Altice SA — Q2 2014 Earnings Presentation
16 slides from Altice SA's earnings presentation, Aug 7, 2014
Slide 1: Q2-14 Results
August 7, 2014 Q2-14 Results 1
Slide 2: Q2-14 Results - Highlights
Altice SA Q2-14 Results - Highlights Pro forma Financials1 Recent Strategic Initiatives Liquidity & Capital • Revenue down 1.3% to €837m • Signed purchase agreements • Equity capital raise of €911m • up 0.7% constant currency • SFR / Numericable completed • Virgin Mobile • Issued 25m shares to C&C •
Slide 3: Key Operational Highlights
Altice S.A Key Operational Highlights Israel France • EBITDA margin expanded 8 pts to 49% • Cable customer base grew by 3.6% • 2% cable ARPU growth • B2B increased due to data growth and LTI acquisition • Slowing cable customer losses • Growing mobile service revenue; declining handset sales • Inten
Slide 4: Pro Forma Consolidated Financials
Altice SA Pro Forma Consolidated Financials Reported Constant €m Q2-13 Q2-14 Growth Currency Growth International 522 502 (3.8%) (0.6%) Revenue France 326 335 2.8% 2.8% Total 847 837 (1.3%) 0.7% International 200 225 13% 17% Margin (%) 38.2% 44.9% +6.6pp France 154 158 2.7% 2.7% EBITDA Margin (%) 47
Slide 5: Pro Forma Consolidated Revenue
Altice SA Pro Forma Consolidated Revenue Reported Constant Currency €m Q2-13 Q2-14 Growth Growth Israel 224 214 (4.7%) (4.5%) Dominican Republic 149 147 (1.0%) 11% French Overseas Territories 59 58 (1.6%) (1.6%) Portugal 54 48 (11%) (11%) Benelux 17 18 3.3% 3.3% Other 19 17 (8.1%) (8.7%) Total Inter
Slide 6: Pro Forma Consolidated EBITDA
Altice SA Pro Forma Consolidated EBITDA Reported Constant Currency €m Q2-13 Q2-14 Growth Growth Israel 92 105 14% 15% Dominican Republic 56 65 17% 32% French Overseas Territories 20 25 24% 24% Portugal 15 15 (1.3%) (1.3%) Benelux 12 12 (0.8%) (0.8%) Other 4 3 (36%) (37%) Total International 200 225
Slide 7: Pro Forma Consolidated Capex
Altice SA Pro Forma Consolidated Capex Reported Constant Currency €m Q2-13 Q2-14 Growth Growth Israel 51 49 (3%) (3%) Dominican Republic 23 13 (44%) (37%) French Overseas Territories 10 12 12% 12% Portugal 7 7 (11%) (11%) Benelux 6 5 (10%) (10%) Other 4 8 83% 83% Total International 102 93 (8.3%) (5
Slide 8: France: Improving revenue growth
France Improving revenue growth Revenue growth EBITDA growth EBITDA 47.2% 47.2% (€m) 336 326 2.8% Margin (€m) 111 4.8% 116 B2B & Other 154 2.7% 158 Cable 215 2.4% 220 Q2-13 Q2-14 Q2-13 Q2-14 Increased capex for Docsis 3.0 upgrade Strong operational performance (€m) • Numericable digital sub base gre
Slide 9: Israel - Cable
Israel - Cable Improving mix and ARPU Slowing cable customer losses Increasing ARPU Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 (NIS) 2.0% -8 -12 -16 -17 231 232 230 230 -27 227 (‘000s) Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Improving broadband mix Growing triple-play Triple play penetration Triple play % of gross adds 60
Slide 10: Israel - Mobile
Israel - Mobile Strong UMTS sub growth offset by ARPU, iDEN and Handset declines UMTS sub growth / iDEN decline Service revenue growth; lower handset sales (‘000s / YoY growth %) (NISm) 810 848 889 +17% 761 773 693 +35% 641 123 592 107 119 514 539 127 130 +22% 247 234 218 207 79 71 196 -21% 74 63 59
Slide 11: Israel: Strong EBITDA growth despite revenue pressure
Israel Strong EBITDA growth despite revenue pressure Revenue growth Strong EBITDA growth (NISm) 1,064 (4.5)% 1,016 49.2% EBITDA Margin 41.0% 222 (10)% 199 (NISm) Mobile 15% 500 842 (3.0)% 817 436 Cable Q2-13 Q2-14 Q2-13 Q2-14 Very strong OpFCF growth Lower costs and capex (NISm) • New network sharin
Slide 12: Dominican Republic: Strong subscriber growth
Dominican Republic Strong subscriber growth Strong Mobile sub growth Strong Cable sub growth (‘000s) 6.8% 3,768 (‘000s) 3,529 13% 686 Postpay 609 8.5% 115 106 2,920 5.6% 3,083 Prepay Q2-13 Q2-14 Q2-13 Q2-14 Triple-play growth opportunity Strong operational KPIs • Mobile ARPU up 1% (constant currency
Slide 13: Dominican Republic: Strong EBITDA growth
Dominican Republic Strong EBITDA growth through cost restructuring and synergies Strong revenue growth Strong EBITDA growth EBITDA 44.4% (DOPm) 11% 9,063 Margin 8,135 911 B2B 868 (DOPm) 37.5% 6% 1,317 1,246 Cable Mobile 4,022 32% 14% 6,835 3,052 6,021 Q2-13 Q2-14 Q2-13 Q2-14 Strong OpFCF growth Cost
Slide 14: Group Net Debt
Group Net Debt Q2-14 Actual Pro Forma for SFR Altice SA Altice SA Gross Debt1: €19.9bn Gross Debt1: €19.4bn Cash: €1.1bn Cash2: €1.2bn Cash Rest. : €13.1bn Net Debt: €5.7bn Net Debt: €18.2bn HoldCo Net Debt2: €(0.5)bn HoldCo Net Debt3: €3.1bn Un. RCF: €635m Un. RCF: €1,085m 40% (74.6%)4 100% 59.7%4
Slide 15: Thank You
Thank You 15
Slide 16: Not an offer to sell or solicitation of an offer to purchase securities
NOT AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO PURCHASE SECURITIES This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to sell securities of Altice S.A. or any of its affiliates (collectively the “Altice Group”) or the solicitation of an