
basis; up +2.9% YoY on a reported basis.
2017 Guidance
For 2017, Altice Group revenue is expected to grow
on a pro forma organic basis. Group Adjusted EBITDA is expected to
grow at the low end of the guidance range for high-single digit
growth (consistent with year-to-date EBITDA growth of c.6% YoY on a
CC basis). Group capex is expected to be c.€4bn.
Other Significant Events
· On November
2, 2017, Altice Caribbean entered into a term sheet agreement with
SFR Group to acquire 100% of the share capital of Altice Blue Two
(holding company of the telecom business in the French Overseas
Territory). The implementation of this transaction is subject to
technical conditions precedent, including the approval of the
relevant corporate bodies at the level of Altice Caribbean and SFR
Group. The closing of this transaction is expected to occur before
the end of Q1 2018 with the transfer of the French Overseas
Territory assets from the Altice International restricted group to
the SFR restricted group.
· On October
9, 2017, Altice N.V. announced the successful refinancing of a
portion of the existing debt of its SFR and Altice International
credit pools. SFR and Altice International priced €4bn of new Term
Loans, and Altice International also priced €675m of Senior
Unsecured Notes with a coupon of 4.75%, now the lowest coupon in
the Altice Group.
· On August
28, 2017, Altice N.V. announced the start of a programme to
repurchase shares with an aggregate market value equivalent of up
to €1bn, and that would end no later than August 31, 2018. As part
of this programme, Altice intends to purchase up to €1bn of Altice
common shares A and Altice common shares B on Euronext Amsterdam,
which it intends to cancel upon repurchase and/or hold in treasury.
On October 16, 2017, Altice N.V. announced that this share
repurchase programme had been suspended and that a new programme to
repurchase shares also in closed periods commenced and would
continue until today, November 2, 2017 (inclusive). This share
repurchase programme has been conducted within the parameters
prescribed by the Market Abuse Regulation 596/2014 and the safe
harbour parameters prescribed by the Commission Delegated
Regulation 2016/1052 for buyback programmes. On November 3, 2017,
Altice will resume its discretionary share repurchase activity.
During the third quarter, Altice purchased approximately 7.7m
shares of Altice common shares A and 0.5m of common shares B for a
total of €147.0m. Up until the end of October 2017, Altice
purchased a cumulative amount of approximately 16.4m shares of
Altice common shares A and 1.1m of common shares B for a total of
€307m. These share repurchase programmes form part of Altice's
strategy to create superior, long-term value for all of its
shareholders.
· On August
10, 2017, Altice N.V. announced the crossing of the 95% ownership
threshold in SFR Group, increasing its stake to 95.9% having
entered into several agreements relating to the acquisition of SFR
Group shares through exchanges against Altice N.V. common shares A.
Altice also announced on this date its intention to file with the
French financial market authority (AMF) a buyout offer followed by
a squeeze-out for the remaining SFR Group shares for a price of
€34.50 per share (filed subsequently on September 4, 2017). On
September 19, 2017, Altice announced the AMF had granted its
clearance decision. On October 9, 2017, Altice announced the
implementation of the squeeze-out of the SFR Group shares at the
price of the buyout offer, i.e. a cash payment of €34.50 per SFR
Group share, net of all costs. The SFR Group shares have therefore
been delisted from Euronext Paris.
Contacts
Head of Investor
Relations
Nick Brown: +41 79 720 1503 / nick.brown@altice.net
Head of
Communications
Arthur Dreyfuss: +41 79 946 4931 / arthur.dreyfuss@altice.net
About Altice
Founded in 2001 by entrepreneur Patrick Drahi,
Altice is a convergent global leader in telecoms, content, media,
entertainment and advertising. Altice delivers innovative,
customer-centric products and solutions that connect and unlock the
limitless potential of its over 50 million customers over fiber
networks and mobile broadband. The company enables millions of
people to live out their passions by providing original content,
high-quality and compelling TV shows, and international, national
and local news channels. Altice delivers live broadcast premium
sports events and enables millions of customers to enjoy the most
well-known media and entertainment. Altice innovates with
technology in its Altice Labs across the world. Altice links
leading brands to audiences through premium advertising solutions.
Altice is also a global provider of enterprise digital solutions to
millions of business customers. Altice is present in 10 territories
from New York to Paris, from Tel Aviv to Lisbon, from Santo Domingo
to Geneva, from Amsterdam to Dallas. Altice (ATC & ATCB) is
listed on Euronext Amsterdam. For more information, visit
www.altice.net
Altice NV Q3 2017 Pro Forma
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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