Iliad S.A (ILIAD) Q2 2025 earnings summary

Executive summary

• Achieved fastest revenue and profitability growth among European telecoms in H1 2025, maintaining leadership in mature, competitive markets with robust subscriber satisfaction and service quality.

• Service revenue grew in all core geographies: France, Italy, and Poland, with Italy leading at 9.4% year-over-year; subscriber base stable at 51 million.

• Strategic investments in digital infrastructure, including €2.5 billion for data centers and AI, and major data center expansion projects.

• Strengthened capital structure and improved credit profile, with positive outlook upgrades from Fitch, Moody's, and S&P.

• Expanded market presence through new fixed offerings in France and Italy, and significant fiber acquisitions in Poland.

Financial highlights

• Group service revenue up 4.3% year-over-year; total group revenue reached €5.1 billion, up 3.8%.

• EBITDAAL rose 10.1% to €2,046 million, with margin improving to 40.2% group-wide.

• Operating free cash flow increased 20.3% to €1,168 million; equity free cash flow at €942 million, boosted by €440 million from asset disposals.

• Net profit from continuing operations surged to €700 million, up €449 million year-over-year, aided by a capital gain from the OpCore sale.

• CapEx (excluding spectrum) stable at €878 million, representing 20% of consolidated revenues.

Outlook and guidance

• Confirms full-year operating free cash flow target of €2 billion.

• Expects recurring equity free cash flow to be lower in H2 due to higher CapEx, absence of associate dividends, and exceptional tax payments.

• Upward revision of rating outlook to Positive by Moody's, S&P, and Fitch.

• Continued focus on digital sovereignty, cloud, and AI infrastructure investments.

• Positive revenue growth expected to continue across all markets.