“There is nothing in this direction.” A source “very well placed” cited by our colleagues Electron Libre categorically denies any discussion between Free and Orange for a possible takeover of the latter by the former.
A denial that has nothing surprising as the scenario of early evoked by the Journal du Dimanche seems unlikely. It is true that following the failure of the acquisition of Bouygues Telecom, Stephane Richard still believes that market consolidation is essential to enable telecom operators to find room to maneuver through the end of the price cuts and to smooth investment therefore ever.
then a new scenario would have emerged as the JDD which did not cite its sources. “Everyone is talking and weeks one, the latter never explored scenario, a redemption by Orange Free circulates in the minds of operators. Especially as rare in this area, their two bosses, and Stéphane Richard Xavier Niel, get along very well. this would allow the Free to take a position at Orange, as what was Martin Bouygues. in addition, the founder of Free holds a 15% stake in Telecom Italia, dedicated to unite futures in Orange. It could well be the backbone of a double consolidation, first in France and then in Europe, “it said.
As we mentioned on Monday, yet difficult to picture book such a scenario for several reasons: the operational complexity is the same as the weight of Free on the mobile (12 million subscribers) or Free the worst seen market share in the fixed where it is second behind Orange with 6 million customers. We not imagine the complexity of the asset disposal plan. On the other hand, they said the same thing with BouyguesTel …
In addition, Free is in excellent financial health and has absolutely no reason to look closer together. Iliad, parent company of Free, generated in 2015 a net profit of 335 million euros, up 20.3%, thanks to an increase in the number of subscribers, both in mobile and fixed network.
In mobile, the growth of Free Mobile continues unabated despite offensives from competitors with 1.6 million net new subscribers terminations in 2015, bringing the subscriber base to 11 68 million against 10 million a year earlier (market share of 17% against 14% in 2015).
in early April, the group of Xavier Niel has also clearly emphasized its capacity for growth in a market 4. in short, Free just does not pressure
“Free known for 4 years very strong growth. the Group has more than doubled its turnover (+ 108%), increased by + 78% and its EBITDA more than tripled its subscriber base with additional 13 million subscribers. the Iliad Group has the ambition to continue its strong growth by supporting the dynamics of an industrial heritage and financial strengthened considerably since 2015, a very strong balance sheet with a debt ratio of just 0,80x Ebitda, increased profitability with an EBITDA up 16% on 2015, a market share steadily rising (17 % in Mobile and 24% in fixed broadband and very high speed). “
The message is clear. And even if Xavier and Stephane get along pretty well, even though both groups are already bound by a roaming agreement, it is not clear which would push the boss Iliad to abandon her baby, who jealously guards Free and has refused to abandon its capital controls.
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