SFR continues to win back mobile subscribers

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SFR saw its number of mobile subscribers explode in the last quarter of 2019. The operator claims and 41,000 additional customers on the fixed (+59,000 fiber) and 234,000 additional subscribers on the mobile, its largest increase in recent quarters . Revenues generated by the fixed rate are still down (-0.6%), but it is slowing compared to previous quarters, while growth on the mobile is low (+ 0.7%). SFR however compensates with excellent performance in the corporate market (+ 23.9%).

Telecom and media group Altice Europe, parent company of operator SFR, saw its growth accelerate in the third quarter compared to the previous quarter, with sales published on Wednesday November 13, up 6.9 % over one year to 3.67 billion euros. Between July and September, the adjusted EBITDA also increased by 8.8% to 1.41 billion euros, thanks to a good performance of the French market and despite a drop in the all other markets.

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“For Altice France, our solid results are driven by growth in all market segments, including an improvement in fixed-line performance for the second consecutive quarter,” welcomed the group's founder, Patrick Drahi, quoted in a statement. In its main market, SFR's revenue grew by 7.2% and its adjusted Ebitda margin improved by 0.8 points to 39.8%, in particular due to a growth in the number of customers both on the fixed (thanks to the fiber) on the mobile.

Altice Europe's second largest market, Portugal, also posted growth, albeit more modest (+ 2.1%) but with a decline in adjusted EBITDA (-1.7%) Group explained by an unfavorable comparison base and the loss of high-margin revenues in the business segment. Regarding its outlook, the group confirmed its objectives, revised upward in the previous quarter. It is still considering an improvement in its free cash flow of 15%, ignoring Altice TV.

The objective remains to see the turnover increase between 5% and 6%

In France, the objective remains to see turnover grow between 5% and 6% over the year, with an adjusted EBITDA of between 4.1 billion and 4.2 billion euros. The group keeps a high level of debt, slightly over 30 billion euros, about 6 times its annual EBITDA, but it still hopes to reduce this rate to 4.25 times in the medium term.


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