Masorange (MASORANGE) Q4 2024 earnings summary

Executive summary

• Achieved growth in customers, revenues, and adjusted EBITDA in FY 2024, with synergies exceeding targets and strong progress on transformation initiatives.

• Customer base expanded to over 7.1 million broadband and 25.8 million mobile lines, excluding 6 million M2M lines.

• Signed major agreements: MasOrange FiberCo with Vodafone and Open RAN with Ericsson, advancing network modernization.

• Recognized for best-in-class FTTH and 5G networks, with innovation in enterprise and public sector segments.

• Significant contracts won in both public and private sectors, including Madrid's 5G emergency network and deals with Endesa and Lidl.

Financial highlights

• Organic revenue growth of 1.5% year-over-year, with double-digit growth in equipment sales.

• Adjusted EBITDA up 10.8% year-over-year, reaching 37.9% margin; reported EBITDA up 4.8%.

• Net CapEx reduced by over 7%, with CapEx to sales ratio at 14.7% (adjusted).

• Operating free cash flow improved by 26% to over €1.7 billion; positive free cash flow of €176 million despite restructuring and integration costs.

• Total revenues increased by 1.5% year-over-year, driven by organic growth in billed service (+1.2%) and equipment revenues (+5%).

Outlook and guidance

• Revenue and operating free cash flow expected to continue double-digit growth in 2025.

• More than €300 million in synergy run rate targeted by end of 2025, with over 50% of total expected synergies to be realized within two years.

• Targeting c.€500M total synergies by 2027, with €120M realized in FY24, above target.

• Leverage target to be tightened to 2.75x, subject to NetCo closing.