ALTICE - FULL YEAR 2015 PRO FORMA[1] CONSOLIDATED RESULTS

  • Best Group KPIs in Q4 since Altice IPO with positive operational momentum in each major market
    • Overall Altice Group added 270k postpaid mobile customers and 130k fiber broadband customers
    • France: mobile subscriber growth (+140k B2C postpaid net additions) and stabilized fixed base (-6k) with continued fiber customer net additions (+78k)
    • Portugal: continued convergent 4P/5P (+19k) and postpaid mobile subscriber growth (+49k)
    • Suddenlink: strong customer relationship (+13k) and broadband subscriber growth (+21k)
    • Dominican Republic added 7k fiber customers and a record 42k postpaid mobile net additions while Israel reports lowest cable customer net loss since Altice IPO (-4k)
  • Operational momentum setting basis for revenue trend improvement in 2016
  • Strong full year financial performance in 2015 with Group adjusted EBITDA up 18% and Operating Free Cash Flow up 33% (16% and 35% ex-Suddenlink, respectively)  
  • Achieved 2015 guidance for Numericable-SFR and Altice International[2]
  • Group adjusted EBITDA margin expanded by 5.8 pp YoY to 38.1% in 2015 as efficiency measures progress; all major businesses with best-in-class margins compared to their peer group
  • Accelerated re-investments into fixed and mobile networks, and selective content:
    • France: leading 4G mobile site build out in France in Q4 2015 and 2016 YTD giving leading 2015 coverage progression (from 33% end-2014 to 64%) and expanded fiber broadband coverage by 1.3m fiber homes passed in 2015 to total 7.7m, retaining #1 fiber coverage in France (targeting 22m homes passed by the end of 2022)
    • Portugal: build-out of national fiber network, ramp up in Q4 2015 with plan to cover an additional 3m households and businesses at a rate of 600k p.a. over the next five years
    • Suddenlink: Operation GigaSpeed - well-advanced network upgrade program to deliver next-generation broadband services across the footprint by 2017
    • Acquisition of differentiated content and sports rights in both France and Portugal to complement communications services
  • Successful Altice Group transformation including completion of Portugal Telecom and entry into the US market with Suddenlink and CVC (announced) as well as strategic partnership with NextRadioTV
  • Robust, diversified and long-term capital structure
    • Increased proportion of fixed rate debt of Altice (Lux) Europe Consolidated to 83% from 68% at Q3 2015
    • Maturity of €1.1bn of Corporate Facility extended by two years (March 2019)

 

March 15, 2016: Altice NV (Euronext: ATC NA and ATCB NA), today announces financial and operating results for the year ended December 31, 2015.

Strong pro forma adjusted EBITDA and Cash Flow growth

  • Group Revenue €17,495m, down 0.1% YoY[3]
    • €11,038m France Revenue, down 3.5%
    • €4,324m International Revenue, down 0.4%[4]
    • €2,181m US (Suddenlink) Revenue, up 24.2%[5]
    • Sequential revenue trends and lead key performance indicators pointing to improving Group revenue trend outlook for 2016
  • Group adjusted EBITDA €6,671m, up 17.6% YoY[6]:
    • €3,860m France adjusted EBITDA, up 20.2%  
    • €1,933m International adjusted EBITDA, up 7.7%[7]
    • €889m US (Suddenlink) adjusted EBITDA, up 29.3%[8]
  • Group adjusted EBITDA margin expanded by 5.8% pts to 38.1%; best-in-class margin improvement with further upside
    • France margin expanded by 6.9% pts to 35.0%
    • International margin expanded by 3.3% pts to 44.7% (Portugal Telecom margin expanded by 4.3% pts to 41.2% - sector-leading margins among European PTOs[9])
    • US Suddenlink margin expanded by 1.5% pts to 40.7% - US cable sector-leading margin in Q4[10]
  • Group Operating Free Cash Flow[11] of €3,550m, up 33.3% YoY[12] with growth contributions from all reporting segments

 

Key Strategic Update

  • €2.5bn dividend paid by Numericable-SFR on December 22, 2015. Altice subsequently repaid vendor note (€1,977bn) put in place for the key acquisition of Vivendi's remaining 20% interest in Numericable-SFR (Altice held 78.14% of the share capital of Altice at the end of December, 2015)
     
  • US: Completed acquisition of 70% stake in Suddenlink on December 21, 2015
     
  • US: Acquisition of  Cablevision pending regulatory reviews; expected to close in Q2 2016
     
  • Completed sale of Cabovisao and ONI to Apax France on January 19, 2016
     
  • Altice Media: Completed acquisition of stake in NextRadioTV through strategic partnership with company founder and major shareholder;
    • Tender offer closed and squeeze out of minority shareholders completed on February 1, 2016
       
  • On January 20, 2016, Altice announced the creation of Altice Labs, based in Portugal, leading the innovation agenda for all Altice Group's operations.  
     
  • In France, acquired a 5MHz block of paired spectrum in the 700MHz band for €477m (including fees) on November 17, 2015.

Dexter Goei, Chief Executive Officer of Altice, said: "We end 2015 delivering the best quarterly KPIs since our IPO with all major operations seeing significant improvements as a result of operational focus, integration and investments. These improvements are in the context of Group adjusted EBITDA up 18% and Operating Free Cash Flow up 33% for 2015 (pro forma including Suddenlink), significantly higher than peers over the past year, with improving revenue trends in each local market.

We have strengthened our management team and during 2016 we will continue to be very focused on further improving operational and financial performance, integrating the businesses we have acquired and pursuing the efficiency targets we have set out. Altice Group companies have best-in-class margins with further upside as we continue our successful strategy based on fixed/mobile and media convergence and the implementation of best practices and efficiencies across all of our operations.    

We remain confident that accelerating investments in both fiber and 4G+ infrastructure, as well as higher value generation through focus on triple- and quadruple play bundles enhanced with differentiated content offerings, will continue to deliver superior results."

  

Guidance 2016

For 2016 we expect an improving trend in Altice Group revenue on a consolidated basis (under the current Group perimeter at constant currency). We expect mid-single digit growth in Group Adjusted EBITDA and Operating Free Cash Flow growth flat to slightly down reflecting accelerated investments.

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

Conference call details

The company will host a conference call and webcast to discuss the results at 2.30pm CEST, 9.30am EST today.

Webcast live: http://edge.media-server.com/m/p/wcqk5kpa

Conference call dial in:

France: +33 1 76 77 22 28

UK: +44 20 3427 1903

USA: +1 646 254 3360


[1] Financials shown in these bullet points are pro forma defined here as results of the Altice NV Group as if all acquisitions had occurred on 1/1/14, including Portugal Telecom and Suddenlink (and excluding Cabovisao, ONI, La Reunion and Mayotte mobile activities as if the disposals occurred on 1/1/14). Segments shown on a standalone reporting basis, Group figures shown on a consolidated basis

[2] Numericable-SFR FY 2015 guidance: adjusted EBITDA >€3.85 bn and EBITDA-Capex >€2.0 bn; Altice International FY 2015 guidance: adjusted EBITDA >€1.925 bn and capex / sales in the high teens (Altice International guidance updated as part of Q3 2015 results following completion of Portugal Telecom acquisition)

[3] Group Revenue declined 3.2% on a constant currency (CC) basis

[4] International Revenue declined 4.2% on CC basis

[5] US (Suddenlink) Revenue increased 3.7% on CC basis to $2,420m in local currency

[6] Group adjusted EBITDA increased 13.8% on CC basis

[7] International adjusted EBITDA increased 3.2% on CC basis

[8] US (Suddenlink) adjusted EBITDA increased 8.0% on CC basis

[9] Comparing average domestic margins of European PTOs (Public Telecommunications Operators) including BT, Deutsche Telekom, Elisa, KPN, Orange, Proximus, Swisscom, TDC, Telefonica, Telekom Austria, Telenor and TeliaSonera

[10] Comparing average of Comcast (Cable Communications business only), Charter, TWC, Cablevision, Mediacom margins.

[11] Defined as EBITDA less Capital Expenditure, excluding spectrum capex of €477m in France

[12] Group Operating Free Cash Flow increased 29.4% on CC basis 

FY 2015 Results


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX 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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