SFR hits Altice results but US turns in strong performance

Altice Group second quarter financials were pulled down by continued subscriber, revenue and earnings losses at French unit SFR, despite a solid performance elsewhere, including its new US acquisitions.

Total French revenues fell by 4.3% year-on-year to €2.781 billion, which included revenues from its new content and media assets. Adjusted EBITDA, like revenue, was hit by falling subscriber numbers, falling 6.8% to €999 million.

Total French fixed customer losses were 58,000, a slight year-on-year improvement compared with the 61,000 lost during the prior period.

Consumer mobile revenues also tumbled by 7.1% thanks in large part to subscriber losses of 199,000 – an improvement on the prior year losses of 314,000.

The quarter saw the completion of the acquisitions of a 49% stake in NextRadioTV and Altice media Group France to create a portfolio of channels that also includes SFR’s sports assets, centred on its rights to English Premier League football. SFR launched five new sports channel and two news channels – BFM Paris and BFM Sport – ahead of the Premier League season kicking off at the end of this week.

NextRadioTV, now rebranded SFR RadioTV, saw double-digit revenue growth of 12.6%.

Portugal Telecom/Meo also saw revenue fall by 3% – an improvement on the prior year – but EBITDA surged by 22.5%. Consumer revenue was hit by falling voice termination fees as well as multi-play price competition.

Israeli unit Hot saw revenues increase for the first time in a number of years, growing 1.5% on a constant currency basis.

Altice’s US assets peformed well. Suddenlink saw revenues grow by 5.7% on a constant currency basis. EBITDA grew by 18.5%. Revenue generating units were down by 8,000 but residential customers relationships were up 2.9% year-on-year. Optimum also performed well.

Overall, Altice saw group revenues fall by 2.6% to €5.828 billion for the quarter, while total group EBITDA was up 2.7% on a reported basis to €2.265 billion.