Iliad S.A (ILIAD) Q4 2024 earnings summary

Executive summary

• Achieved all 2024 targets, surpassing €10 billion in revenue, becoming Europe's fifth-largest telecom operator by subscribers, and expanding to over 60 million subscribers including stakes in Millicom and Tele2, with operations in eight countries and presence in 17.

• Group revenues grew 8.5% year-over-year to €10.02 billion, EBITDAaL up 11.8% to €3.85 billion, and operating free cash flow up 28% to €1.83 billion.

• Net subscriber additions reached 2 million, maintaining leadership in France, Poland, and Italy, with France leading market share gains for the third consecutive year and Poland becoming the number one B2C telecom operator.

• Strengthened business profile with strategic transactions, including becoming reference shareholder in Tele2, consolidating Millicom, and forming a €2.5 billion hyperscale data center partnership with InfraVia.

• Innovation and investment in digital infrastructure, AI, and cloud (Scaleway), with major launches such as France’s first Wi-Fi 7, nationwide 5G SA, and the Moshi open-source AI model.

Financial highlights

• Consolidated revenues rose to €10,024 million, up 8.5% year-over-year; Q4 revenues up 5.1%.

• EBITDAaL increased 11.8% to €3,850 million; margin widened to 38.4%, up 1.1 points year-over-year.

• Operating free cash flow surged 28% to €1,828 million, with positive contributions from all major geographies.

• CapEx stable at €2 billion (20% of revenue), with CapEx intensity down 1.6 percentage points and declining for the fifth consecutive year.

• Net debt stable at €10.3 billion; leverage ratio reduced to 2.7x EBITDAaL at group level.

Outlook and guidance

• 2025 objectives: targeting €2 billion in operating free cash flow (+10% year-over-year), continuing focus on organic growth, financial discipline, and accelerating equity free cash flow generation.

• Maximum leverage targets remain at 3x for the group and 4x for iliad Holding.

• Strategic focus on accelerating fiber rollout, convergent strategy, and AI-driven digital infrastructure.

• Tele2 (associate): 2025 guidance for low single-digit end-user service revenue growth and mid-to-high single-digit underlying EBITDAaL growth.