Iliad S.A (ILIAD) Q1 2025 earnings summary

Executive summary

• Service revenues increased by 6% year-over-year in Q1 2025, with total consolidated revenues up 4.3% to €2,535 million and strong ARPU growth in Poland, robust convergence in France, and momentum in Italy.

• EBITDAAL rose 6% year-over-year to €931 million, with margin expansion and disciplined cost management despite higher IFER tax in France.

• Operating free cash flow increased 9% to €503 million, and equity free cash flow quadrupled to €216 million, excluding OpCore sale proceeds.

• Subscriber base reached 50.8 million, with net additions led by Italy and continued expansion in fiber and mobile segments.

• Profit for the period surged to €522 million, mainly due to a €466 million gain from the sale of 50% of OpCore.

Financial highlights

• Q1 2025 consolidated revenue grew 4.3% year-over-year to €2,535 million, with service revenue up 5.7%.

• EBITDAAL increased 6.0% year-over-year to €931 million, with margin up 60 basis points to 36.7%.

• Operating free cash flow rose 9% to €503 million; equity free cash flow quadrupled to €216 million (excluding disposals).

• Capex (excluding spectrum) up 2.5% to €428 million, focused on 4G/5G, FTTH, and cloud infrastructure.

• Net debt reduced to €9.7 billion, with leverage ratio improved to 2.5x from 2.7x at year-end 2024.

Outlook and guidance

• Target of €2.0 billion in operating free cash flow for full-year 2025 reaffirmed.

• Moody’s upgraded outlook from Stable to Positive, but investment grade not currently targeted.

• Liquidity covers all maturities until at least 2028, supporting a strong credit profile.

• Continued focus on value over volume, especially in France, and further convergence between broadband and mobile.

• Ongoing investments in infrastructure, especially in AI and data centers via OpCore and Scaleway.