Altice France Holding S.A (ALTICE) Q4 2023 earnings summary

Executive summary

• Q4 2023 revenue was flat YoY at €2.927bn; Adjusted EBITDA declined 1.0% and OpFCF declined 2.1%.

• FY 2023 revenue fell 1.3% to €11.157bn, Adjusted EBITDA fell 4.3% to €3.923bn and OpFCF fell 6.0% to €1.633bn.

• Pro forma net leverage was 6.4x LTM and 6.2x L2QA; year-end liquidity was €0.9bn.

Financial highlights

• Q4 Adjusted EBITDA was €1.046bn, down 1.0% YoY; FY Adjusted EBITDA was €3.923bn, down 4.3%.

• Q4 accrued Capex was €590m, down 0.2% YoY; FY accrued Capex was €2.290bn, down 3.1%.

• Q4 OpFCF was €456m, down 2.1% YoY; FY OpFCF was €1.633bn, down 6.0%.

• Q4 residential service revenue declined 2.1% to €1.592bn; FY residential service revenue declined 1.9% to €6.385bn.

Outlook and guidance

• 2024 revenue is expected to decline YoY, reflecting slower construction activity and continued competition in the French residential market.

• 2024 EBITDA is expected to decline by a mid-to-high single-digit percentage YoY, due to lower construction contribution, FTTH line-rental costs and limited ability to pass inflationary costs to consumers.

• Capex reduction is expected to be insufficient to offset higher interest costs; deleveraging remains a key focus.

• Mid-term Capex is targeted at €1.9bn, versus €2.3bn in 2023 and €2.4bn in 2022.