Altice FY15 adjusted EBITDA rises 17.6% helped by Portugal, France and US units
Altice, a telecommunication company based in Netherlands, on Tuesday, reported a rise in 2015 adjusted profit as sales improved in its France business division. The group's adjusted EBITDA rose by 17.6% to €6.7 billion in 2015, as a result of robust growth in the US, Portugal, and France unit.
Adjusted EBITDA increased 13.8% based on constant currency principle. However, the group's net revenue fell by 0.1% to €17.5 billion as growth in US arm was offset by declines in Portugal and France units. Net revenue from French business fell by 3.5% to €11.04 billion on a standalone basis as a result of decelerated growth in B2B and B2C divisions.
But, annual adjusted EBITDA from France unit increased 20.2% to €3.86 billion with margins widening by 6.9% points to 35.0%. Mobile performance improved considerably during the fourth quarter of 2015. In addition, Altice introduced Zive in France with more than 1 million users during the final period of 2015.
Sales at Portugal Telecom declined by 7.3% from the previous year. While adjusted EBITDA increased by 3.6% with annual margins increasing by 4.3% pts to 41.2%. Revenues at US business increased 3.7% in 2015 on a constant currency basis. The company noted that it had 841.2 million A shares and 272.3 million B shares at December 31, 2015.
According to MarketWatch, the share price of Altice has declined 45% from its record height in 2015 as shareholders doubted the company's capacity to develop its business portfolio while at the same time maintaining low cost. In September, the company agreed to purchase Cablevision Systems for $10 billion.
SFR, Altice's French unit, lost over 1 million clients during the initial nine-month period of 2015 as the executive team opted to concentrate more on trimming expenses and boosting main profit than maintaining its customer base. However, the unit balanced this lose by introducing many offers that lured 141,000 mobile customers during the fourth quarter of 2015.
In 2015, the French business unit reported a net profit of €682 million, compared to a loss of €288 million in the previous year. SFR's operating margin rose to 35% during the reporting period. The unit also cut its corporate expenses by €755 million in 2015, as reported THE WALL STREET JOURNAL.
Altice increased the number of workers over the recent period as an effort to stimulate its marketing policies as it enters into a phase of network investment. The telecommunication firm appointed new executive teams last year to improve its key businesses. Dexter Goei, chief executive officer, said that the company will continue to focus on strengthening its financial and corporate performance, incorporating acquired businesses as well as exploring options to accomplish the business target.
The telecommunication industry is one among the fast growing sector in the world. Altice expects to report another profitable year in 2016 by focusing more on its core businesses.