Altice SA — Q3 2014 Earnings Presentation
16 slides from Altice SA's earnings presentation, Nov 14, 2014
Slide 1: Q3-14 Results
November 14, 2014 Q3-14 Results 1
Slide 2: Q3-14 Results - Highlights
Altice SA Q3-14 Results - Highlights Pro forma Financials1 Recent Strategic Initiatives Liquidity & Capital • Revenue down 0.3% to €832m • Increased NUM stake to 74.6% • Numericable €4.7bn rights issue • down 0.7% constant currency • Acquired C&C3 35% stake in completed NUM for €529m cash and 25m AT
Slide 3: Key Operational Highlights
Altice S.A Key Operational Highlights Israel France • Strong triple-play and hi-speed broadband growth • Customer growth driving 3.0% cable revenue growth • Growing UMTS mobile service revenue • Multiplay subscribers grew by 6.3% • Intense price competition continues in Mobile market • Continuing sh
Slide 4: Pro Forma Consolidated Financials
Altice SA Pro Forma Consolidated Financials Reported Constant €m Q3-13 Q3-14 Growth Currency Growth International 516 504 (2.3%) (3.0%) Revenue France 319 329 3.0% 3.0% Total 835 832 (0.3%) (0.7%) International 204 239 17% 16% Margin (%) 39.5% 47.4% +7.8pp France 149 158 5.8% 5.8% EBITDA Margin (%)
Slide 5: Pro Forma Consolidated Revenue
Altice SA Pro Forma Consolidated Revenue Reported Constant Currency €m Q3-13 Q3-14 Growth Growth France 319 329 3.0% 3.0% Israel 226 219 (3.0%) (4.8%) Dominican Republic 141 146 3.3% 3.8% French Overseas Territories 62 60 (3.7%) (3.7%) Portugal 52 47 (11%) (11%) Benelux 18 18 1.5% 1.5% Other 17 15 (
Slide 6: Pro Forma Consolidated EBITDA
Altice SA Pro Forma Consolidated EBITDA Reported Constant Currency €m Q3-13 Q3-14 Growth Growth France 149 158 6% 6% Israel 95 108 14% 12% Dominican Republic 55 77 39% 40% French Overseas Territories 23 26 14% 14% Portugal 13 14 12% 12% Benelux 11 12 12% 12% Other 8 2 (80%) (80%) Total 353 396 12% 1
Slide 7: Pro Forma Consolidated Capex
Altice SA Pro Forma Consolidated Capex Reported Constant Currency €m Q3-13 Q3-14 Growth Growth France 67 88 31% 31% Israel 45 61 37% 34% Dominican Republic 23 19 (17%) (16%) French Overseas Territories 8 14 64% 64% Portugal 4 6 56% 56% Benelux 5 5 2% 2% Other 5 9 71% 72% Total 156 201 29% 28% • Fran
Slide 8: France: Improving revenue growth
France Improving revenue growth Revenue growth EBITDA growth EBITDA +1.3pp 48.0% (€m) 46.7% 319 3.0% 329 Margin (€m) 103 6.0% 109 B2B & Other 5.8% 158 149 Cable 216 3.0% 223 Q3-13 Q3-14 Q3-13 Q3-14 Increased capex for Docsis 3.0 upgrade Strong operational performance (€m) • Total individual users gr
Slide 9: Israel - Cable
Israel - Cable Improving mix but customer growth affected by customer service Customer losses affected by customer service Improving broadband mix Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 -8 Broadband subs: <30Mb -12 -17 70% -20 -27 46% 23% Broadband subs: 30Mb+ (‘000s) Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-1
Slide 10: Israel - Mobile
Israel - Mobile UMTS service revenue up 12% UMTS sub growth continues UMTS Service revenue growth (‘000s / YoY growth %) (NISm) 889 932 +21% 810 848 773 746 +38% 693 119 123 592 641 133 +12% 539 127 130 234 218 207 196 186 -21% 74 71 63 59 57 -23% 36 41 29 26 36 +1% Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q3-
Slide 11: Israel: Strong EBITDA growth despite revenue pressure
Israel Strong EBITDA growth despite revenue pressure Strong EBITDA growth Successful cost restructuring • Reduced headcount to 2,335 49.2% • Mobile roaming agreement saved c.€10m +7.2 pts • Reduced network maintenance spend EBITDA Margin 42.0% 502 12% 450 (NISm) Q3-13 Q3-14 Note: Average Foreign Exc
Slide 12: Dominican Republic
Dominican Republic Strong postpay and cable growth Strong Mobile postpay sub growth Strong Cable sub growth (‘000s) (‘000s) 3,480 3,391 Postpay 608 +15% 702 119 11% 107 2,872 Prepay 2,690 Q3-13 Q3-14 Q3-13 Q3-14 Strong underlying performance Strong Cable ARPU growth • Strong mobile postpay growth DO
Slide 13: Dominican Republic: Strong EBITDA growth
Dominican Republic Strong EBITDA growth through cost restructuring and synergies Revenue growth Strong EBITDA and margin growth 7,916 3.8% 8,212 52.5% 804 732 B2B +14% pts 3.9% 1,304 EBITDA 1,255 Margin 38.9% Cable Mobile 4,314 2.7% 40% 6,318 6,491 3,081 (DOPm) (DOPm) Q3-13 Q3-14 Q3-13 Q3-14 Strong
Slide 14: Group Net Debt
Group Net Debt Q3-14 Actual Pro Forma for SFR/C&C Altice SA Consolidated Altice SA Consolidated Gross Debt: €19.7bn Gross Debt: €19.7bn Total Cash €13.6bn Total Cash €556m Total Net Debt: €6.1bn Total Net Debt: €19.2bn Undrawn RCF €593m Undrawn RCF €1,043m Altice SA Altice SA Gross Debt: €4.2bn Gros
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