earnings release

EARNINGSRELEASE
March15,2016
ALTICE–FULLYEAR2015PROFORMA1CONSOLIDATEDRESULTS
• Best Group KPIs in Q4 since Altice IPO with positive operational
momentumineachmajormarket
o Overall Altice Group added 270k postpaid mobile customers and
130kfiberbroadbandcustomers
o France: mobile subscriber growth (+140k B2C postpaid net
additions) and stabilized fixed base (-6k) with continued fiber
customernetadditions(+78k)
o Portugal: continued convergent 4P/5P (+19k) and postpaid mobile
subscribergrowth(+49k)
o Suddenlink: strong customer relationship (+13k) and broadband
subscribergrowth(+21k)
o Dominican Republic added 7k fiber customers and a record 42k
postpaid mobile net additions while Israel reports lowest cable
customernetlosssinceAlticeIPO(-4k)
• Operational momentum setting basis for revenue trend improvement in
2016
• Strongfullyearfinancialperformancein2015withGroupadjustedEBITDA
up 18% and Operating Free Cash Flow up 33% (16% and 35% exSuddenlink,respectively)
• Achieved2015guidanceforNumericable-SFRandAlticeInternational3
1
FinancialsshowninthesebulletpointsareproformadefinedhereasresultsoftheAlticeNVGroupasifall
acquisitionshadoccurredon1/1/15,includingPortugalTelecomandSuddenlink(andexcludingCabovisao,
ONI,LaReunionandMayottemobileactivitiesasifthedisposalsoccurredon1/1/15).Segmentsshownona
standalonereportingbasis,Groupfiguresshownonaconsolidatedbasis
3
Numericable-SFRFY2015guidance:adjustedEBITDA>€3.85bnandEBITDA-Capex>€2.0bn;Altice
InternationalFY2015guidance:adjustedEBITDA>€1.925bnandcapex/salesinthehighteens(Altice
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EARNINGSRELEASE
March15,2016
• GroupadjustedEBITDAmarginexpandedby5.8ppYoYto38.1%in2015
as efficiency measures progress; all major businesses with best-in-class
marginscomparedtotheirpeergroup
• Acceleratedre-investmentsintofixedandmobilenetworks,andselective
content:
o France: leading 4G mobile site build out in France in Q4 2015 and
2016YTDgivingleading2015coverageprogression(from33%end2014to64%)andexpandedfiberbroadbandcoverageby1.3mfiber
homes passed in 2015 to total 7.7m, retaining #1 fiber coverage in
France(targeting22mhomespassedbytheendof2022)
o Portugal: build-out of national fiber network, ramp up in Q4 2015
withplantocoveranadditional3mhouseholdsandbusinessesata
rateof600kp.a.overthenextfiveyears
o Suddenlink:OperationGigaSpeed–well-advancednetworkupgrade
program to deliver next-generation broadband services across the
footprintby2017
o Acquisition of differentiated content and sports rights in both
FranceandPortugaltocomplementcommunicationsservices
• Successful Altice Group transformation including completion of Portugal
Telecom and entry into the US market with Suddenlink and CVC
(announced),aswellasstrategicpartnershipwithNextRadioTV
• Robust,diversifiedandlong-termcapitalstructure
o IncreasedproportionoffixedratedebtofAlticeEuropeto83%from
68%atQ3
InternationalguidanceupdatedaspartofQ32015resultsfollowingcompletionofPortugalTelecom
acquisition)
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EARNINGSRELEASE
March15,2016
o Maturity of €1.1bn of Corporate Facility extended by two years
(March2019)
March15,2016:AlticeNV(Euronext:ATCNAandATCBNA),todayannounces
financialandoperatingresultsfortheyearendedDecember31,2015.
Strongproforma2adjustedEBITDAandCashFlowgrowth
§ GroupRevenue€17,495m,down0.1%YoY5
o €11,038mFranceRevenue,down3.5%
o €4,324mInternationalRevenue,down0.4%6
o €2,181mUS(Suddenlink)Revenue,up24.2%7
o Sequentialrevenuetrendsandleadkeyperformanceindicators
pointingtoimprovingGrouprevenuetrendoutlookfor2016
§ GroupadjustedEBITDA€6,671m,up17.6%YoY8:
o €3,860mFranceadjustedEBITDA,up20.2%
o €1,933mInternationaladjustedEBITDA,up7.7%9
o €889mUS(Suddenlink)adjustedEBITDA,up29.3%10
§ GroupadjustedEBITDAmarginexpandedby5.8%ptsto38.1%;best-inclassmarginimprovementwithfurtherupside
o Francemarginexpandedby6.9%ptsto35.0%
o Internationalmarginexpandedby3.3%ptsto44.7%(Portugal
Telecommarginexpandedby4.3%ptsto41.2%-sector-leading
marginsamongEuropeanPTOs11)
5
GroupRevenuedeclined3.2%onaconstantcurrency(CC)basis
InternationalRevenuedeclined4.2%onCCbasis
7
US(Suddenlink)Revenueincreased3.7%onCCbasisto$2,420minlocalcurrency
8
GroupadjustedEBITDAincreased13.8%onCCbasis
9
InternationaladjustedEBITDAincreased3.2%onCCbasis
10
US(Suddenlink)adjustedEBITDAincreased8.0%onCCbasis
11
ComparingaveragedomesticmarginsofEuropeanPTOs(PublicTelecommunicationsOperators)including
BT,DeutscheTelekom,Elisa,KPN,Orange,Proximus,Swisscom,TDC,Telefonica,TelekomAustria,Telenorand
TeliaSonera
6
3
EARNINGSRELEASE
March15,2016
o USSuddenlinkmarginexpandedby1.5%ptsto40.7%-UScable
sector-leadingmargininQ412
§ GroupOperatingFreeCashFlow13of€3,550m,up33.3%YoY14with
growthcontributionsfromallreportingsegments
KeyStrategicUpdate
§ €2.5bndividendpaidbyNumericable-SFRonDecember22,2015.Altice
subsequently repaid vendor note (€1,977bn) put in place for the key
acquisition of Vivendi’s remaining 20% interest in Numericable-SFR
(Alticeheld78.14%ofthesharecapitalofAlticeattheendofDecember,
2015)
§ US:Completedacquisitionof70%stakeinSuddenlinkonDecember21,
2015
§ US: Acquisition of Cablevision pending regulatory reviews; expected to
closeQ22016
§ Completed sale of Cabovisao and ONI to Apax France on January 19,
2016
§ Altice Media: Completed acquisition of stake in NextRadioTV through
strategicpartnershipwithcompanyfounderandmajorshareholder;
o Tender offer closed and squeeze out of minority shareholders
completedonFebruary1,2016
12
ComparingaverageofComcast(CableCommunicationsbusinessonly),Charter,TWC,Cablevision,Mediacom
margins.
13
DefinedasEBITDAlessCapitalExpenditure,excludingspectrumcapexof€477minFrance
14
GroupOperatingFreeCashFlowincreased29.4%onCCbasis
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EARNINGSRELEASE
March15,2016
§ OnJanuary20,2016,AlticeannouncedthecreationofAlticeLabs,based
in Portugal, leading the innovation agenda for all Altice Group’s
operations.
§ In France, acquired a 5MHz block of paired spectrum in the 700MHz
bandfor€477m(includingfees)onNovember17,2015.
Dexter Goei, Chief Executive Officer of Altice, said: “We end 2015 delivering
the best quarterly KPIs since our IPO with all major operations seeing
significant improvements as a result of operational focus, integration and
investments.TheseimprovementsareinthecontextofGroupadjustedEBITDA
up 18% and Operating Free Cash Flow up 33% for 2015 (pro forma inclSuddenlink),significantlyhigherthanpeersoverthepastyear,withimproving
revenuetrendsineachlocalmarket.
We have strengthened our management team and during 2016 we will
continue to be very focused on further improving operational and financial
performance, integrating the businesses we have acquired and pursuing the
efficiency targets we have set out. Altice Group companies have best-in-class
margins with further upside as we continue our successful strategy based on
fixed/mobileandmediaconvergenceandtheimplementationofbestpractices
andefficienciesacrossallofouroperations.
Weremainconfidentthatacceleratinginvestmentsinbothfiberand4G+
infrastructure,aswellashighervaluegenerationthroughfocusontriple-and
quadrupleplaybundlesenhancedwithdifferentiatedcontentofferings,will
continuetodeliversuperiorresults.”
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EARNINGSRELEASE
March15,2016
Guidance2016
For 2016 we expect an improving trend in Altice Group revenue on a
consolidated basis (under the current Group perimeter at constant currency).
We expect mid-single digit growth in Group Adjusted EBITDA and Operating
FreeCashFlowgrowthflattoslightlydownreflectingacceleratedinvestments.
Contacts
HeadofInvestorRelations
NickBrown:+41797201503/[email protected]
HeadofCommunications
ArthurDreyfuss:+41799464931/[email protected]
Conferencecalldetails
Thecompanywillhostaconferencecallandwebcasttodiscusstheresultsat2.30pmCEST,
9.30amESTtoday.
Webcastlive:http://edge.media-server.com/m/p/wcqk5kpa
Conferencecalldialin:
France:+33176772228
UK:+442034271903
USA:+16462543360
6
EARNINGSRELEASE
March15,2016
FinancialPresentation
Altice N.V. (the “Company”, or the “Successor entity”) was created as a result of a cross-border
merger with Altice S.A. as per a board resolution dated August 9, 2015. Altice NV’s shares started
trading on Euronext Amsterdam from August 10, 2015 onwards. Altice NV is considered to be the
successorentityofAlticeS.A.andthusinheritsthecontinuityofAlticeS.A’sconsolidatedbusiness.
Altice N.V. and its subsidiaries have operated for several years and have from time to time made
significant equity investments in a number of cable and telecommunication businesses in various
jurisdictions. Therefore, in order to facilitate an understanding of the Company’s results of
operations,wehavepresentedanddiscussedtheproformaconsolidatedfinancialinformationofthe
Company (giving effect to each such significant acquisition as if such acquisitions had occurred by
January1,2014includingthefinancialsofNumericableGroupS.A.,AlticeHispaniolaS.A.(previously
Orange Dominicana S.A.), Tricom S.A., SFR, PT-Portugal and Suddenlink LLC) for the years ended
December31,2014andDecember31,2015(the“ProFormaConsolidatedFinancialInformation”).
This press release contains measures and ratios (the “Non-IFRS Measures”), including Adjusted
EBITDA and Operating Free Cash Flow, that are not required by, or presented in accordance with,
IFRSoranyothergenerallyacceptedaccountingstandards.WepresentNon-IFRSmeasuresbecause
webelievethattheyareofinterestfortheinvestorsandsimilarmeasuresarewidelyusedbycertain
investors,securitiesanalystsandotherinterestedpartiesassupplementalmeasuresofperformance
and liquidity. The Non-IFRS measures may not be comparable to similarly titled measures of other
companies, have limitations as analytical tools and should not be considered in isolation or as a
substituteforanalysisofour,oranyofoursubsidiaries’,operatingresultsasreportedunderIFRSor
other generally accepted accounting standards. Non-IFRS measures such as Adjusted EBITDA and
OperatingFreeCashFlowarenotmeasurementsofour,oranyofoursubsidiaries’,performanceor
liquidityunderIFRSoranyothergenerallyacceptedaccountingprinciples.Inparticular,youshould
notconsiderEBITDAasanalternativeto(a)operatingprofitorprofitfortheperiod(asdeterminedin
accordancewithIFRS)asameasureofour,oranyofouroperatingentities’,operatingperformance,
(b) cash flows from operating, investing and financing activities as a measure of our, or any of our
subsidiaries’,abilitytomeetitscashneedsor(c)anyothermeasuresofperformanceunderIFRSor
othergenerallyacceptedaccountingstandards.Inaddition,thesemeasuresmayalsobedefinedand
calculateddifferentlythanthecorrespondingorsimilartermsunderthetermsgoverningourexisting
debt.
Financialandstatisticalinformationandcomparisons
Financial and statistical information is at and for the year ended December 31, 2015, unless
otherwisestated.WherefinancialorstatisticalinformationisgivenfortheyearendedDecember31,
2015,anycomparisonsaretotheyearendedDecember,2014,unlessotherwisestated.
7
EARNINGSRELEASE
March15,2016
SummaryFinancials
ProformaInformation
Year ended December 31, 2015
FOT
Others
Total
International
694.8
694.8
195.1
(8.8)
186.3
163.4
(15.7)
147.7
4,323.9
(28.4)
4,295.5
11,038.1
(20.2)
11,017.9
15,362.0
(48.6)
15,313.4
430.5
46.6%
360.4
51.9%
86.7
44.4%
87.4
53.5%
1,932.8
44.7%
3,860.2
35.0%
5,793.0
37.7%
(0.5)
967.3
41.3%
430.5
46.6%
360.4
51.9%
8.8
95.5
51.3%
(17.0)
70.5
47.7%
(8.7)
1,924.2
44.8%
26.5
3,886.7
35.3%
Consolidated Group Capex
o/w
- Spectrum/Satellite Capacity
- Exclusive Content
Capex excluding capacity/content
331.2
284.9
124.1
50.8
40.9
832.0
2,333.7
(51.5)
(59.9)
720.6
Standalone EBITDA-Capex [ex-spectrum]
In EUR millions
Portugal
Israel
Standalone revenues
Intersegment revenue adjustment
Consolidated Group revenues
2,347.4
(3.9)
2,343.5
923.3
923.3
Standalone adjusted EBITDA
% margin
967.8
41.2%
Intersegment EBITDA adjustment
Consolidated Group adjusted EBITDA
% margin
DR
(51.5)
279.7
(42.4)
242.5
124.1
50.8
(17.5)
23.4
636.7
145.6
236.3
35.8
46.5
1,100.8
France
Total
Europe
(477.0)
USA
2,181.2
2,181.2
Corporate
Total
Altice
N.V.
20.4
(19.6)
0.8
17,563.6
(68.2)
17,495.4
888.8
40.7%
(11.0)
-53.8%
6,670.8
38.0%
17.8
5,810.9
37.9%
888.8
40.7%
(17.8)
(28.8)
0.0
6,670.9
38.1%
3,165.8
431.8
0.0
3,597.7
(528.5)
(59.9)
3,009.3
1,856.7
(528.5)
(59.9)
2,577.4
431.8
0.0
2,003.5
3,104.3
456.9
(11.1)
3,550.2
Year ended December é31, 2014
Portugal
Standalone revenues
Intersegment revenue adjustment
Consolidated Group revenues
2,533.0
2,533.0
Israel
DR
FOT
Others
Total
International
France
Total
Europe
857.3
857.3
607.1
607.1
189.0
(2.5)
186.6
152.9
(6.4)
146.5
4,339.3
(8.8)
4,330.5
11,436.0
(8.1)
11,427.9
15,775.4
(16.9)
15,758.5
USA
1,756.2
1,756.2
Corporate
Total
Altice
N.V.
3.0
(3.0)
-
17,534.6
(20.0)
17,514.7
Standalone adjusted EBITDA
% margin
934.3
36.9%
411.8
48.0%
283.3
46.7%
81.6
43.2%
83.4
54.6%
1,794.4
41.4%
3,212.1
28.1%
5,006.5
31.7%
687.6
39.2%
(23.2)
5,671.0
32.3%
Intersegment EBITDA adjustment
Consolidated Group adjusted EBITDA
% margin
934.3
36.9%
411.8
48.0%
283.3
46.7%
4.6
86.2
46.2%
(5.2)
78.2
53.4%
(0.6)
1,793.8
41.4%
3.4
3,215.5
28.1%
2.8
5,009.3
31.8%
687.6
39.2%
(2.7)
(25.9)
0.1
5,671.1
32.4%
Consolidated Group Capex
o/w
- Spectrum/Satellite Capacity
- Exclusive Content
Capex excluding capacity/content
397.8
224.7
69.3
47.0
56.1
795.0
1,893.5
2,688.5
320.6
-
3,009.1
397.8
(27.8)
196.9
69.3
47.0
(11.2)
44.9
(39.0)
756.0
-
(39.0)
2,970.1
Standalone EBITDA-Capex [ex-spectrum]
536.5
187.1
214.0
34.6
27.3
999.4
8
1,893.5
(39.0)
2,649.5
320.6
1,318.6
2,318.1
367.0
(23.2)
2,661.9
EARNINGSRELEASE
March15,2016
Year ended December 31, 2015
In EUR millions
Revenue Fixed - B2C
Revenue Fixed - B2B
Revenue Wholesale
Revenue Mobile - B2C
Revenue Mobile - B2B
Other revenue content
Other revenue datacenter
Other revenue
Total Standalone revenues
Intersegment eliminations
Consolidated Group revenues
Portugal
696.7
448.2
291.3
581.7
214.7
69.7
45.1
2,347.4
(3.9)
2,343.5
Israel
DR
FOT
645.3
72.9
151.0
54.0
923.3
923.3
106.9
37.8
62.7
414.0
50.7
22.7
694.8
694.8
73.3
14.7
5.8
67.5
4.4
29.3
195.1
(8.8)
186.3
Others
71.3
13.3
4.3
1.3
24.2
16.1
32.9
163.4
(15.7)
147.7
Total
International
1,593.5
586.9
364.2
1,215.6
323.8
93.9
16.1
129.9
4,323.9
(28.4)
4,295.5
France
Total
Europe
USA
2,873.1
1,401.8
1,328.1
4,722.2
712.9
11,038.1
(20.2)
11,017.9
4,466.7
1,988.8
1,692.3
5,937.8
1,036.7
93.9
16.1
129.9
15,362.0
(48.6)
15,313.4
1,720.1
278.5
59.8
122.8
2,181.1
2,181.1
Corporate
20.4
20.4
(19.6)
.8
Total
Altice
N.V.
6,186.7
2,267.2
1,752.1
5,937.8
1,036.7
93.9
16.1
273.1
17,563.6
(68.2)
17,495.4
Year ended December 31, 2014
In EUR millions
Revenue Fixed - B2C
Revenue Fixed - B2B
Revenue Wholesale
Revenue Mobile - B2C
Revenue Mobile - B2B
Other revenue
Total standalone revenues
Intersegment eliminations
Consolidated Group revenues
Portugal
Israel
699.2
493.6
326.9
627.5
222.9
163.0
2,533.0
2,533.0
614.1
66.4
128.6
48.3
857.3
857.3
DR
92.4
42.9
33.9
370.7
42.0
25.3
607.1
607.1
FOT
75.0
15.8
5.8
76.5
4.7
11.3
189.0
(2.5)
186.6
Others
74.8
14.5
1.3
62.2
152.9
(6.4)
146.5
Total
International
1,555.5
633.1
366.5
1,204.5
317.8
261.8
4,339.3
(8.8)
4,330.5
France
Total
Europe
USA
2,917.7
1,433.5
1,342.0
4,937.0
805.8
11,436.0
(8.1)
11,427.9
4,473.2
2,066.7
1,708.6
6,141.5
1,123.7
261.8
15,775.4
(16.9)
15,758.5
1,395.0
210.1
40.3
110.8
1,756.2
1,756.2
Corporate
3.0
3.0
(3.0)
-
NotestoSummaryFinancials
(1)
Portugal is Portugal Telecom only for the pro forma financial information shown in the tables above, excluding Cabovisao and ONI (disposals
completedJanuary19,2016).
(2)
FortheFrenchOverseasTerritories(FOT),cablerevenueincludesrevenuesfromcableservicesweprovideinGuadeloupeandMartiniqueaswellas
xDSLbasedbroadbandInternet(includingIPTV)andfixed-linetelephonyservicesweprovideinGuadeloupe,MartiniqueandFrenchGuiana.TheLa
RéunionandMayottemobilebusinessesweresoldonJuly31,2015andsoareexcludedfromtheproformafinancialinformationshowninthe
tablesabove.
(3) Other comprises our B2B telecommunications solutions business and datacentre operations in Switzerland (Green and Green Datacenter), our
datacentreoperationsinFrance(Auberimmo)andourcontentproductionanddistributionbusinessinFrance(MaChaîneSport,MCS,andSportv).
(4) AdjustmentsarerelatedtotheeliminationofintercompanytransactionsbetweencompaniesoftheAlticeGroup.Segmentsareshownonbotha
standalonebasisandGroupconsolidatedbasisforreconciliation.
(5) AdjustedEBITDAisdefinedasoperatingprofitbeforedepreciationandamortization,restructuringandnon-recurringcostsandotherspecificitems
suchasequitybasedcompensationorcertainbusinesstaxesinFrance(CVAE).
9
Total
Altice
N.V.
5,868.1
2,276.8
1,748.8
6,141.5
1,123.7
375.7
17,534.6
(20.0)
17,514.7 EARNINGSRELEASE
March15,2016
GroupKPIs
Q4-15[3months]
France
Total
FIBER/NON-FIBERSYSTEMS
HomesPassed
FiberHomesPassed
9,323
7,711
4,742
3,210
2,395
655
234
178
20,738
2,237
3,050
2,395
512
234
171
16,310
Fiberuniquecustomers
Fibercustomernetadds
1,814
78
404
8
1,467
13
1,027
(4)
143
7
104
(2)
55
2
5,014
102
3P/4P/5Pcustomers
3P/4P/5Ppenetration
1,403
364
411
483
40
50
43
2,794
77%
90%
28%
47%
28%
48%
78%
56%
TotalFiberRGUs
PayTV
PayTVnetadds
PayTVpenetration
Broadband
Broadbandnetadds
Broadbandpenetration
Telephony
Telephonynetadds
Telephonypenetration
4,840
1,593
76
1,166
2,892
2,178
277
188
141
11,682
396
1,093
824
128
90
55
4,179
8
(1)
(4)
4
(2)
2
83
21%
18%
36%
34%
25%
39%
32%
26%
1,634
89
371
1,223
694
69
53
43
4,086
9
21
-
8
(0)
3
130
21%
17%
40%
29%
13%
22%
25%
25%
1,614
90
399
577
660
81
45
43
3,418
8
15
1
10
(0)
3
127
21%
18%
19%
28%
16%
19%
25%
21%
2.7
2.9
2.0
2.1
1.9
1.8
2.6
2.3
€39.3
€40.1
€103.6
€54.6
€36.7
€47.3
€ 62.1
-
TotalDSL/Non-FiberRGUs(Incl.DTH) 11,756
Broadband
4,538
Telephony
4,434
TV
2,784
2,763
741
1,169
852
-
-
300
93
-
207
-
-
-
138
52
75
11
14,957
-
15,137
6,252
-
1,229
3,894
5
218
26,735
12,604
2,676
-
1,199
803
5
148
17,435
140
48
-
38
42
0
4
273
2,533
3,576
-
30
3,092
-
70
9,300
€22.2
€6.9
-
€11.9
€9.7
€23.3
€ 30.5
RGUsperfibercustomer
FiberARPU
MOBILEB2C
Totalmobilesubscribers
Postpaidsubscribers
Postpaidnetadds
Prepaidsubscribers
MobileARPU
AsandforthequarterendedDecember31,2015
inthousandsexceptpercentagesandasotherwiseindicated
Dominican
Belgiumand FrenchOverseas
Portugal
Suddenlink
Israel
Republic
Luxembourg
Territories
10
5,424
5,885
3,647
-
EARNINGSRELEASE
March15,2016
NotestoGroupKPIs
(1)
TotalHomesPassedinFranceexcludesDSLhomesoutsideofNumericable-SFR’sfiberfootprint.PortugaltotalHomesPassedincludesDSLhomes
enabledforIPTVoutsideofPortugalTelecom’sfiberfootprint.DominicanRepublictotalHomesPassedincludesDSLhomesoutsideofthefiber
footprint.
(2)
Fiberuniquecustomersrepresentsthenumberofindividualenduserswhohavesubscribedforoneormoreofourfiberbasedservices(including
pay television, broadband or telephony), without regard to how many services to which the end user subscribed. It is calculated on a unique
premisesbasis.ThetotalnumberofFibercustomersdoesnotincludesubscriberstoeitherourmobileorISPservices.FiberCustomersforFrance
excludeswhite-labelsubscribers.ForSuddenlinkitreferstothetotalnumberofuniquecustomerrelationships.
(3)
RGUs,orRevenueGeneratingUnits,relatetosourcesofrevenue,whichmaynotalwaysbethesameascustomerrelationships.Forexample,one
person may subscribe for two different services, thereby accounting for only one subscriber, but two RGUs. RGUs for pay television and
broadbandarecountedonaperservicebasisandRGUsfortelephonyarecountedonaperlinebasis.ForSuddenlinkthisisequivalenttoPSUs,or
PrimaryServiceUnits.
(4)
Fiberpenetrationratesforourpaytelevision,broadbandandtelephonyservicesarepresentedasapercentageoffiberhomespassed.
(5)
ARPUisanaveragemonthlymeasurethatweusetoevaluatehoweffectivelywearerealizingrevenuefromsubscribers.ARPUiscalculatedby
dividingtherevenuefortheserviceprovidedaftercertaindeductionsfornon-customerrelatedrevenue(suchashostingfeespaidbychannels)
fortherespectiveperiodbytheaveragenumberofcustomerrelationshipsforthatperiodandfurtherbythenumberofmonthsintheperiod.The
averagenumberofcustomerrelationshipsiscalculatedasthenumberofcustomerrelationshipsonthefirstdayintherespectiveperiodplusthe
number of customer relationships on the last day of the respective period, divided by two. For Israel and Dominican Republic, ARPU has been
calculatedbyusingthefollowingexchangerates:averagerateforQ4-15,€0.235=ILS1.00,€0.020=1DOP.
(6)
MobilesubscribersisequaltothenetnumberoflinesorSIMcardsthathavebeenactivatedonourmobilenetworks.InIsrael,thetotalnumberof
mobilesubscribersincludesB2CandB2B(B2Bisnotdisclosedseparately)splitbetweeniDENandUMTSservicesasfollows:
th
AsofDecember30 2014
MobileSubscribers
iDEN....................................................................................................................................................................................
172
UMTS..................................................................................................................................................................................
802
138
1,091
889
Total.........................................................................................................................................................................
1,229
2015
inthousands
11
EARNINGSRELEASE
March15,2016
FinancialandOperationalReview-ProFormaandAggregatedBasis
foryearendedDecember31,2015comparedtoyearendedDecember31,
2014
Group
Total Group revenue of €17,495m decreased by 0.1% YoY on a consolidated
basis in 2015 as growth in US and exchange rate tailwinds offset declines in
FranceandPortugal.Onaconstantcurrencybasis,revenuedeclinedby3.2%.
GroupadjustedEBITDAincreasedby17.6%YoYto€6,671mduetothestrong
growth in France (+20.2% on a standalone basis), US (+29.3%) and Portugal
(+3.6%). On a constant currency basis Group adjusted EBITDA was up 13.8%.
Group adjusted EBITDA margin expanded 5.8% pts YoY to 38.1%. In Q4 2015
themarginimprovementYoYwas7.6%ptsinFrance,9.3%ptsinPortugal,and
2.2%ptsinUS.AlticeInternational’sadjustedEBITDAgrowthwas8.9%YoYin
Q4 2015 at constant currency driven by strong growth in the Dominican
RepublicandefficiencysavingsachievedsofaratPortugalTelecom.
Group Operating Free Cash Flow increased 33.3% to €3,550m, or 29.4% on a
constantcurrencybasis,withgrowthcontributionsfromallreportingsegments
France
TotalrevenueinFranceof€11,038mdecreasedby3.5%YoYonastandalone
basisin2015duetodeclinesinboththeB2CandB2Bdivisions.Adjusted
EBITDAwasupverystrongly20.2%YoYto€3,860mwithfullyearmargins
expandingby6.9%ptsYoYto35.0%.Therevenuetrendisexpectedtofurther
improvein2016basedonrecentoperationalperformancetrends:
12
EARNINGSRELEASE
March15,2016
o SignificantlyimprovedmobileperformanceinQ42015including
subscribergrowth(140kB2Cpostpaidnetadditions;54ktotalB2C
netadditions)andstillachievedfinancialguidanceforFY2015
o GrowingfibercustomeradditionsandDSLmigrations(+78kunique
fibercustomeradditionsinQ4).TotalfiberandDSLcustomerbase
almostflatqoq(-6k)asDSLattritiondeclined
o BetterB2BunderlyingtrendsinH22015inFixedDataandVoice
andMobilewhileICTcontinuestoexpand
o Acceleratere-investingofsavingstoreignitegrowth
§ Upgraded3Gsitesforbettervoicequalityandhighest
numberof4GsitesrolledoutinthemarketinQ4(1,080)
andin2016YTD(364);plantoreachnetworkparitywith
marketleaderby2017
§ Extendedleadinfibercoverageby1.3mhomespassedin
2015toatotalof7.7m,acceleratingrollouttoc.2mp.a.
from2016onwards
§ AcquisitionofNextRadioTVstakeandexclusivesportsrights
includingEnglishPremierLeague,Frenchbasketballleague
(“PROA”),EnglishRugbyPremierLeagueandWorldSki
Championshiptoadddifferentiatedcontenttoour
communicationsservices
o LaunchedZive,the#1S-VODserviceinFrancewithover1million
customers
o Ontracktooutperformsynergyandefficiencytargetsannounced
atthetimeoftheSFRacquisition
13
EARNINGSRELEASE
March15,2016
Portugal(PortugalTelecomonly)
Achievingfinancialtargets,includingacquisitionopexsavingtarget16onrunratebasis(€120m):
o AdjustedEBITDAgrewby3.6%YoYwithmarginsat41.2%up4.3%
pts(Q4growthof16.2%YoYandmarginsup9.3pts)
o Challengingrevenuetrenddown7.3%YoYwithB2Cdown3.6%
andB2Bdown7.5%;expectrevenuetrendtoimprovein2016
§ BetterB2Ctrendin2016withresilientcustomerbaseand
marketpriceincreasesinJanuary2016
§ StrongerB2Bsegment(peakdeclineinQ22015)withno
furtherkeycorporateaccountlossesaftertakingownership
(H22015)andmarketsharegainsintheSoHo/SMEmarket
o Convergencestrategywith54%ofourfibercustomersnow4P/5P
customers.90%ofourfibercustomersare3Pormorecustomers
o Acceleratingfiberrollouttoreach100%ofthepopulationby2020
andcontentinvestments(e.g.FCPortorights)
16
Targetfor€200mofopexsavings,€100mofwhichwasexpectedinthefirst12-18monthsfromacquisition.
14
EARNINGSRELEASE
March15,2016
US(Suddenlink)
Provengrowthtrackrecord(2015revenueup3.7%YoYonaCCbasis),
acceleratingattheendof2015(+4.5%YoYinQ4)astheimpactfromdropping
Viacomcontentattheendof2014increasinglyfallsaway.2.8%growthYoYin
residentialcustomerrelationshipsanddynamicB2Bbusiness
o StrongsupportofOperationGigaSpeed–upgradingthenetwork
tomake1Gbpsservicesavailableto90%ofthefootprintby2017.
o Introductionin2H2016ofournewall-in-onehomehubbasedon
LaBoxtechnologydeployedaroundtheGroup
o Reiteratemediumtermefficiencytargets($215mofopexsavings
and$65mofcapexsavings
Israel
BestKPIssinceAlticeIPO;Broadbandcustomerbasestabilized,lowestcable
customerlosses(-4k):
o Reducedchurnfrombettercustomerserviceandretentiontools
(churndown5%pts)
o Continuedpostpaidmobilegrowth(+38k,+35kB2CUMTS)
o AdjustedEBITDAgrew4.5%YoYonareportedbasisbutwasdown
5.0%onCCbasisduetoimpactofcontinuedintensecompetition
inthemobilesegment(cableadjustedEBITDAmarginsof59%)
DominicanRepublic
Continuedstrongcommercialmomentumandfinancialperformancewith
Revenuegrowthof14.4%YoY(2.1%onCCbasis)andadjustedEBITDAgrowing
by27.2%YoY(13.5%onCCbasis):
15
EARNINGSRELEASE
March15,2016
o Bestmobilepostpaidnetadditionssinceacquisition(+42k)
o Further3Gand4Gnetworkcoverageexpansion(90%3G
populationcoverageachievedinQ12016,44%4Gcoverageatend
of2015)
o ReachedIPOtargetof550khomespassedupgradedforfiber;
+182kadditionalfiberhomesin2015,targetingfurther200kin
2016
o OngoingDSLtofibermigrationathigherARPUsandmarginswith
tripleplaypenetrationincreasing3xsincetheacquisition
Sharesoutstanding
AsatDecember31,2015,AlticeN.V.had841,244,925Asharesand
272,280,241Bsharesoutstanding.
16
EARNINGSRELEASE
March15,2016
ConsolidatedProFormaNetDebtasofDecember31,2015
AlticeLuxembourg(HoldCo)
SFR-SeniorNotes(EUR)
SFR-SeniorNotes(USD)
PT-SeniorNotes(EUR)
PT-SeniorNotes(USD)
DrawnRCF
SwapAdjustment
AlticeLuxembourgGrossDebt
AvailableCash
AlticeLuxembourgNetDebt
UndrawnRCF
WACD(%)
AlticeFrance
USDNotes2019
USDNotes2022
USDNotes2024
EURNotes2022
EURNotes2024
USDTermLoan
EURTermLoan
USDTLJul15Refi
EURTLJul15Refi
USDTLOct15Div
EURTLOct15Div
DrawnRCF
OtherDebt(EUR)
SwapAdjustment
AlticeFranceGrossDebt
AvailableCash
AlticeFranceNetDebt
UndrawnRCF
WACD(%)
Amount
(local
currency)
EUR2,075m
USD2,900m
EUR750m
USD1,480m
Amount
(local
currency)
USD2,400m
USD4,000m
USD1,375m
EUR1,000m
EUR1,250m
USD2,574m
EUR1,881m
USD550m
EUR300m
USD1,340m
EUR500m
EUR450m
EUR212m
Actual
2,075
2,664
750
1,359
(617)
6,231
(5)
6,225
200
7.0%
Actual
2,204
3,674
1,263
1,000
1,250
2,364
1,881
505
300
1,231
500
450
212
(2,080)
14,755
(355)
14,401
675
4.7%
17
Actual
Coupon/
Margin
7.250%
7.750%
6.250%
7.625%
Maturity
2022
2022
2025
2025
6,231
(5)
6,225
Actual
Coupon/
Margin
4.875%
6.000%
6.250%
5.375%
5.625%
L+3.750%
E+3.750%
L+3.81%
E+3.81%
L+4.00%
E+4.00%
E+3.25%
Maturity
2019
2022
2024
2022
2024
2020
2020
2022
2022
2023
2023
2019
14,755
(355)
14,401
EARNINGSRELEASE
March15,2016
ALTICEINTERNATIONAL
HOTUnsecuredNotes(NIS)
GreenDataCenterDebt(CHF)
SeniorSecuredNotes(USD)
SeniorSecuredNotes(EUR)
TermLoan(USD)
DR-SeniorSecuredNotes(USD)
DR-SeniorSecuredNotes(EUR)
PT-TermLoan(EUR)
PT-TermLoan(USD)
PT-SeniorSec.Notes(EUR)
PT-SeniorSec.Notes(USD)
TLJul15Refi(EUR)
DrawnRCF
PTLeases
SwapAdjustment
AlticeInternationalSeniorDebt
SeniorNotes(USD)
SeniorNotes(EUR)
DR-SeniorNotes(USD)
PT-SeniorNotes(USD)
SwapAdjustment
AlticeInternationalTotalDebt
Cash-AlticeInternational
AlticeInternationalNetTotalDebt
UndrawnRCF
WACD(%)
TotalAlticeLuxConsolidatedDebt
TotalCashALux
TotalAlticeLuxConsolidatedNetDebt
WACD(%)
Suddenlink
NonExtendedTermLoan
ExtendedTermLoan
NewSn.Sec.Notes
SuddenlinkSec.Debt
SeniorNotesdue2020
SeniorNotesdue2021
NewSeniorNotes
NewSeniorHoldcoNotes
SuddenlinkGrossDebt
Cash-Suddenlink
SuddenlinkNetDebt
UndrawnRCF
WACD(%)
Amount
(local
currency)
NIS1,063m
CHF43m
USD460m
EUR210m
USD1,013m
USD900m
EUR300m
EUR398m
USD498m
EUR500m
USD2,060m
EUR450m
EUR160m
EUR67m
USD425m
EUR250m
USD400m
USD385m
Amount
(local
currency)
USD1,481m
USD815m
USD1,100m
USD1,500m
USD1,250m
USD300m
USD320m
Amount
(€mequivalent)
Actual
250
40
423
210
931
827
300
398
457
500
1,892
450
160
67
(185)
6,719
390
250
367
354
28
8,108
(266)
7,842
824
6.0%
Actual
29,094
(626)
28,468
Actual
Actual
18
Maturity
3.90-6.90%
L+1.700%
7.875%
8.000%
L+4.500%
6.500%
6.500%
E+4.250%
L+4.250%
5.250%
6.625%
E+3.500%
E+4.000%
2018
2022
2019
2019
2019
2022
2022
2022
2022
2023
2023
2022
2019
9.875%
9.000%
8.125%
7.625%
2020
2023
2024
2025
Coupon/
Margin
Maturity
L+2.813%
L+3.250%
5.375%
2019
2022
2023
6.375%
5.125%
7.750%
7.750%
2020
2021
2025
2025
8,108
(266)
7,842
29,094
(626)
28,468
5.5%
1,360
749
1,010
3,120
1,378
1,148
276
294
6,215
(79)
6,136
321
5.3%
Coupon/
Margin
3,120
6,215
(79)
6,136
EARNINGSRELEASE
March15,2016
AlticeNVProformaNetLeverageReconciliationasofDecember31,2015
AlticeGroupexc.CVC
ALUX
SL
ANV/ACF*
GrossDebtConsolidated
29,094
6,215
1,088
NetDebtConsolidated
28,468
6,136
958
LTMNC-SFRStandalone/SuddenlinkStandalone
3,860
889
LTMAlticeInternationalStandalone
1,933
ALuxCorporatecosts/consolidationadjustments
(7)
ANVCorporatecosts/consolidationadjustments
(4)
LTMEBITDAConsolidated
5,786
889
(4)
GrossLeverage(LTMexcludingsynergies)
5.0x
7.0x
NetLeverage(LTMexcludingsynergies)
4.9x
6.9x
*Excludesc.€7.7bnrestrictedcashforCVCand$1,829m(€1,680m)cashraisedforCablevision.
19
AlticeGroup
36,398
35,562
6,671
5.5x
5.3x
EARNINGSRELEASE
March15,2016
NOTANOFFERTOSELLORSOLICITATIONOFANOFFERTOPURCHASESECURITIES
Thispressreleasedoesnotconstituteorformpartof,andshouldnotbeconstruedas,anofferorinvitationto
sellsecuritiesofAlticeN.V.oranyofitsaffiliates(collectivelythe“AlticeGroup”)orthesolicitationofanoffer
tosubscribefororpurchasesecuritiesoftheAlticeGroup,andnothingcontainedhereinshallformthebasisof
or be relied on in connection with any contract or commitment whatsoever. Any decision to purchase any
securities of the Altice Group should be made solely on the basis of the final terms and conditions of the
securitiesandtheinformationtobecontainedintheofferingmemorandumproducedinconnectionwiththe
offering of such securities. Prospective investors are required to make their own independent investigations
and appraisals of the business and financial condition of the Altice Group and the nature of the securities
before taking any investment decision with respect to securities of the Altice Group. Any such offering
memorandummaycontaininformationdifferentfromtheinformationcontainedherein
FORWARD-LOOKINGSTATEMENTS
Certain statements in this press release constitute forward-looking statements within the meaning of the
PrivateSecuritiesLitigationReformActof1995.Theseforward-lookingstatementsinclude,butarenotlimited
to, all statements other than statements of historical facts contained in this presentation, including, without
limitation,thoseregardingourintentions,beliefsorcurrentexpectationsconcerning,amongotherthings:our
futurefinancialconditionsandperformance,resultsofoperationsandliquidity;ourstrategy,plans,objectives,
prospects,growth,goalsandtargets;andfuturedevelopmentsinthemarketsinwhichweparticipateorare
seeking to participate. These forward-looking statements can be identified by the use of forward-looking
terminology,includingtheterms“believe”,“could”,“estimate”,“expect”,“forecast”,“intend”,“may”,“plan”,
“project” or “will” or, in each case, their negative, or other variations or comparable terminology. Where, in
any forward-looking statement, we express an expectation or belief as to future results or events, such
expectationorbeliefisexpressedingoodfaithandbelievedtohaveareasonablebasis,buttherecanbeno
assurance that the expectation or belief will result or be achieved or accomplished. To the extent that
statements in this press release are not recitations of historical fact, such statements constitute forwardlookingstatements,which,bydefinition,involverisksanduncertaintiesthatcouldcauseactualresultstodiffer
materiallyfromthoseexpressedorimpliedbysuchstatements.
FINANCIALMEASURES
This press release contains measures and ratios (the “Non-IFRS Measures”), including EBITDA and Operating
FreeCashFlowthatarenotrequiredby,orpresentedinaccordancewith,IFRSoranyothergenerallyaccepted
accounting standards. We present Non-IFRS or any other generally accepted accounting standards. We
presentNon-IFRSmeasuresbecausewebelievethattheyareofinterestfortheinvestorsandsimilarmeasures
arewidelyusedbycertaininvestors,securitiesanalystsandotherinterestedpartiesassupplementalmeasures
ofperformanceandliquidity.TheNon-IFRSmeasuresmaynotbecomparabletosimilarlytitledmeasuresof
other companies, have limitations as analytical tools and should not be considered in isolation or as a
substitute for analysis of our, or any of our subsidiaries’, operating results as reported under IFRS or other
generally accepted accounting standards. Non-IFRS measures such as EBITDA and Operating Free Cash Flow
are not measurements of our, or any of our subsidiaries’, performance or liquidity under IFRS or any other
generallyacceptedaccountingprinciples.Inparticular,youshouldnotconsiderEBITDAasanalternativeto(a)
operatingprofitorprofitfortheperiod(asdeterminedinaccordancewithIFRS)asameasureofour,oranyof
ouroperatingentities’,operatingperformance,(b)cashflowsfromoperating,investingandfinancingactivities
as a measure of our, or any of our subsidiaries’, ability to meet its cash needs or (c) any other measures of
performanceunderIFRSorothergenerallyacceptedaccountingstandards.Inaddition,thesemeasuresmay
alsobedefinedandcalculateddifferentlythanthecorrespondingorsimilartermsunderthetermsgoverning
ourexistingdebt.
20
EARNINGSRELEASE
March15,2016
EBITDA,OperatingFreeCashFlowandsimilarmeasuresareusedbydifferentcompaniesfordifferingpurposes
and are often calculated in ways that reflect the circumstances of those companies. You should exercise
cautionincomparingEBITDAandOperatingFreeCashFlowasreportedbyustoEBITDAandOperatingFree
Cash Flow of other companies. EBITDA as presented herein differs from the definition of “Consolidated
Combined EBITDA” for purposes of any the indebtedness of an Altice Issuer. The information presented as
EBITDAisunaudited.Inaddition,thepresentationofthesemeasuresisnotintendedtoanddoesnotcomply
with the reporting requirements of the U.S. Securities and Exchange Commission (the “SEC”) and will not be
subject to review by the SEC; compliance with its requirements would require us to make changes to the
presentationofthisinformation.
21