Altice Europe — Q1 2020 Earnings Presentation
24 slides from Altice Europe's earnings presentation, May 20, 2020
Slide 1: Altice Europe Q1 2020 Results
Altice Europe Q1 2020 Results May 20, 2020
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS Certain statements in this presentation constitute forward-looking statements. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this presentation, including, without limitatio
Slide 3: Altice Europe Q1 2020 Summary
Altice Europe Q1 2020 Summary Subscriber net gains in all geographies and all segments Revenue growth +3.6% with residential service revenue accelerating to +2.5% EBITDA and OpFCF growth: +1.0% and +12% €4.9 billion1 debt refinanced in Q1 2020, capital structure simplified Fastfiber and tower transa
Slide 4: COVID-19 Update
COVID-19 Update Resilient business. Maintaining 2020 guidance Our focus Business impacts Outlook Protect our people All shops closed in March Defensive telecom performance Strong decrease in churn, still net adds positive Flat rate contracts, long-term customers Maintain quality of connectivity
Slide 5: Telecom Commercial Performance – Residential Fixed
Telecom Commercial Performance – Residential Fixed Positive subscriber trends despite majority of shops closed since mid-March Residential fixed net adds (‘000) France Portugal Israel Dominican Republic Altice Europe +41 +31 +28 +14 +8 +7 +4 +5 +3 +4 +63 +64 +41 +34 +0 +2 +107 +114 Q1-19 Q1-20 Q1-19
Slide 6: Telecom Commercial Performance – Residential Mobile
Telecom Commercial Performance – Residential Mobile Positive subscriber trends despite majority of shops closed since mid-March Residential postpaid mobile net adds (‘000) France Portugal Israel Dominican Republic Altice Europe +167 +117 +116 +79 +33 +35 +7 +11 +2 +1 Q1-19 Q1-20 Q1-19 Q1-20 Q1-19 Q1
Slide 7: Altice Europe Revenue Trends
Altice Europe Revenue Trends Residential service revenue strength continues to accelerate +3.6% YoY Components of Q1 2020 revenue trends YoY (€m) • Total Altice Europe: +3.6% YoY 3,632 3,507 • Residential services: +2.5% 254 252 182 • Business services: +6.6% 183 • Equipment sales: -0.1% 1,081 1,152
Slide 8: Altice France Revenue Trends
Altice France Revenue Trends +3.6% YoY Components of Q1 2020 revenue trends YoY (€m) • Total Altice France: +3.6% YoY 2,643 2,550 96 • Residential services: +2.3% 104 135 133 • Business services: +8.0% 872 • Equipment sales: +1.3% 807 • Media: -7.7% Revenue growth evolution YoY +13.3% 1,506 1,541 +7
Slide 9: Altice International Revenue Trends
Altice International Revenue Trends +3.1% YoY Components of Q1 2020 revenue trends YoY (€m) • Total Altice International: +3.1% YoY 968 997 96 • Portugal: +2.6% 88 133 • Israel: +6.4% (-0.9% at CC) 139 • Dominican Republic: -4.5% (-1.6% at CC) 232 247 • Teads: +9.0% (+6.0% at CC) Revenue growth evol
Slide 10: Media Activity
Media Activity Drop in advertising revenue since March 2020 due to COVID-19 Media revenue detail Significant financial impacts while strong operating metrics Altice Europe Media ex Altice TV revenue split1 revenue by category • BFMTV news channel in France with audience multiplied by 2x vs. 2019 • T
Slide 11: Altice Europe Financials
Altice Europe Financials €m Q1-19 Q1-20 Growth YoY Reported Growth YoY Constant FX France 2,550 2,643 +3.6% +3.6% Altice International 968 998 +3.1% +1.5% Altice TV 60 63 - - Corporate and Other, Eliminations -71 -72 - - Total Revenue 3,507 3,632 +3.6% +3.1% France 960 975 +1.6% +1.6% Altice Interna
Slide 12: Altice Europe Capital Structure
Altice Europe Capital Structure Altice Europe N.V Net Debt €28,574m No significant debt maturities until 2025, WAL of 6.3 years Net Leverage 5.2x Significant liquidity of €4.2 billion Altice Corporate 100% Financing (ACF) Reduced WACD from 5.0% to 4.8% since year-end 2019 Net Debt €977m Altice
Slide 13: Free Cash Flow
Free Cash Flow Q1 2020 Free Cash Flow (FCF) Altice Europe excluding TV Free Cash Flow (€m) Q1 2020 reported FCF €(314)m Altice Europe excluding TV 621 Capex phasing +€198m Delta driven by accrued vs. cash Capex (198) Interest +€217m €1.4bn run-rate secured (567) Tower tax (IFER) +€60m €80m full year
Slide 14: FY 2020 Outlook Update
FY 2020 Outlook Update Maintaining 2020 guidance Solid Q1 2020 results supported by residential segment accelerated growth and strong liquidity Good start of the year with no current need to change or suspend our 2020 guidance Accelerate residential service revenue growth in our key geographies Main
Slide 15: Q&A
Q&A 15 alti
Slide 16: Appendix
Appendix 16 alti
Slide 17: Detailed Financials
Detailed Financials €m Q1-19 Q1-20 Growth YoY Reported Growth YoY Constant FX France 2,550 2,643 +3.6% +3.6% Portugal 509 522 +2.6% +2.6% Israel 232 247 +6.4% -0.9% Dominican Republic 139 133 -4.5% -1.6% Teads 88 96 +9.0% +6.0% Altice TV 60 63 - - Corporate and Other, Eliminations -71 -72 - - Total
Slide 18: Non-GAAP Reconciliation to Unaudited GAAP Measures
Non-GAAP Reconciliation to Unaudited GAAP Measures1 For the three months ended €m March 31, 2020 (unaudited) Revenue 3,625.4 Purchasing and subcontracting costs -971.4 Other operating expenses -736.9 Staff costs and employee benefits -387.2 Total 1,529.9 Share-based expense 10.0 Rental expense opera
Slide 19: Altice Europe Debt Maturity Profile
Altice Europe Debt Maturity Profile1 (€bn) 0.2 0.1 0.1 1.3 0.1 4.9 12.3 5.1 6.5 2020 2021 2022 2023 2024 2025 2026 2027 2028 Altice France Altice International Altice Corporate Financing 1. Maturity profile excluding leases/other debt (c.€145 million) 19
Slide 20: Q1 2020 Free Cash Flow
Q1 2020 Free Cash Flow Altice Europe excluding TV 621 (198) (567) (27) (146) (578) (314) (308) (174) 168 (257) 270 (488) (123) 123 OpFCF Cash vs. Interest Pensions Taxes Ex-TV TV Altice M&A Other Change Change Change accrued & Other 1 FCF FCF Europe investing in in in Capex FCF activities net debt g
Slide 21: Altice TV Content Cost Schedule
Altice TV Content Cost Schedule Rest of (€m) 20201 2021 2022 2023 Content expense (incl. EPL, NBC/Discovery etc.) 183 197 65 65 - UEFA (incl. Champions League) 176 176 - - Other sports 18 17 - - Payment to acquire intangible assets 194 193 - - Total committed cash content costs 377 389 65 0 - Total
Slide 22: Pro Forma Net Debt Reconciliation as of March 31, 2020
Pro Forma Net Debt Reconciliation as of March 31, 2020 €m Altice Europe N.V. Reconciliation to Swap Adjusted Debt Actual Pro Forma Total Debenture and Loans from Financial Institutions 32,648 32,648 Value of Debenture and Loans from Financial Institutions in Foreign Currency converted at closing FX
Slide 23: Pro Forma Net Leverage Reconciliation as of March 31, 2020
Pro Forma Net Leverage Reconciliation as of March 31, 2020 €m Altice Telecom Perimeter Altice Europe Altice Altice Altice TV ACF Others Intra-Group N.V Altice Europe N.V (Pro Forma) Altice France Telecom International Eliminations Consolidated Perimeter Gross Debt Consolidated 21,539 8,145 29,684 -
Slide 24: Additional Footnotes
Additional Footnotes €1.8 billion of disposal cash proceeds include the proceeds already received from the sale of 49.99% of Fastfiber (payment terms: €1,573 million received on April 17, 2020, Page 3 not including €375 million in December 2021, nor €375 million in December 2026) and the proceeds fr