Altice NV: Third Quarter 2016 Pro Forma Results
November 10 2016 - 12:00PM
ALTICE N.V. - THIRD QUARTER 2016
PRO FORMA RESULTS
-
Best momentum across Altice
Group since IPO - execution focus and investments in networks and
convergence are paying off:
-
Return to revenue growth with
all major markets contributing to improvement, expanding margins,
growing cash flow conversion.
-
Demonstrating success of Altice
Model, reinvesting growing cash flows in infrastructure and
content, improving customer experience, churn and KPIs. Rapid
de-leveraging to facilitate further investments in growth
platform.
-
Balanced footprint in Europe
and USA with growth set to accelerate;
-
France another material revenue
improvement in Q3 2016 declining 2.0% YoY in Q3 2016 pro forma for
recent acquisitions of media assets excluding regulatory
impacts (2.4% decline including these impacts) and return to
EBITDA growth. FY 2016 revenue trend still expected to be better
than FY 2015 (-3.5% YoY) as revenue ex-media assets declined 2.6%
YoY in Q3 (vs. -6.1% and -4.6% in Q1 and Q2 2016
respectively);
-
Altice USA better than expected
results with stronger revenue growth (including the highest cable
revenue growth for Optimum since 2014 at +2.7% YoY, Suddenlink
+6.7% YoY in constant currency), significant margin improvement
(+8.2pp YoY for Optimum and +5.4pp YoY for Suddenlink) and
accelerated network investments. Building best-in-class US cable
system to sustain growth (Group has c.41% exposure to large,
growing US market);
-
Portugal revenue back to growth
for the first time since 2008 in September and overall for Q3 2016
excluding regulatory impacts (+1.2% YoY); Reported revenue
flat YoY (0.0%) in Q3 2016 (vs. -3.0% in Q2 2016, -3.5% in Q1 2016
and -7.3% in FY 2015) with fiber growth still
accelerating.
-
Operational momentum increases
confidence in expectation for continued improvement in revenue and
EBITDA trends for the remainder of 2016:
-
France (SFR Group) - Focus on
improving network quality, customer experience, retention processes
and content enriched service bundles, which combined with improving
market dynamics and company transformation is expected to drive
further significant improvements in revenue and EBITDA
trends
-
US (Optimum) - Growth still
running ahead of initial expectations. Remain confident in
efficiency targets with higher cash flow facilitating reinvestment
to drive better customer experience (whole network now offering
300/350Mbps broadband speeds);
-
US (Suddenlink) -
Industry-leading margins with focus remaining on customer retention
and improving churn. Integration with Optimum progressing well
(single management team with one commercial strategy) and Project
GigaSpeed network upgrades remain on track;
-
Altice N.V. Group Adjusted
EBITDA grew 8.5% YoY on a CC basis driven by the very strong growth
of Altice USA (Optimum Adjusted EBITDA +33.1% YoY, Suddenlink
+20.8% YoY on a CC basis);
-
Altice N.V. Operating Free Cash
Flow grew 13.9% YoY on a CC basis in Q3 driven by the very
strong growth of Altice USA (Optimum and Suddenlink growing +135.1%
and +57.0% YoY on a CC basis respectively).
-
Robust, diversified and
long-term capital structure: during 2016, Altice has refinanced
just over EUR 21 billion equivalent of its debt year to date,
extending the weighted average life of the Group's debt by 18
months while keeping the average cost of debt constant.
-
Reiterated FY 2016 Altice N.V.
Group guidance, including our expectation of an improving trend in
Altice Group revenue on a consolidated basis (as given on 15 March
2016 under the prior Group perimeter excluding Optimum and acquired
content and media assets, at constant currency). On this basis, we
also still expect mid-single digit growth in Group Adjusted EBITDA
and Operating Free Cash Flow growth flat to slightly down
reflecting accelerated investments. This includes our expectation
of growth in the Adjusted EBITDA contribution from France
YoY.
Michel Combes,
Chief Executive Officer of Altice, said: "We are extremely
pleased to see our focus on execution is paying off, delivering
substantially better revenue and financial performance across all
our major markets including US, France and Portugal. The efficiency
savings we are achieving are fueling higher investment in
infrastructure and content, and improving customer experience,
which is now driving the growth of our business. Altice has fully
transformed into a leading transatlantic, converged telecoms and
media company and quarter after quarter we find ourselves in a
stronger position.
Altice USA with Optimum and
Suddenlink has seen a further acceleration in revenue growth while
simultaneously improving margins materially, driven by accelerated
investments in upgrading our networks and services.
Altice France with SFR is
progressing with our innovative strategy based on the convergence
of telecoms, media, content and advertising, enabling us to offer
more and more value to our customers. We are in the middle of our
transformation of SFR and remain confident performance will
continue to improve significantly from here. Our fiber expansion
and accelerated 4G/4G+ network investment program is putting us in
a prime position to return quickly to sustainable growth.
Altice Portugal with MEO returning
to growth for the first time since 2008 allows us to continue to
invest to reach the whole country with fiber services by 2020.
All of which shows Altice is able
to achieve efficiency savings, invest massively and grow at the
same time which we will continue to focus on across the whole
Group."
November 10,
2016: Altice N.V. (Euronext: ATC NA and ATCB NA), today announces
financial and operating results for the quarter ended September,
2016.
All major markets
contributing to improvement in Altice's financial performance in
Q3
-
Altice N.V. Group Revenue €5,889m, flat 0.0%
YoY:
-
€2,802m France (SFR) Revenue, down 2.4%.
-
€1,442m US (Optimum) Revenue, up 2.2% on a
reported basis; increase of 2.7% on a CC basis to $1,610m in local
currency.
-
€578m US (Suddenlink) Revenue, up 6.2% on a
reported basis; increase of 6.7% on a CC basis to $646m in local
currency.
-
€1,069m Altice International Revenue, down
1.1%.
-
Altice N.V. Group Adjusted EBITDA €2,326m, up
8.3% YoY:
-
€1,041m France (SFR) Adjusted EBITDA, up
0.6%.
-
€516m US (Optimum) Adjusted EBITDA, up 32.5% on
a reported basis; increase of 33.1% on a CC basis to $576m in local
currency.
-
€268m US (Suddenlink) Adjusted EBITDA, up 20.2%
on a reported basis; increase of 20.8% on a CC basis to $300m in
local currency.
-
€489m Altice International Adjusted EBITDA, down
3.1%.
-
Altice N.V. Group Adjusted EBITDA margin
expanded by 3.0% pts YoY to 39.5%:
-
France (SFR) margin increased by 1.1% pts to
37.1% due to ongoing efficiencies programs.
-
US (Optimum) margin expanded by 8.2% pts to
35.8%.
-
US (Suddenlink) margin expanded by 5.4% pts to
46.4%.
-
Altice International margin decreased by 0.9%
pts to 45.7%;
-
Altice N.V. Group Operating Free Cash
Flow of €1,377m, up 13.6% YoY; up 13.9% on a CC basis.
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 today to discuss the results at 7.30pm CET (6.30pm
UK time, 1.30pm EST)
Webcast live:
http://edge.media-server.com/m/p/jvcurypz
Dial-in access telephone
numbers:
France: +33 1 76 77 22 75
UK: +44 203 043 2002
USA: +1 719 325 2202
Confirmation
Code: 3128600
Altice NV Q3 2016 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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