The group of Patrick Drahi, based in Amsterdam, has announced a fall of 1.07% of its turnover from January to June, to 11.72 billion euros, driven mainly decline in sales of its flagship French, SFR, who finished the half with a net loss of 84 million euros.
The second quarter of the year was, however, turned out to be better than the first, with a decline of 1.42% of sales for the entire group, to 5.92 billion euros and 2.1% for its French subsidiary, to 2.72 billion euros, superior performance analyst expectations.
In the first three months of the year, the decline in activity was 2.7% for Altice, to 4.26 billion euros, and 6.1% for SFR, to 2.57 billion.
According to the investment bank Bryan Garnier, the French operator has announced the results of which “ sales and gross operating profit (EBITDA) were slightly above expectations “in the quarter, but the group is” still fight “regarding the activity for the general public,” especially in mobile telephony ” .
By the way, the group confirmed its outlook for the current year, still expect an improvement in sales and growth of around 5% of its Ebitda adjusted in 2016, at constant scope.
– ‘difficult quarter’ for SFR –
The results were welcomed by investors since the SFR title took 10.20% on the Paris Bourse to 1:00 p.m. (1100 GMT) , to 23.07 euros, while the action Altice climbed 13.60% in Amsterdam, to 14.83 euros.
“ The improving trend ” to the activity for professionals partly offsets the “ low performance ” for individuals who however, should “ improve in the third and fourth quarter ,” said Bryan Garnier.
“ SFR faced another difficult quarter commercially but we remain confident in our ability to improve our sales and EBITDA thanks to fiber deployment and accelerating our investment program in 4G “, for his part said the CEO of Altice, Michel Combes, said in a statement.
Especially as SFR should benefit from the voluntary redundancy plan announced 5,000 people there less than a week, and the first step will be implemented before the end of 2016.
This plan sends, which should be done in two phases until the end of 2017 and should cost between 600 and 800 million euros, could allow the company to achieve 400 million savings per year.
– The United States, the second group of the market –
The first half of the year, moreover, allowed Altice to finalize the acquisition of the US cable operator Cablevision which allows him to “ become the fourth largest cable operator on an attractive and competitive US market “, welcomed Mr Combes.
The closing of the transaction allows the group to the United States its second largest market, between France and Portugal, and to strengthen its transatlantic strategy.
In the US market, an area that includes the results of Suddenlink and Cablevision (Optimum become), the group increased its sales by 2.7% to 4.01 billion euros, with a EBITDA adjusted increased by 11.7% to 1.41 billion euros.
In terms of debt, net debt of the group stood at EUR 49 billion at end-June, a total which now takes into account the $ 14.5 billion (13.03 billion of euros) additional debt related to the acquisition of Cablevision, and represents a rate of 5.8 times Ebitda of the group.
Finally, in other markets, the situation is mixed. The incumbent Portugal Telecom has seen its sales fall by 3.3% to 1.15 billion euros, but they are accompanied by an increase of 22.2% in adjusted EBITDA at 555.6 million . Furthermore, the turnover on the other hand an increase: + 1.8% to 466.1 million euros in Israel and 2.8% to 351.6 million in the Dominican Republic.
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