FIRST-QUARTER 2017 REVENUES

Transcription

1 PRESS RELEASE Paris, May 18, 2017 FIRST-QUARTER 2017 REVENUES First-quarter reveues up almost 7% to 1,224 millio 300,000 ew ladlie ad mobile subscribers durig the quarter Frace's leadig recruiter of mobile subscribers for the 21 st cosecutive quarter 1 Further acceleratio of FTTH coectios with some 60,000 ew fiber subscribers durig the period Free is Frace's umber two FTTH operator 6.3 millio 4G subscribers with average mothly data usage of 6 GB per subscriber At March 31, 2017 the Group's 4G etwork covered over 80% of the Frech populatio Three out of four Frech people thik that ulimited 4G will become essetial 2 - Free is the first operator to iclude ulimited 4G i its per moth mobile pla for Freebox subscribers 1 Mobile market i Metropolita Frace excludig M2M 2 Source: IFOP poll, April /6

2 KEY OPERATING PERFORMANCE INDICATORS AT MARCH 31, 2017 Subscriber umbers March 31, 2017 Dec. 31, Sept. 30, Total mobile subscribers 12,940k 12,700k 12,385k - Of which 4G 6,300k 5,900k 5,300k Total Broadbad ad Ultra-Fast Broadbad 6,451k 6,385k 6,327k subscribers - Of which FTTH 369k 310k 265k Total umber of subscribers 19,391k 19,085k 18,712k Other idicators March 31, 2017 Dec. 31, Sept. 30, Broadbad ad Ultra-Fast Broadbad ARPU (i ) Freebox Revolutio ARPU* (i ) >38.0 >38.0 >38.0 Number of coectible FTTH sockets 4.8m 4.4m 4.0m Average 4G data usage (i GB per moth per subscriber) 6.0 GB 4.9 GB 4.4 GB * Excludig promotios CONSOLIDATED FIRST-QUARTER 2017 REVENUES I a fiercely competitive operatig eviromet, the Group registered over 300,000 et adds for its ladlie ad mobile offerigs i the first three moths of Cosolidated reveues for the period rose by almost 7% year o year to 1,224 millio. The faster pace of growth for Broadbad ad Ultra-Fast Broadbad cotiued, with reveues comig i 5% higher at early 700 millio, ad Mobile reveues climbed more tha 9% to just uder 530 millio. 2/6

3 The table below shows the breakdow of cosolidated reveues by category for the first quarter of 2017 ad as well as the percetage chage betwee the two periods. I millios Q Q1 % chage Ladlie % Mobile % Itra-group sales (2.5) (2.8) -10.7% Total cosolidated reveues 1, , % Ladlie Despite persistetly fierce competitio, Broadbad ad Ultra-Fast Broadbad reveues cotiued to grow at a faster pace year o year, reachig 698 millio i first-quarter 2017 (up 5.0% compared with the 3.9% icrease recorded for the same period of ). The sigificat evets of the first quarter of 2017 for the Ladlie busiess were as follows: 66,000 ew Broadbad ad Ultra-Fast Broadbad subscribers, represetig a et add market share of 35%. Agaist a highly competitive backdrop characterized by umerous promotioal offers, the Group's et add market share was oce agai higher tha its overall market share. This achievemet was due to (i) the Group cotiuig to differetiate its offerigs, with its ed- lauch of the ew Freebox Revolutio with TV by CANAL Paorama offer, (ii) the erichmet of its offerigs thaks to ew ethic TV packages, (iii) the strog image ad reputatio of the Free brad ad the quality of the Freebox, (iv) best-i-class subscriber relatios services, ad (v) a promotioal offer lauched durig first-quarter At March 31, 2017, the Group had a total of almost 6.5 millio Broadbad ad Ultra-Fast Broadbad subscribers, cofirmig its positio as Frace's leadig alterative ladlie Broadbad ad Ultra-Fast Broadbad operator. A acceleratio of FTTH coectios. I lie with its objectives the Group sigificatly stepped up the pace of its FTTH coectios, with some 60,000 ew fiber subscribers added durig the quarter, brigig the total umber of FTTH subscribers to 369,000. I parallel, the Group cotiued its FTTH rollouts, with 400,000 ew coectible sockets istalled durig the first three moths of Broadbad ad Ultra-Fast Broadbad ARPU at 34.5, represetig a icrease of 10 euro cets compared with the first quarter of. ARPU for the Freebox Revolutio offerig remaied above Mobile busiess Reveue for the Mobile busiess saw aother period of growth i first-quarter 2017, advacig more tha 9% to 529 millio. This icrease was drive by 240,000 et adds, reflectig the success of the Group's Mobile commercial offers. The sigificat evets of the quarter for the Mobile busiess were as follows: 3 Excludig promotios. 3/6

4 A higher subscriber recruitmet level tha i first-quarter, with 240,000 et adds thaks to the Group s strategy of cotiually erichig its offers ad a promotioal offer lauched durig the period. I lie with the commitmet it made i 2012, Free cotiues to offer a greater umber of services at o extra cost to subscribers. For example, it is the first operator i Frace to offer roamig commuicatio all year roud (ulimited calls, texts ad MMS) from more tha 35 coutries, as well as 5GB/moth of mobile Iteret from all these destiatios, all for 15.99/moth for Freebox subscribers (or 19.99/moth for o-freebox subscribers). I the first three moths of 2017, Free had the highest umber of et adds i Frace for the 21 st quarter i a row. At March 31, 2017, the Group had 12.9 millio mobile subscribers, represetig a market share of over 18% 4. Commercial success of the Group's 4G offerig, with 6.3 millio 4G subscribers, represetig a icrease of aroud 400,000 over the quarter. Followig the same tred, 4G data usage icreased by more tha 20% i the first three moths of 2017, with average mothly data usage per 4G subscriber reachig 6 GB. These achievemets reflect the quality of the 4G experiece offered by the Free Mobile etwork, as illustrated by the fact that Free obtaied the best score for 4G coectios i Frace i the Perf mobile coectios performace survey for the 8 th cosecutive quarter. Accordig to a IFOP poll 5 coducted i April 2017, three out of four Frech people thik that ulimited 4G will become essetial. True to its pioeerig ad iovative image, Free was the first operator i Frace to iclude ulimited 4G i its per moth mobile pla for Freebox subscribers o March 21, As i, over 80% of et adds siged up to the Free Mobile Pla which icludes ulimited voice/sms/mms ad ulimited 4G Iteret (100 GB of 4G Iteret for o-freebox subscribers), leadig to a improved subscriber mix. Ogoig rapid deploymet of 4G frequecies, with some 1,500 sites ewly equipped to use 1,800 MHz ad aroud 100 ew sites equipped for 700 MHz. This itese deploymet has eabled the Group to icrease its 4G coverage rate of the Frech populatio by four percetage poits to over 80%. A 9% rise i Mobile services reveues i first-quarter 2017, represetig a slower growth figure tha i first-quarter due to a decrease i the use of text messages as mobile data usage rises. 4 Metropolita Frace excludig M2M. 5 IFOP poll methodology Quatitative poll coducted as part of a olie IFOP omibus survey From April 26 to 28, 2017 Amog 1,058 persos aged 15 or over represetative of the Frech populatio, icludig 841 persos (79%) equipped with their ow Smartphoe 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. 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, 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.). Free 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 5GB/moth of 3G mobile Iteret from all these destiatios). Free also icludes ulimited 4G i its pla for Freebox subscribers. As at March 31, 2017, Free had over 19 millio subscribers (6.5 millio Broadbad ad Ultra-Fast Broadbad subscribers ad 12.9 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