This is after publishing bullish H1 results and based on the number of fixed and mobile subscribers
iliad Group’s H1 revenues were up 10.3% in H1, with 1,318,000 new mobile and fixed-line subscribers added during the period. Iliad says this makes the Group Europe’s fifth-largest operator, based on the number of subscribers. It now has 40 million mobile subscribers across its opcos and 10 million fixed line, making a total of 50 million.
In France revenues rose 9.6% (9.1% in Q2) while in Poland income was up 12% year on year (10.3% in Q2), propelled by 4.6% like-for-like growth and a favorable currency exchange rate. Italy “maintained its strong momentum”, with revenues climbing 11.5% (10.2% in Q2).
Formidable in France
The group says in its home market, its growth has been fuelled in France by the commercial success of its Freebox Ultra launched in January. It claims that with this launch, “Free [its brand name in the French and Italian markets] is the first operator in the world to launch Wi-Fi 7 on a large scale”.
The operator says another reason for its growth is keeping its pledge not to raise the price of either of its two long-standing mobile plans which cost €2 and €19.99 a month. According to “international estimates” Free added the most mobile and fixed subscribers, “against a backdrop of a volatile and low-volume market”.
In the second quarter, it gained 120,000 net new mobile subscribers (185,000 on 4G/5G plans), 40,000 net new broadband and Ultra-Fast Broadband subscribers, and 189,000 new fibre subscribers. At the end of June, more than 75% of Free’s mobile subscribers were on the 4G/5G plan and more than 78% of Freebox subscribers had Free Fiber.
Player in Poland
In Poland, Play [its Polish mobile brand] delivered a robust Q2 performance, continuing to gain market share in mobile, in terms of subscriptions (62,000 net new subscribers) and prepaid cards (up by 67,000). Iliad says it had the most net gains during the period. It also added 17,000 fixed customers, “representing moderate growth as a result of fierce competition”.
Success in Italy
In Italy, iliad Italia “maintained its position as net add leader in the mobile market, for the 25th consecutive quarter, with 279,000 net new Mobile subscribers joining iliad Italia in Q2,” despite intense competition. It also recorded the highest net additions for fixed connections with 35,000 new subscribers.
The numbers
Consolidated earnings before interest, taxes and depreciation and amortization, but after leases (EBITDAaL) for the first half of 2024 rose sharply to €1.86 billion, representing growth of 13.2% for the first six months of the year and 14.1% in the second quarter. The latter includes the group’s investment in Irish infrastructure company Eir.
EBITDAaL margin widened by 80 bps to 37.8%, with strong increases registered in each of the Group’s three geographies: 11% in France, 26% in Italy and 15% in Poland (up 7.3% in local currency).
On a last 12-month basis (June 2023 to June 2024), the Group’s capex amounted to €1.86 billion, representing 19% of its revenues. It says this is to fund it priorities of continuing 5G roll-out, to support growth in B2C and B2B, and “step up our investments in artificial intelligence through the acquisition of computing capacity and the expansion of our data centers”.
Thomas Reynaud, CEO of the iliad Group (pictured), said it has “reached a historic milestone by becoming one of Europe’s top five operators. We now count 50 million subscribers in France, Poland and Italy, and as many as 61 million with our investment in Swedish operator Tele2.
“The Odyssey 2024 plan, which has guided our roadmap over the past five years, has come to fruition. And our next Odyssey will be forged by ongoing innovation, investing in our 5G and fiber networks, and strengthening our Cloud and datacenter activities.”