Altice Europe — Q1 2019 Earnings Presentation
18 slides from Altice Europe's earnings presentation, May 9, 2019
Slide 1: Altice Europe Q1 2019 Results
Altice Europe Q1 2019 Results May 9, 2019
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 Strong Q1 2019 Financials
Altice Europe Strong Q1 2019 Financials Revenue and EBITDA growth in Altice Europe • Altice France +0.1% revenue growth YoY, +9.7% Adjusted EBITDA growth YoY, ex VAT • Altice Europe: +0.9% revenue growth YoY, +7.7% EBITDA growth YoY, ex VAT in France Operational turnaround accelerating; positive sub
Slide 4: SFR Commercial Performance
SFR Commercial Performance Outstanding outperformance in net adds driven by further operational improvements B2C fixed net adds1 B2C mobile postpaid net adds1 (‘000) (‘000) Fixed B2C base 6.4m +6% YoY B2C mobile postpaid base 13.9m +7% YoY Churn of which Fibre 41% -15% +391 +166 YoY in Q1-19 +83 +88
Slide 5: MEO Commercial Performance
MEO Commercial Performance Sustained subscriber growth in both fixed and mobile segments B2C fixed net adds B2C mobile postpaid net adds (‘000) (‘000) Fixed B2C base 1.6m +1.7% YoY B2C mobile postpaid base 3.0m +5% YoY Churn of which Fibre 53% 10% In Q1-19 +8 +8 +4 +6 +4 +38 +37 +34 +32 +33 Call Vol
Slide 6: France Revenue Trends
Altice France Revenue Trends Stabilization driven by the solid conquest of the last quarters Components of Q1 2019 revenue trends1 (€m) +0.1% YoY ex VAT4 (-1.6% YoY reported) 2 599 • Residential2: -4.4% YoY ex VAT4 2 558 108 112 • Fixed: -4.4% YoY ex VAT4 732 • Mobile: -4.4% YoY ex VAT4 807 • Busine
Slide 7: International Revenue Trends
Altice International Revenue Trends Total revenues back to growth in Q1 2019 Components of Q1 2019 revenue trends1 (€m) +2.0% YoY • Portugal: +0.4% YoY 949 968 68 88 133 139 • Israel: -4.1% YoY reported, -6.7% YoY with constant currency 242 232 • Dominican Republic: +4.6% YoY, reported, -0.4% YoY wi
Slide 8: Pro Forma Financials
Altice Europe Pro Forma Financials IFRS 15 Financials1 €m Q1-18 Q1-19 Growth YoY Reported Growth YoY Constant FX France 2,599 2,558 -1.6% -1.6% Altice International 949 968 +2.0% +0.6% Altice TV 20 60 - - Corporate and Other, Eliminations -40 -70 - - Total Revenue 3,528 3,515 -0.4% -0.7% France 915
Slide 9: FY 2019 Guidance and Mid-Term Outlook Reiterated
FY 2019 Guidance and Mid-Term Outlook Reiterated FY 2019 Guidance Q1 2019 actual1 Altice France Revenue Growth YoY 3-5% +0.1% Altice France Adjusted EBITDA €4.0-4.1 billion €956 million2 Altice Europe (ex Altice TV) OpFCF Growth YoY In the 10% area +1% Altice Luxembourg (Telecom) Net debt to Adjuste
Slide 10: Recent Refinancing Strengthening Balance Sheet
Recent Refinancing Strengthening Balance Sheet Increased weighted average life, no major maturity before 2023, annual cash savings in excess of €110m Altice maturity profile1 (€bn) 6.2 years 12,2 12,2 Increased WAL +0.5 years Stable WACD 5.7% €110m Annual Cash Savings savings p.a. 1 2 1 €3.6bn of Al
Slide 11: Pro Forma Debt Capital Structure
Altice Europe Pro Forma Debt Capital Structure1 Diversified silos Altice Europe N.V Gross Debt €31,086m Net Debt €30,135m Gross Leverage 6.0x Net Leverage 5.9x Altice Luxembourg consolidated 3.87%4 Gross Debt €29,358m Altice Corporate Net Debt €28,598m Altice USA Inc. Financing S.à r.l. (ACF) Gross
Slide 12: Q&A
Q&A 12 altice
Slide 13: Appendix
Appendix 13 altice
Slide 14: Detailed Pro Forma Financials
Altice Europe Detailed Pro Forma Financials IFRS 15 Financials1 €m Q1-18 Q1-19 Growth YoY Reported Growth YoY Constant FX France 2,599 2,558 -1.6% -1.6% Portugal 507 509 +0.4% +0.4% Israel 242 232 -4.1% -6.7% Dominican Republic 133 139 +4.6% -0.4% Teads2 68 88 +30.2% +27.0% Altice TV 20 60 - - Corpo
Slide 15: Reconciliation of non-GAAP performance measures to operating profit
Altice Europe N.V. Reconciliation of non-GAAP performance measures to operating profit1 For the three months ended €m March 31, 2019 Revenue 3,511.1 Purchasing and subcontracting costs -901.0 Other operating expenses -723.9 Staff costs and employee benefits -386.4 Total 1,499.8 Share-based expense 1
Slide 16: Pro forma net leverage reconciliation as of March 31, 2019
Altice Europe N.V. Pro forma net leverage reconciliation as of March 31, 2019 €m Altice Europe N.V Reconciliation to Swap Adjusted Debt Actual Pro Forma Total Debenture and Loans from Financial Institutions 33,549 33,549 Value of Debenture and Loans from Financial Institutions in Foreign Currency co
Slide 17: Pro forma net leverage reconciliation as of March 31, 2019
Altice Europe N.V. Pro forma net leverage reconciliation as of March 31, 2019 €m Altice Luxembourg Consolidated Altice Altice Europe Altice Altice Altice Lux Altice TV ACF Europe N.V Altice Europe N.V (Pro Forma) Altice France Eliminations N.V International Luxembourg Conso Consolidated Gross Debt C
Slide 18: IFRS 16: Impact on KPIs
Altice Europe N.V. IFRS 16: Impact on KPIs KPI IFRS 16 impact Comments Adjusted EBITDA Income (after operating leases and No • Unchanged Adjusted EBITDA definition Statement before financial leases) impact • Unchanged Capex definition Cash Flow No Adjusted EBITDA - Capex Statement impact • Unchanged