March 18, 2014 Full Year 2013 Results 1
An International Cable Operator in Attractive Markets 9 Territories Belgium Luxembourg 14m Homes Passed Western Europe Switzerland France 3m Cable Customers Portugal 6.6m Cable RGUs Israel Dominican Republic Overseas Guadeloupe & Martinique Territories Mayotte French Guiana La Réunion Note: figures above include Orange Dominicana and Tricom 2
Altice SA Full Year Results - Highlights Financials Recent Strategic Initiatives Liquidity & Capital Full-year pro forma 1 revenue up 0.7% IPO raised c € 750m primary proceeds Successful IPO creates equity to € 3.2bn currency for future opportunities & created 26% free float • mainly driven by Israel & France, Increased Numericable stake to 40% Altice SA consolidated net debt of partially offset by Portugal and € 6,255bn ODO Closed Tricom acquisition in Altice VII net debt of € 3,509bn Dominican Republic; Orange to follow Full-year pro forma EBITDA up 6.0% to € 1.36bn € 384m consolidated cash and • Mainly driven by Israel & Portugal undrawn revolvers of € 163m Full-year proforma OpFCF 2 up 27% to € 667m Triple-play penetration up 5% pts to 61% Notes: 1 These results reflect the pro forma results of the Altice S.A. group, including the planned acquisition of Orange Dominicana, but excluding Tricom and Mobius. 2 Defined here and throughout presentation as EBITDA - Capex 3
Altice S.A Key Operational Highlights Israel France Reorganization program finished 5% cable customer growth 3.6% ARPU growth driven by strong triple-play and high 2% ARPU growth speed broadband growth Strong shift to high-speed broadband Customer losses due to cost restructuring La Box selling well Mobile revenues up 7% (constant currency basis) as Business revenue hit by regulated termination rate cuts UMTS growth outweighs iDEN decline Capex down 29% after investment-heavy 2012 New “HOT Fibre” box launched (same as “La Box”) Overseas Territories / Orange Dominicana Portugal / Benelux Overseas Territories Portugal 6% ARPU growth as triple-play penetration grows Intense competition, adverse macroeconomic conditions leading to cable customer losses and B2B declines Continued shift from prepay to postpaid mobile subs Cable ARPU remains relatively stable Fixed and mobile integration driving ongoing cost Lower cost and capex base through renegotiation of optimisation supplier contracts, driving 21% EBITDA growth and Orange Dominicana doubling OpFCF Mobile subscriber base grew by 6% Belgium EBITDA margins remain strong at 64% 4
Strategic Initiatives Acquisition of Tricom (Cable) and Orange (Mobile) in Dominican Republic 1 2013 Financials ( € m) Leading Market Creates leading 4P operator with #2 position Position with a Significant up-sell opportunity Orange Quadruple Play Revamped and expanded B2B product offering 446 Approach EBITDA 39% Margin 2 Robust High- 78% upgraded to Docsis 3.0 173 Capacity Network HFC integrated with copper, mobile and B2B 115 Fixed 3 Revenue EBITDA OpFCF Highest quality mobile network in Dom Rep 1 Best-in-class Tricom #2 largest tower portfolio Mobile Network EBITDA 159 32% Margin 4 One of largest and most dynamic economies in Caribbean Attractive Sector Strong macroeconomic fundamentals to drive telecom Fundamentals and 51 Significant demand 24 Underpenetration Clear underpenetration of pay TV and broadband Revenue EBITDA OpFCF 5 Homogeneous store network distribution (c.680 shops) Efficient Strong focus on customer journey Distribution 2013 KPIs Highest mobile subscriber / PoS ratio Network Upside from cross-selling Tricom through ODO shops Cable HHs Passed (‘000) 456 Cable Customers (‘000) 104 6 Profitable business with high cash flow conversion Unique Cost Savings Opportunity Substantial savings from content, performance Cable RGU/Customer (x) 1.6x to Drive Cash Flow enhancement, Expansion interconnection and other areas Mobile Subscribers (‘000) 3,605 Source: Analysys Mason; WCIS 5 1 Based on Independent consultancy analysis.
Further Opportunity to Increase Margins Proven ability Further upside potential from operational efficiencies — Identify attractive targets — Track record of successful turnarounds Current International 1 EBITDA Margin is much Lower than Peers Margin Expansion 2013 vs. 2012 (EBITDA Margin % pts) 56.7% 7.4pts 51.3% 48.0% 46.9% 5.3pts 39.0% 3.6pts Portugal Israel FOT International¹ Numericable KDG Telenet Ziggo 1 Altice VII Group. 6
Altice SA Pro Forma Consolidated Financials (excluding Tricom and Mobius) € m 2012 2013 Growth France 1,300 1,314 1.1% Revenues International 1,900 1,907 0.4% Total 3,199 3,221 0.7% France 622 616 (1.0%) Margin (%) 47.8% 46.9% (0.9pp) International 661 744 13% EBITDA Margin (%) 34.8% 39.0% +4.2pp Total 1,283 1,360 6.0% Margin (%) 40.1% 42.2% +2.1pp France 336 296 (11.9%) As a % of Revenues 25.9% 22.5% (3.4pp) Operating International 190 371 95% Free Cash As a % of Revenues 10.0% 19.4% +9.4pp Flow Total 526 667 27% As a % of Revenues 16.4% 20.7% +4.3pp Note: Table assumes all acquisitions took place on 1/1/12 with exception of Tricom & Mobius. In addition, Tricom had revenue of € 159m, EBITDA of € 51m and Capex of € 26m, all in US GAAP. In addition, Mobius had revenue of € 19m and EBITDA of € 3m. 7
Altice SA Pro Forma Consolidated Revenue Constant Currency € m 2012 2013 Growth Growth Israel 850 882 3.7% 0.3% Dominican Republic - Orange 458 446 (2.5%) 7.3% French Overseas Territories 220 224 1.8% Portugal 235 210 (11%) Benelux 71 71 (1.3%) Other 65 75 15.5% Total International 1,900 1,907 0.4% 1.2% France 1,300 1,314 1.1% Total 3,199 3,221 0.7% 1.1% Total International revenue including Tricom and Mobius was € 2,085m Israel flat on constant currency basis as strong growth in UMTS mobile revenue was offset by iDEN and cable customer declines ODO grew on constant currency basis due to strong mobile subscriber growth Portugal decline due to intense competition and adverse macroeconomic conditions France grew due to cable customer & ARPU growth, partially offset by Business declines due to termination rate cuts Note: Table above excludes Tricom and Mobius where revenue was € 159m and € 19m respectively . 8
Altice SA Pro Forma Consolidated EBITDA Constant Currency € m 2012 2013 Growth Growth Israel 305 363 18.9% 15.1% Dominican Republic - Orange 167 173 3.8% 14.2% French Overseas Territories 75 85 12.5% Portugal 48 58 21.3% Benelux 46 45 (1.3%) Other 20 20 (1.0%) Total International 661 744 12.5% 13.3% France 622 616 (1.0%) Total 1,283 1,360 6.0% 6.4% Total International EBITDA including Tricom and Mobius is € 798m Israel growth mainly due to cost restructuring FOT growth due to cost optimisation from ongoing fixed/mobile integration Portugal growth due to restructuring of residential cable businesses Orange Dominicana growth due to revenue growth outweighing labour cost inflation Note: Table above excludes Tricom and Mobius where EBITDA was € 51m and € 3m respectively . 9
Altice SA Pro Forma Consolidated Capex € m 2012 2013 Growth Israel 295 209 (29%) Dominican Republic - Orange 73 59 (20%) French Overseas Territories 36 36 1% Portugal 31 24 (22%) Benelux 17 23 35% Other 19 22 18% Total International 471 373 (21%) France 286 320 12% Total 757 693 (8%) France capex up mainly due to ongoing rollout of Docsis 3.0 and launch of La Box Israel capex down following heavy investment in 2012 on UMTS network, STBs etc ODO capex down due to reduced mobile network expenditure Note: Table above excludes Tricom and Mobius . 10
France KPIs 2012 2013 Growth Cable Customers (‘000) 1,228 1,264 3% Cable RGUs (‘000 ) 3,094 3,218 4% Cable RGUs per Customer (x) 2.52 2.55 1% Cable Triple-play Penetration 79% 82% 3% pts € 833m € 869m B2C Revenue 4% € 40.70 € 41.50 Cable ARPU per Customer 2% Cable customers grew due to success of La Box and superfast broadband Successful focus on triple-play packages including La Box and superfast broadband 11
France Financials Wholesale 1,300 1,314 201 B2B 211 B2C 313 325 Revenues ( € m) 833 869 2012 2013 EBITDA Margin 47.8% 46.9% 622 616 EBITDA ( € m) 2012 2013 Operating (12)% 336 Free Cash 296 Flow ( € m) 2012 2013 Note: Revenue chart above does not break out intercompany elimination of € 69m in both 2012 and 2013 12
Israel KPIs 2012 2013 Growth Cable Customers (‘000) 1,198 1,127 (6)% Cable RGUs (‘000 ) 2,343 2,295 (2)% Cable RGUs per Customer (x) 1.96 2.04 4% Cable Triple-play Penetration 34% 40% 6pp € 678m € 699m Cable Revenue 3% Cable ARPU per Customer ( € ) € 44.40 € 47.60 7% iDEN Subs ('000) 325 218 (33)% UMTS Subs ('000) 441 592 34% Mobile Total Subs (‘000 ) 766 810 6% € 173m € 190m Mobile Revenue 10% Coverage UMTS Israel 41% 61% 20pp 13
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