THIRD-QUARTER 2017 REVENUES

Transcription

1 PRESS RELEASE Paris, November 16, 2017 THIRD-QUARTER 2017 REVENUES Reveues up 6.6% year o year for the first ie moths of 2017, comig i at 3,710 millio 250,000 ew mobile subscribers durig the quarter the et growth beig fully attributable to the 19.99/moth Free Mobile Pla makig Free Mobile Frace s leadig recruiter of mobile subscribers sice its lauch, i.e., for almost six years 1 4G ow a reality for more tha oe out of two subscribers a total of 7.4 millio 4G subscribers at September 30, 2017, with average mothly data usage of almost 7 GB Free obtais the best score for 4G coectios i Frace i the Perf mobile coectios performace survey for the teth quarter i a row, with a average dowload speed of 37 Mbps A record-breakig quarter for FTTH coectios with 64,000 ew subscribers, makig Free Frace's leadig alterative FTTH operator with a total of early 500,000 subscribers 27,000 ew Broadbad ad Ultra-Fast Broadbad subscribers durig the quarter, makig Free the leadig alterative ladlie operator with early 6.5 millio subscribers 1 Metropolita Frace excludig M2M; Compay estimate. 1/6

2 KEY OPERATING PERFORMANCE INDICATORS AT SEPTEMBER 30, 2017 Subscriber umbers Total mobile subscribers 13,390k 12,385k - Of which 4G 7,400k 5,300k Total Broadbad ad Ultra-Fast Broadbad 6,495k 6,327k subscribers - Of which FTTH 483k 265k Total umber of subscribers 19,885k 18,712k Other idicators Broadbad ad Ultra-Fast Broadbad ARPU (i ) Freebox Revolutio ARPU* (i ) >38.00 >38.00 Number of coectible FTTH sockets 5.6m 4.0m Average 4G data usage (i GB per moth per subscriber) 6.9 GB 4.4 GB * Excludig promotios CONSOLIDATED THIRD-QUARTER 2017 REVENUES I a fiercely competitive operatig eviromet, cosolidated reveues rose 6.6% year o year i the first ie moths of 2017, to 3,710 millio. Durig that period, reveues for Broadbad ad Ultra-Fast Broadbad climbed 4.7% to 2,087 millio ad Mobile reveues advaced 9.0% to 1,630 millio. 2/6

3 The table below shows the breakdow of cosolidated reveues by category for the ie-moth ad three-moth periods eded September 30, 2017 ad 2016 as well as year-o-year percetage chages. I millios Nie moths to 2017 Nie moths to 2016 % chage Q Q % chage Mobile 1,630 1, % % Ladlie 2,087 1, % % Itra-group sales (7) (9) -22.2% (2) (3) -33.3% Total cosolidated reveues 3,710 3, % 1,246 1, % Ladlie reveues Despite persistetly fierce competitio ad umerous promotios lauched by competitors, the Group s reveues from Broadbad ad Ultra-Fast Broadbad activities rose 4.4% to 694 millio i third-quarter The sigificat evets of the quarter for the Ladlie busiess were as follows: Cosolidatio of the Group s positio as Frace s leadig alterative operator, with 27,000 et adds durig the quarter brigig the total Broadbad ad Ultra-Fast Broadbrad subscriber base to early 6.5 millio. Ogoig excellet mometum for expadig the Group s FTTH coverage. With some 300,000 ew coectible FTTH sockets added durig the quarter, the Group had a total of 5.6 millio at September 30, A record-breakig quarter i terms of FTTH subscriber coectios, with 64,000 ew subscribers added. I accordace with its commitmets, the Group cotiued to accelerate its FTTH coectios, despite the summer vacatio period. Sice the begiig of 2017 it has coected 173,000 ew subscribers more tha for the whole of 2016 affirmig its positio as Frace's leadig alterative FTTH operator, with a total of early half a millio subscribers. Broadbad ad Ultra-Fast Broadbad ARPU at 33.90, represetig a icrease of 40 euro cets compared with the third quarter of ARPU for the Freebox Revolutio offer oce agai exceeded Mobile reveues Reveues for the Mobile busiess rose 6.3% year o year to 554 millio i third-quarter 2017, reflectig a robust commercial performace. The sigificat evets of the quarter for the Mobile busiess were as follows: A higher umber of et adds tha i the last two quarters, with 250,000 ew subscribers for the Group s mobile offers. Free is the oly operator i Frace to offer 2 Excludig promotios. 3/6

4 ulimited calls, texts/mms ad 4G (for Freebox subscribers) for less tha 20 per moth ad ow has close to 13.4 millio mobile subscribers. I the third quarter of 2017, Free had the highest umber of et adds i Frace for the 23 rd cosecutive quarter. At September 30, 2017, the Group had a 18.7% 3 share of the Frech mobile market, oe poit higher tha a year earlier. Aother improvemet i the subscriber mix, with a decrease i subscribers o the 2/moth pla ( 0 for Freebox subscribers) for the secod quarter i a row due to the et growth i third-quarter 2017 beig fully attributable to the 19.99/moth Free Mobile Pla ( 15.99/moth for Freebox subscribers). Further cofirmatio that the Group s 4G etwork is a idustry bechmark with total 4G subscribers amoutig to 7.4 millio at ed-september This 600,000 icrease durig the third quarter of 2017 also reflects the excellet level of et adds for the 19.99/moth Free Mobile Pla ( for Freebox subscribers). I additio, users of the Group s 4G etwork have oe of the highest mothly data usage rates i Europe, at early 7 GB per subscriber, which represets a icrease of almost 60% i the space of oe year. These achievemets illustrate the quality of Free Mobile s 4G etwork, as demostrated by the fact that Free obtaied the best score for 4G coectios i Frace i the Perf mobile coectios performace survey for the 10 th cosecutive quarter. Ogoig deploymet of 4G frequecies, with 1,100 sites ewly equipped to use 1,800 MHz, 100 ew sites equipped for 700 MHz ad 560 sites for 2,600 MHz. The Group s deploymet drive has eabled it to raise its 4G coverage rate by six percetage poits sice the begiig of the year ad at September 30, 2017 its 4G etwork covered more tha 84% of the Frech populatio. I parallel, the Group is cotiuig to roll out its 3G etwork ad ow has a total of 11,300 sites, represetig a icrease of over 1,000 durig the quarter. This drove a 2-poit rise i the 3G coverage rate compared with Jue 30, 2017, with the Group s 3G etwork ow coverig early 93% of the Frech populatio. A 7.5% icrease i Mobile services reveues i third-quarter This growth figure would have bee over 10% for the period without the egative impacts of (i) a decrease i icomig reveues due to lower volumes of text messages as mobile data usage rises, ad (ii) the loss of reveues resultig from the move to oce agai ehace the Free Mobile Pla by icreasig the mobile Iteret roamig allowace to 25 GB per moth. 3 Metropolita Frace excludig M2M; Compay estimate. 4/6

5 GLOSSARY Alterative operator: A operator that etered the market subsequet to the icumbet State operator losig its moopoly. Broadbad ad Ultra-Fast Broadbad ARPU (Average Reveue Per Broadbad ad Ultra-Fast Broadbad User): Icludes reveues from the flat-rate package ad value-added services but excludes oe-time reveues (e.g., fees for migratio from oe offer to aother or subscriptio ad cacellatio fees), divided by the total umber of Broadbad ad Ultra-Fast Broadbad subscribers ivoiced for the period. Broadbad ad Ultra-Fast Broadbad subscribers: Subscribers who have siged up for the Group s ADSL, VDSL or FTTH offerigs. Coectible FTTH socket: A socket for which the lik betwee the shared access poit ad the optical splitter has bee put i place by the buildig operator, which the Group ca access i accordace with its co-fiacig commitmets, ad for which the coectio to the Group s etwork has bee completed or is i progress. Freebox Revolutio ARPU (Average Reveue Per Freebox Revolutio Subscriber, excludig promotios): Icludes reveues from the flat-rate package ad value-added services but excludes oe-time reveues (e.g., fees for migratio from oe offer to aother or subscriptio ad cacellatio fees), divided by the total umber of Freebox Revolutio subscribers ivoiced for the period. FTTH (fiber-to-the-home): Data delivery techology that directly coects subscribers homes to a optical ode (ON). M2M: Machie to machie commuicatios. Mobile services reveues: Mobile reveues excludig hadset sales. Net adds: Represets the differece betwee total subscribers at the ed of two differet periods. Total Broadbad ad Ultra-Fast Broadbad subscribers: Represets, at the ed of a period, the total umber of subscribers, idetified by their telephoe lies or optical fiber, who have siged up for Free s or Alice s Broadbad or Ultra-Fast Broadbad service, excludig those recorded as havig requested the termiatio of their subscriptio. Total mobile subscribers: Represets, at the ed of a period, the total umber of subscribers, idetified by their telephoe lies, who have subscribed to a Free mobile offerig, excludig those recorded as havig requested the termiatio of their subscriptio. 5/6

6 About Iliad Iliad is the paret compay of Free, the ivetor of the Freebox, the first multiservice box o ADSL. Free is behid umerous iovatios i the Broadbad ad Ultra-Fast Broadbad access segmet (VoIP, IPTV, flat-rate callig plas to multiple destiatios, etc.) ad provides straightforward ad iovative offerigs at the best prices. For example, the Freebox Revolutio, the 6 th geeratio of Freebox uits, icludes a NAS ad a Blu-Ray TM drive, ad the Freebox mii 4K was the first Adroid TV TM ad 4K box o the Frech market. Free was the first operator to iclude calls from ladlies to mobile phoes i its offerigs ad also calls to Frech overseas departmets (DOM). Sice Jauary 2012, Free has brought mobile phoe usage withi everyoe's reach with straightforward, o-commitmet offerigs at very attractive prices. The Free Mobile Pla icludes roamig commuicatios all year roud from more tha 35 coutries (ulimited calls, texts ad MMS as well as 25GB/moth of 3G mobile Iteret from these destiatios). Free also icludes ulimited 4G i its pla for Freebox subscribers. As at September 30, 2017, Free had early 20 millio subscribers (6.5 millio Broadbad ad Ultra-Fast Broadbad subscribers ad 13.4 millio mobile subscribers). Exchage: Euroext Paris Ticker symbol: ILD Market place: Eurolist A of Euroext Paris (SRD) ISIN Code: FR FTSE classificatio: 974 Iteret Member of Euro Stoxx, SBF 120, CAC Next 20, CAC Mid 100 6/6