Iliad S.A (ILIAD) Q2 2024 earnings summary

Executive summary

• Achieved top five European telecom operator status with 50 million subscribers, expanding to 61 million including Tele2 and Eir, and consolidated revenues of €4,902 million in H1 2024, up 10.3% year-over-year.

• Outperformed topline growth with market share gains in all countries, driven by ARPU growth, innovation, and successful product launches such as Freebox Ultra and Kyutai's Moshi.

• Maintained strong financial discipline with group leverage at 2.8x and holding leverage at 3.8x as of June 2024.

• Total subscribers reached 49.8 million, with strong net adds in mobile and fiber across all geographies.

Financial highlights

• H1 2024 group revenue grew 10.3% year-over-year (8.5% organic pro forma), with France up 9.6%, Poland up 12.0% (4.6% organic), and Italy up 11.5%.

• EBITDAaL increased 13.2% to €1,859 million (11% organic pro forma), with margin improved to 37.9% (+90bps) and strong growth across all regions.

• Operating free cash flow surged 61% year-over-year, reflecting solid EBITDAaL growth and normalized capex in France.

• Capex (excluding frequencies) at €888 million, down 14.6% year-over-year; capex intensity at 18%.

• Net debt at €10,252 million and leverage ratio at 2.8x for the group as of June 2024.

Outlook and guidance

• Confident in reaching €10 billion revenue target for 2024, with EFCF generation expected to accelerate in H2 due to phasing of cash interests, taxes, and spectrum payments.

• Maintains focus on industrial investments, commercial expansion, and disciplined capital allocation.

• Continued focus on innovation, AI, cybersecurity, and further integration of ESG criteria into financing.