Altice France Holding S.A (ALTICE) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined 5.2% year-over-year to €2,542 million, with all segments showing negative growth.

• Adjusted EBITDA fell 7.5% year-over-year to €913 million, reflecting operational headwinds.

• Capex was €496 million, down 8.7% year-over-year, resulting in operating free cash flow of €418 million.

• Focus remains on deleveraging the balance sheet amid a competitive French residential market and construction slowdown.

• Pro forma results exclude Altice Media and reflect UltraEdge S.A.S. sale.

Financial highlights

• Residential services revenue decreased 0.2% year-over-year; business services dropped 12.8%; equipment sales fell 10.5%.

• Adjusted EBITDA margin compressed to 35.9% due to higher costs and lower construction activity.

• Operating free cash flow declined 6.2% year-over-year to €418 million.

• Free cash flow was impacted by higher interest and tax payments.

• Net debt stood at €24.4 billion at end of Q2 2024; net leverage 6.7x LTM EBITDA.

Outlook and guidance

• 2024 guidance unchanged: total revenue expected to decline year-over-year, mainly from construction slowdown and competitive market.

• High single-digit EBITDA decline anticipated due to FTTH line rental costs and inability to pass inflation to consumers.

• Capex reduction will not fully offset increased interest costs; deleveraging remains a priority.