ALTICE N.V. - Q1 2017 PRO FORMA[1] RESULTS

  • Accelerated momentum across Altice Group continued in Q1 2017 with all markets driving profitable growth - FY 2017 guidance reiterated:
    • Group revenue growth accelerated again to +3.2% YoY[2] (vs. +2.7% in Q4 2016);
    • Stable revenues again in France (+0.6% YoY[3]);
    • Revenue growth in Altice USA +3.8% YoY on a constant currency (CC) basis (vs. FY 2016 +3.6% and FY 2015 +1.7% YoY on a pro forma basis);
      • Optimum revenue growth of +3.2% YoY on a CC basis;
      • Suddenlink revenue growth +5.3% YoY on a CC basis;
    • Stable revenues again in Portugal (+0.2% YoY[4]);
    • Further acceleration in revenue growth in Israel to +4.4% YoY on a CC basis;
    • All other subsidiaries delivering growth.
  • Delivering on global commitment to rapidly build state-of-the-art fiber networks:
    • Leading fiber[5] operator in France reaching 9.6 million homes passed at the end of Q1 (+318k QoQ);  
    • 5-year "Generation GigaSpeed" commenced, upgrading Altice USA's network from fiber HFC to FTTH to ultimately deliver >10Gbps broadband speeds across entire Optimum footprint and part of Suddenlink footprint;  
    • On track to become the leading fiber operator in Portugal reaching 3.2 million homes passed at the end of Q1 (+248k QoQ, target c.4m homes end-2017);
  • Altice Group Adjusted EBITDA grew +9.5% YoY (+7.5% on a CC basis) in Q1 driven by the strong growth of Altice USA (Optimum Adjusted EBITDA +30.7% YoY, Suddenlink +19.6% YoY on a CC basis). Altice USA reached an Adjusted EBITDA margin of 41.4% on a combined basis in Q1 (+7.5 % pts YoY vs. 33.9% in Q1 2016).
  • Altice Group Operating Free Cash Flow[6] grew +21.4% YoY (+18.8% on a CC basis) in Q1 driven by the strong growth of Altice USA (Optimum and Suddenlink grew +56.2% and +41.0% YoY on a CC basis, respectively).
  • Robust, diversified and long-term capital structure: Altice has refinanced over €29.6 billion equivalent of its debt in the last twelve months, extending the weighted average life of the Group's debt by 20 months (6.5 years end-Q1), while at the same time reducing the average cost of debt.

Michel Combes, Chief Executive Officer of Altice, said: "We begin 2017 with another quarter of successful execution and accelerated growth. We continue to see the benefits of being a leading, transatlantic converged communications player with these results further validating the Altice Model. That is, reinvesting growing cash flows and attracting the best talent to provide the best customer experience, the best infrastructure, and the best content.  

In particular, we are delivering on our major global commitment to fiber with rapid network deployments progressing very well across the Group. Fiber is the future and, for Altice, that future is now.

In France, we have also substantially improved the quality of SFR's mobile network, including reaching 88% 4G population coverage, and have significantly expanded our content offers, supporting new customer growth. As we execute on the next phase of the company's transformation and focus on dramatically improving customer service, we are confident we will see a further improvement in fixed trends in 2017 as well.

Altice USA continues to grow faster than Suddenlink and Optimum had been growing prior to our acquisitions of those businesses with improved margins driving significant cash flow growth for the Group. We continue to execute on our efficiency and investment targets and we are very much looking forward to unlocking the next phase of growth." 

May 11, 2017: Altice N.V. (Euronext: ATC NA and ATCB NA), today announces financial and operating results for the quarter ended March 31, 2017.

All major markets driving continued profitable growth in Q1

  • Altice Group Revenue €5,932m, up +3.2% YoY[7]:
    • €2,705m France (SFR) Revenue, up +0.6%.
    • €2,166m Altice USA Revenue, up +7.4% on a reported basis; increase of +3.8% on a CC basis to $2,306m in local currency;
      • €1,545m US Optimum Revenue, up +6.8% on a reported basis; increase of +3.2% on a CC basis to $1,645m in local currency;
      • €621m US Suddenlink Revenue, up +9.0% on a reported basis; increase of +5.3% on a CC basis to $661m in local currency.
    • €573m Portugal Revenue, up +0.2%.
  • Altice Group Adjusted EBITDA €2,243m, up +9.5% YoY[8]:
    • €820m France (SFR) Adjusted EBITDA, down -5.1%. 
    • €896m Altice USA Adjusted EBITDA, up +31.2%; increase of 26.7% on a CC basis to $954m in local currency;
      • €597m US Optimum Adjusted EBITDA, up +35.3% on a reported basis; increase of 30.7% on a CC basis to $635m in local currency;
      • €299m US Suddenlink Adjusted EBITDA, up +23.8% on a reported basis; increase of 19.6% on a CC basis to $319m in local currency.
    • €263m Portugal Adjusted EBITDA, down -5.1%.
  • Altice Group Adjusted EBITDA margin expanded by +2.2% pts YoY to 37.8%:
    • France (SFR) margin decreased by -1.8% pts to 30.3%.
    • Altice USA margin increased +7.5 pts to 41.4%;
      • US Optimum margin increased by +8.1% pts to 38.6%;
      • US Suddenlink margin expanded by +5.8% pts to 48.2%.
    • Portugal margin decreased by -2.6% pts to 45.9%.
  • Altice Group Operating Free Cash Flow of €1,400m, up +21.4% YoY; up +18.8% 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, May 11, 2017, to discuss the results at 3:00pm CEST (2:00pm UK time, 9:00am EDT)

Webcast live: http://edge.media-server.com/m/p/ugcdnnhs

Dial-in access telephone numbers:

France: +33 1 76 77 22 57

UK: +44 330 336 9411

USA: +1 719 325 2213

Confirmation Code: 5570998

[1] Financials shown in these bullet points are pro forma defined as results of the Altice N.V. Group as if all acquisitions had occurred on 1/1/16, including Cablevision (Optimum), NextRadioTV and Altice Media Group France (and excluding Belgium & Luxembourg and Newsday Media Group as if the disposals occurred on 1/1/16). Segments shown on a pro forma standalone reporting basis, Group figures shown on a pro forma consolidated basis. Financials include the contribution from the insourcing of Parilis and Intelcia in Q1 2017 (not in Q1 2016). 

[2] In constant currency, Altice N.V. Group revenue grew by +1.5% YoY in Q1.

[3] Altice France revenue grew 0.8% YoY excluding retail roaming EU tariffs impacts in May 2016.

[4] Altice Portugal revenue grew 0.9% YoY excluding regulatory impacts.

[5] FTTB and FTTH homes passed.

[6] Operating Free Cash Flow growth defined here as growth in EBITDA-capex

[7] Group Revenue grew +1.5% on a constant currency (CC) basis.

[8] Group Adjusted EBITDA increased 7.5% on a CC basis.

Altice NV Q1 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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