ALTICE Altice N.V. (Altice Europe) First Quarter 2018 Pro Forma1 Results

Transparency directive : regulatory news

17/05/2018 07:30






Regulatory News:




  • Altice N.V. post-split of Altice USA (to be renamed “Altice Europe”)
    is delivering on its plan to improve operational performance - Q1 2018
    showed the best subscriber trends Altice has ever reported



    • France total fixed B2C customer base grew for the first time since
      Altice took control with +71k unique customer net additions in Q1
      2018 (vs. -35k losses in Q1 2017), including the best fiber
      performance (+96k), supported by massive churn reduction and
      higher gross additions achieved through better operational
      processes;


    • France B2C mobile postpaid customer base increased by +239k net
      additions in Q1 2018 (vs. +68k in Q1 2017), representing the best
      quarterly performance since Altice acquired SFR, achieved through
      better service quality leading to significant churn improvement;


    • Significant improvement in overall customer satisfaction both in
      fiber and mobile demonstrating Altice fiber and content
      investments are key differentiators;


    • Portugal total fixed B2C customer base grew for the second quarter
      in a row with unique customer net additions in Q1 2018 of +4k (vs.
      -28k in Q1 2017), supported by further reduction in churn to the
      lowest level ever. Fiber customer net additions were the highest
      ever in Q1 2018 with +49k new customers (vs. +31k in Q1 2017),
      supported by the rapid expansion of fiber coverage; MEO gained
      market share for the second quarter in a row demonstrating that
      Altice’s fiber and mobile infrastructure strategy is paying-off;


    • Israel total fixed customer base grew for the first time since
      acquisition, adding +1k unique customer net additions in Q1 2018
      (vs. -3k in Q1 2017) despite the intensification of competition in
      the market.




  • Altice Europe revenue flat +0.0% YoY on a constant currency (CC) basis
    in Q1 2018.


  • Altice Europe Adjusted EBITDA2 declined -0.5% YoY on a CC
    basis in Q1 2018, a margin of 35.7% (-0.4% pts YoY vs. 36.1% in Q1
    2017).


  • Significant investment in networks, customer premise equipment and
    innovative new services with total capital expenditures for Altice
    Europe of €761m in Q1 2018 (an increase vs. €687m in Q1 2017):



    • Leading fiber3 operator in France reaching over 11
      million homes passed as of Q1 2018 and 96% 4G mobile population
      coverage;


    • Leading fiber operator in Portugal reaching 4.2 million homes
      passed as of Q1 2018 and 97% 4G mobile population coverage (65%
      4G+ mobile population coverage).




  • New management team for Altice Europe4 once the split of
    Altice USA from Altice N.V. becomes effective:



    • Team led by Patrick Drahi, heavily involved to enhance focus and
      execution;


    • Alain Weill, currently Chairman and CEO of Altice France will
      become CEO of Altice Europe, given the increased prominence of the
      French business;


    • Dennis Okhuijsen will remain CFO of Altice Europe while Malo
      Corbin, previously Altice Group Financial Controller, will assume
      the role of Finance Director, Gerrit Jan Bakker will remain Altice
      Europe Treasurer and Coralie Durbec will be in charge of Altice
      Europe Investor Relations; Natacha Marty will become Altice Europe
      General Counsel;


    • Armando Pereira, currently SFR Telecom CEO, will serve as Altice
      Europe COO;


    • Operating company CEOs remain unchanged.




  • Continuing to execute on non-core asset disposal program to strengthen
    the company’s long-term balance sheet position:



    • French and Portuguese towers – sale of c.10k French sites and c.3k
      Portuguese sites;


    • Dominican Republic – strong position in an attractive market;


    • Closing for towers and Dominican Republic transactions targeted in
      H2 2018.




  • Announced separation of Altice USA Inc. (“Altice USA”) from Altice
    N.V. expected to be effective early June.



Patrick Drahi, founder of Altice N.V., said:
“In the first
quarter of 2018, Altice Europe has started to deliver on its operational
turnaround plan, showing the best subscriber trends Altice has ever
reported. Our strategy is paying off, focusing on making our customer
experience better through improving processes, infrastructure
investments, the best customer premise equipment such as Sofia, and
renewed commercial offers with content as a key differentiator.



I am confident that these first initial significant improvements will
be further enhanced in the coming quarters. We want to bring the best
operational experience and drive the highest level of customer
satisfaction which in turn will allow us to achieve our industrial and
financial objectives. Altice Europe has tremendous opportunities. We
have a unique asset base, fully converged, with premium infrastructure
from networks to CPE and content assets, which is now allowing Altice
Europe to firstly win back share across markets and consequently return
to growth.



In parallel, we have made further progress on the execution of our
non-core asset disposal program, which is well advanced and will
strengthen our long-term balance sheet position.”




Altice N.V. (Euronext: ATC NA and ATCB NA), today announces
financial and operating results for the quarter ended March 31, 2018.




FY 2018 Guidance (Updated for IFRS 15)



Altice N.V. has adopted the IFRS 15 accounting standard, required from
January 2018, based on the full retrospective approach. As previously
disclosed, Altice N.V. restated revenue and restated Adjusted EBITDA
decreased by approximately €120m and €90m, respectively, for the year
ended December 31, 2017 under IFRS 15 (restated revenue and restated
Adjusted EBITDA in France for FY 2017 decreased by €95m and €78m,
respectively). The impact of this accounting change is mainly linked to
mobile handsets subsidies adjustments because of the effect of the
change in amortization pattern and commission capitalization.



For the year ended December 31, 2018, under IFRS 15, Altice Europe is
expected to generate Operating Free Cash Flow5 of between
€2.3bn to €2.5bn, excluding the Altice TV segment. The adoption of IFRS
15 is expected to reduce FY 2018 Adjusted EBITDA by approximately €50 to
€100m compared to the prior accounting standard, mainly in France, and
thus prior guidance (OpFCF for Altice Europe of between €2.4bn to
€2.6bn) has been updated for this amount, although this change is not
expected to impact net cash flow after working capital movements. Altice
France is expected to generate operating free cash flow of between
€1.5bn to €1.6bn (updated from prior guidance of between €1.6bn to
€1.7bn due to this IFRS 15 accounting change).



Altice Europe reiterates plans to expand Adjusted EBITDA and cash flow
margins over the medium- to long-term.



Update on Altice Reorganization Including Altice USA Separation
(‘Spin-Off’ or ‘Split’)



On January 8, 2018, Altice N.V. announced that its Board of Directors
approved plans for the separation of Altice USA from Altice N.V. to be
effected by a spin-off of Altice N.V.’s 67.2% interest in Altice USA
through a distribution in kind to Altice N.V. shareholders. The
separation will enable each business to focus more on the distinct
opportunities for value creation in their respective markets and ensure
greater transparency for investors. The proposed transaction is designed
to create simplified, independent and more focused US and European
operations to the benefit of their respective customers, employees,
investors and other stakeholders.



The separation is to be effected by a spin-off of Altice N.V.’s 67.2%
interest in Altice USA through a distribution in kind to Altice N.V.
shareholders. Altice N.V. expects to complete the proposed spin-off
transaction early June 2018, following Altice N.V. shareholder approval
(Altice N.V. AGM vote on May 18, 2018), AFM approval and publication of
a prospectus in connection with the distribution. US regulatory
approvals have already been obtained.



Simultaneously, on January 8, 2018, the Board of Directors of Altice USA
approved in principle the payment of a $1.5 billion cash dividend to all
shareholders immediately prior to completion of the separation.
Thereafter, on May 15, 2018, the Board of Directors of Altice USA
declared a one-time cash dividend of $2.035 per share of Altice USA
Class A common stock and Class B common stock. The dividend is payable
to stockholders of record at the close of business on May 22, 2018. The
payment date for the one-time cash dividend Altice USA declared will be
two business days prior to the separation date. If the Master Separation
Agreement to be entered into by Altice N.V. and Altice USA in connection
with the separation of Altice USA from Altice N.V. is terminated on or
prior to the payment date of the dividend, the payment of the one-time
cash dividend will not occur.



In the spirit of enhanced accountability and transparency, Altice N.V.
also announced on January 8, 2018, that Altice Europe will reorganize
its structure comprising Altice France (including French Overseas
Territories), Altice International and a newly formed Altice TV
subsidiary. This includes integrating Altice’s support services
businesses into their respective markets and bundling Altice Europe’s
premium content activities into one separately funded operating unit
with its own P&L. This reorganization of Altice Europe is now almost
complete as follows:




  • Following the announcement of the spin-off of Altice USA, Altice
    N.V.’s ownership of Altice Technical Services US was transferred to
    Altice USA for a nominal consideration (Altice USA now owns 100% of
    ATS US). In addition, in April 2018 Altice N.V. exercised its call
    option for the acquisition of 49% in Altice Technical Services Europe
    for a fixed price of €147 million (to be paid in November 2018). As a
    result of the exercise of this call option, Altice N.V.’s ownership in
    Altice Technical Services Europe increased to 100%. The closer
    integration of these suppliers will allow for further quality of
    service improvements. Subsequently, Altice Technical Services France
    and Altice Customer Services have been transferred from Altice
    International to Altice France in May 2018;


  • The transfer of Altice N.V.’s ownership of i24 US and i24 Europe to
    Altice USA was completed in April 2018 for a minimal consideration as
    previously announced (Altice USA now owns 100% of i24 US and 100% of
    i24 Europe);


  • The transfer of the Altice Content division from Altice International
    to Altice Europe and creation of Altice TV were completed in May 2018;


  • The transfer of the French Overseas Territories (FOT) business from
    Altice International to Altice France is expected to complete in Q3
    2018;


  • The disposal of Altice Europe’s International wholesale voice business
    has been signed, with closing expected by year end 2018.



Conference call details



The company will host a conference call and webcast today, Thursday 17th
of May 2018 at 2:00pm CEST (1:00pm BST, 8:00am EDT) to discuss the
results.



Dial-in Access telephone numbers:
Participant Toll Free Dial-In
Number: +1 (866) 393-4306
Participant International Dial-In Number:
+1 (734) 385-2616
Conference ID 4459709
A live webcast of the
presentation will be available on the following website:

https://event.on24.com/wcc/r/1670099/5E8F14FE61C4C863EEEE260BC18A7BF8



The presentation for the conference call will be made available prior to
the call on Altice N.V.’s investor relations website:

http://altice.net/investor-relations



About Altice



Altice is a convergent global leader in telecoms, content, media,
entertainment and advertising. Altice delivers innovative,
customer-centric products and solutions that connect and unlock the
limitless potential of its over 50 million customers over fiber networks
and mobile broadband. The company enables millions of people to live out
their passions by providing original content, high-quality and
compelling TV shows, and international, national and local news
channels. Altice delivers live broadcast premium sports events and
enables millions of customers to enjoy the most well-known media and
entertainment. Altice innovates with technology in its Altice Labs
across the world. Altice links leading brands to audiences through
premium advertising solutions. Altice is also a global provider of
enterprise digital solutions to millions of business customers. Altice
is present in 10 territories from New York to Paris, from Tel Aviv to
Lisbon, from Santo Domingo to Geneva, from Amsterdam to Dallas. Altice
(ATC & ATCB) is listed on Euronext Amsterdam. For more information,
visit www.altice.net



Financial Presentation



Altice N.V. (Altice N.V., the “Company”, or the “Successor entity”) was
created as a result of a cross-border merger with Altice S.A. as per a
board resolution dated August 9, 2015. Altice N.V.’s shares started
trading on Euronext Amsterdam from August 10, 2015 onwards. Altice N.V.
is considered to be the successor entity of Altice S.A. and thus
inherits the continuity of Altice S.A.’s consolidated business. Altice
N.V. and its subsidiaries have operated for several years and have from
time to time made significant equity investments in a number of cable
and telecommunication businesses in various jurisdictions. Therefore, in
order to facilitate an understanding of the Company’s results of
operations, we have presented and discussed the pro-forma consolidated
financial information of the Company – giving effect to each such
significant acquisition and disposal as if such acquisitions and
disposals had occurred by January 1, 2017; as if the planned spin-off of
Altice USA had occurred on January 1, 2017, and excluding press titles
within the AMG France business sold in April and October 2017, for the
quarters ended March 31, 2017 and March 31, 2018 (the “Pro Forma
Financial Information”). Financials include the contribution from Teads
from Q3 2017 onwards. In addition, financials for Altice Europe exclude
Altice N.V.’s international wholesale voice business (exclusivity for
sale announced on March 12, 2018) and green.ch AG and Green Datacenter
AG in Switzerland (following closing announced on February 12, 2018) for
the quarters ended March 31, 2017 and March 31, 2018.



This press release contains measures and ratios (the “Non-GAAP
Measures”), including Adjusted EBITDA, Capital Expenditure (“Capex”) and
Operating Free Cash Flow, that are not required by, or presented in
accordance with, IFRS or any other generally accepted accounting
standards. We present Non-GAAP measures because we believe that they are
of interest to the investors and similar measures are widely used by
certain investors, securities analysts and other interested parties as
supplemental measures of performance and liquidity. The Non-GAAP
measures may not be comparable to similarly titled measures of other
companies or, have limitations as analytical tools and should not be
considered in isolation or as a substitute for analysis of our, or any
of our subsidiaries’, operating results as reported under IFRS or other
generally accepted accounting standards. Non-GAAP measures such as
Adjusted EBITDA are not measurements of our, or any of our
subsidiaries’, performance or liquidity under IFRS or any other
generally accepted accounting principles, including U.S. GAAP. In
particular, you should not consider Adjusted EBITDA as an alternative to
(a) operating profit or profit for the period (as determined in
accordance with IFRS) as a measure of our, or any of our operating
entities’, operating performance, (b) cash flows from operating,
investing and financing activities as a measure of our, or any of our
subsidiaries’, ability to meet its cash needs or (c) any other measures
of performance under IFRS or other generally accepted accounting
standards. In addition, these measures may also be defined and
calculated differently than the corresponding or similar terms under the
terms governing our existing debt.



Adjusted EBITDA is defined as operating income before depreciation and
amortization, non-recurring items (capital gains, non-recurring
litigation, restructuring costs) and equity-based compensation expenses.
This may not be comparable to similarly titled measures used by other
entities. Further, this measure should not be considered as an
alternative for operating income as the effects of depreciation,
amortization and impairment excluded from this measure do ultimately
affect the operating results, which is also presented within the annual
consolidated financial statements in accordance with IAS 1 -
Presentation of Financial Statements.



Capital expenditure (Capex), while measured in accordance with IFRS
principles, is not a term that is defined in IFRS nor is it presented
separately in the financial statements. However, Altice’s management
believe it is an important indicator for the Group as the profile varies
greatly between activities:




  • The fixed business has fixed Capex requirements that are mainly
    discretionary (network, platforms, general), and variable capex
    requirements related to the connection of new customers and the
    purchase of Customer Premise Equipment (TV decoder, modem, etc.).


  • Mobile Capex is mainly driven by investment in new mobile sites,
    upgrade to new mobile technology and licenses to operate; once engaged
    and operational, there are limited further Capex requirements.


  • Other Capex: Mainly related to costs incurred in acquiring content
    rights.



Operating free cash flow (OpFCF) is defined as Adjusted EBITDA less
Capex. This may not be comparable to similarly titled measures used by
other entities. Further, this measure should not be considered as an
alternative for operating cash flow as presented in the consolidated
statement of cash flows in accordance with IAS 1 - Presentation of
Financial Statements. It is simply a calculation of the two above
mentioned non-GAAP measures.



Adjusted EBITDA and similar measures are used by different companies for
differing purposes and are often calculated in ways that reflect the
circumstances of those companies. You should exercise caution in
comparing Adjusted EBITDA as reported by us to Adjusted EBITDA of other
companies. Adjusted EBITDA as presented herein differs from the
definition of “Consolidated Combined Adjusted EBITDA” for purposes of
any of the indebtedness of the Altice Group. The information presented
as Adjusted EBITDA is unaudited. In addition, the presentation of these
measures is not intended to and does not comply with the reporting
requirements of the U.S. Securities and Exchange Commission (the “SEC”)
and will not be subject to review by the SEC; compliance with its
requirements would require us to make changes to the presentation of
this information.



Financial and Statistical Information and Comparisons



Financial and statistical information is for the quarter ended March 31,
2018, unless otherwise stated, and any year over year comparisons are
for the quarter ended March 31, 2017.



Regulated Information



This press release contains inside information within the meaning of
Article 7(1) of the EU Market Abuse Regulation.



Altice Europe Summary Financials Pro Forma Information (New Perimeter)






















































































































































































































































































































































































































































































































































































































































 

 

 

Altice Europe - Quarter ended March 31, 2018

In EUR millions

Altice
France

 

 

Portugal

 

 

Israel

 

 

Dominican
Republic

 

 

Teads

 

 

Others

 

 

Altice
TV

 

 

Corporate
& Other

 

 

Eliminations

 

 


Altice Europe
Consolidated



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed - B2C

665.6

155.3

150.2

24.4

-

-

-

-

-

995.4

Mobile - B2C

1,055.5

134.9

61.8

86.0

-

-

-

-

-

1,338.1

B2B

453.8

145.4

29.6

20.1

-

-

-

-

-

648.7

Wholesale

250.5

39.0

-

1.8

-

-

-

-

-

291.3

Other

173.5

32.3

-

0.4

67.7

0.2

20.3

0.3

-

294.7

Standalone Revenue

2,598.8

506.7

241.5

132.7

67.7

0.2

20.3

0.3

-

3,568.3

Eliminations

-11.2

-11.9

-0.2

-0.3

-0.5

-

-15.8

-0.4

-

-40.2

Consolidated Revenue

2,587.6

494.9

241.4

132.4

67.3

0.2

4.5

-0.1

-

3,528.1

 

Adjusted EBITDA

914.5

219.2

107.1

76.1

5.5

-0.1

-56.0

-6.2

-0.4

1,259.7

Margin (%)

35.2%

43.3%

44.4%

57.3%

8.1%

nm

nm

nm

nm

35.7%

 

Capex

568.8

104.7

58.1

27.6

-

-

3.8

-

-2.3

760.7

 

Adjusted EBITDA - Capex

345.8

114.5

49.1

48.5

5.5

-0.1

-59.8

-6.2

1.9

499.1

 





















































































































































































































































































































































































































































































































































































































































 

 

 

Altice Europe - Quarter ended March 31, 2017

In EUR millions

Altice
France

 

 

Portugal

 

 

Israel

 

 

Dominican
Republic

 

 

Teads

 

 

Others

 

 

Altice
TV

 

 

Corporate
& Other

 

 

Eliminations

 

 


Altice Europe
Consolidated



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed - B2C

696.6

176.2

170.0

28.7

-

-

-

-

-

1,071.5

Mobile - B2C

1,026.8

140.5

55.9

107.6

-

-

-

-

-

1,330.8

B2B

492.5

151.9

35.3

23.9

-

-

-

-

-

703.6

Wholesale

256.7

41.3

-

4.2

-

-

-

-

-

302.2

Other

154.8

32.2

-

-0.7

-

0.8

6.0

-0.4

-

192.7

Standalone Revenue

2,627.3

542.1

261.3

163.7

-

0.8

6.0

-0.3

-

3,600.9

Eliminations

-12.3

-6.9

-0.3

-1.0

-

-

-6.3

-3.0

-

-30.2

Consolidated Revenue

2,610.3

532.9

261.0

162.6

-

0.8

-0.3

-3.3

-

3,570.8

 

Adjusted EBITDA

908.1

256.6

118.7

97.7

-

0.2

-46.1

-45.1

-1.2

1,288.9

Margin (%)

34.6%

47.3%

45.4%

59.7%

nm

nm

nm

nm

nm

36.1%

 

Capex

486.2

107.5

62.3

23.1

-

-

2.9

3.4

1.3

686.6

 

Adjusted EBITDA - Capex

421.9

149.1

56.5

74.6

-

0.2

-49.0

-48.5

-2.5

602.3

 


Notes to Summary Financials




























(1)

 

 


Financials shown in these tables are pro forma defined as results
of the Altice N.V. Group New Perimeter ("Altice Europe") as if the
planned
spin-off of Altice USA had occurred on 1/1/17 and excluding the
press titles within the AMG France business ("France - Media"
segment)
as if the disposals occurred on 1/1/17. Segments are shown on a
pro forma standalone reporting basis, Group figures are
shown
on a pro forma consolidated basis. Financials include the
contribution from Teads from Q3 2017 onwards. In addition,
financials
for Altice Europe exclude Altice N.V.’s
international wholesale voice business (exclusivity for sale
announced on March 12, 2018) and
green.ch AG and Green
Datacenter AG in Switzerland (following closing announced on
February 12, 2018).



(2)

“Other” segment within Altice International includes datacentre
operations in France (Auberimmo).

(3)


Adjusted EBITDA is defined as operating income before depreciation
and amortization, non-recurring items (capital gains, non-
recurring
litigation, restructuring costs) and other adjustment
(equity-based compensation expenses).



(4)

Capex shown on an accrued basis.


Altice Europe KPIs





























































































































































































































































































































































































































































































































































 

 



Q1-18 [3 months]



As and for the quarter ended March 31, 2018

 

 

 

 

 

 

 

 

Dominican

 

 

France

FOT

Portugal

Israel

Republic

Total

 

Homes passed

24,599

178

5,066

2,525

788

28,089

Fiber / cable homes passed

11,239

172

4,168

2,525

750

18,853

 



FIXED B2C



Fiber / cable unique customers

2,327

59

669

1,002

200

4,257

Net adds

96

0

49

1

-4

143

 

Total fixed B2C unique customers

6,014

83

1,559

1,002

322

8,979

Net adds

71

0

4

1

-1

75

 

Fixed ARPU (€/month)

€ 34.7

€ 45.6

€ 32.7

€ 51.6

€ 25.2

-

 



MOBILE B2C



Postpaid subscribers

12,774

198

2,851

1,159

530

17,513

Net adds

239

7

34

7

-5

282

 

Prepaid subscribers

1,666

54

3,504

150

2,688

8,062

 

Total mobile B2C subscribers

14,440

252

6,356

1,309

3,219

25,575

 

Mobile Postpaid ARPU (€/month)

€ 24.1

€ 35.2

€ 9.5

€ 12.4

€ 20.8

-

 
























































































































































































































































































































































































































































































































































Q1-17 [3 months]



 

 

As and for the quarter ended March 31, 2017

 

 

 

 

 

 

 

 

Dominican

 

 

France

FOT

Portugal

Israel

Republic

Total

 

Homes passed

25,744

178

4,997

2,465

758

34,143

Fiber / cable homes passed

9,634

172

3,403

2,465

659

16,332

 



FIXED B2C



Fiber / cable unique customers

2,083

59

509

1,014

208

3,873

Net adds

45

0

31

-3

4

76

 

Total fixed B2C unique customers

6,079

85

1,571

1,014

319

9,068

Net adds

-35

-3

-28

-3

-1

-70

 

Fixed ARPU (€/month)

€ 35.9

€ 46.0

€ 34.6

€ 58.5

€ 30.0

-


 





MOBILE B2C



Postpaid subscribers

12,405

170

2,708

1,104

557

16,943

Net adds

68

8

-15

22

-8

76

 

Prepaid subscribers

2,108

59

3,455

116

2,910

8,647

 

Total mobile B2C subscribers

14,514

228

6,162

1,220

3,466

25,590

 

Mobile Postpaid ARPU (€/month)

€ 25.5

€ 36.7

€ 10.0

€ 12.7

€ 22.7

-

 


Notes to KPIs tables




























(1)

 

 


Total homes passed in France includes unbundled DSL homes outside
of SFR’s fiber / cable (FTTH / FTTB) footprint. Portugal total
homes
passed includes DSL homes enabled for IPTV outside of MEO’s fiber
footprint and fiber homes passed figures include homes
where
MEO has access through wholesale fiber operators (c.0.3m in
Q1-18). In Israel, the total number of homes passed is equal to
the
total number of Israeli homes.



(2)


Fiber / cable unique customers represents the number of individual
end users who have subscribed for one or more of our fiber / cable
based
services (including pay television, broadband or telephony),
without regard to how many services to which the end user
subscribed.
It is calculated on a unique premises basis. Fiber / cable
customers for France excludes white-label wholesale subscribers.
For
Israel, it refers to the total number of unique customer
relationships, including both B2C and B2B.



(3)


ARPU is an average monthly measure that we use to evaluate how
effectively we are realizing revenue from subscribers. ARPU is
calculated
by dividing the revenue for the service provided after certain
deductions for non-customer related revenue (such as hosting
fees
paid by channels) for the respective period by the average number
of customer relationships for that period and further by the
number
of months in the period. The average number of customer
relationships is calculated as the number of customer relationships
on
the first day in the respective period plus the number of customer
relationships on the last day of the respective period, divided by
two.
For Israel and Dominican Republic, ARPU has been calculated by
using the following exchange rates: average rate for Q1-18
€1.00
= ILS 4.2537, €1.00 = 60.1939 DOP.



(4)


Mobile subscribers is equal to the net number of lines or SIM
cards that have been activated on our mobile networks. In Israel,
the split
between iDEN and UMTS (B2C only, including prepaid)
services as follows: 7k iDEN and 1,302k UMTS as of March 31, 2018,
and 9k
iDEN and 1,210k UMTS as of March 31, 2017.




Altice Europe

6

Financial and Operational
Review by Segment – Pro Forma



For quarter ended March 31, 2018 compared to quarter ended March 31,
2017



France (Altice France including SFR)



Q1 2018 operational results in France were the best since Altice took
control: continued infrastructure and customer premise equipment
investments, new commercial offers and improving customer service all
contributed to lower churn and higher customer gross additions.



Process improvements implemented since management changed at the end of
2017 are already demonstrating results at SFR, and this is just the
beginning. SFR is now observing consistent improvements in customer
service metrics which is being reflected by improvements in a series of
customer satisfaction indicators. For example, SFR has made significant
progress in customer installation processes, improving the installation
completion rate and driving higher gross additions. The average days to
install a fiber (FTTH) customer was down more than 30% YoY, while the
installation rate was up +20% YoY, resulting from operational processes
changes implemented since Q4 2017. On the fiber network side, incidents
are being detected automatically and fixed more quickly, driving lower
repeat calls to call centers and a significantly reduced number of calls
related to technical service. As a result, fibre churn fell by more than
25% reaching a level comparable to some peers but still far from
management’s target level. Further significant improvements will be seen
in the following quarters.



SFR continued to invest in its infrastructure (network, IT and CPE) to
further improve its customer satisfaction. On the fixed side, SFR
remains the number one high-speed broadband infrastructure in France7
now reaching more than 11 million homes passed8 with +288k
additional homes passed in Q1 2018 (including +224k new FTTH homes
passed). On the mobile side, SFR continues to be the leader in terms of
4G mobile antennas in service in France (28,929 antennas) and covers 96%
of the population with 4G at the end of the first quarter. In parallel,
SFR is already preparing the arrival of the next generation of mobile
telephony with 5G technology. After the first tests carried out in 2016
and 2017, SFR with one of its partners, Nokia, were the first in France
to make a 5G New Radio connection using the 3.5 GHz frequency band.



In March 2018, SFR redesigned its offers, stripping out premium content,
and making the telecom offers more simple and comparable to competitors.
These offers are now built around two separate blocks: one centred
around telecoms and one centred around premium content (Sport,
Cinema/Series, etc.); these are offered as pay options, at a rate still
preferential for SFR customers, for fixed and mobile offers. Altice
France also announced the launch of a single brand this summer for all
of its sports content: RMC Sport, set to replace SFR Sport with the
Champion’s League launch this summer. This strategy is starting to pay
off as there is a significant uplift on gross adds ARPU for customers
taking content options and this trend is anticipated to strengthen as
further key content is added with the Champion’s League from Q3 2018.



This solid operational turnaround and customer growth are expected to
lead in the coming quarters to an inflection in revenue growth.



The following subscriber KPIs are based on the old reporting
perimeter for SFR Group for comparability to previously reported figures
in 2017 and 2016 (i.e. excluding FOT):




  • Total Altice France revenue declined -1.1% YoY in Q1 2018 to €2,599m.


  • The total fixed B2C customer base in France grew for the first time
    since Altice took control with +71k unique customer net additions in
    Q1 2018 (vs. -35k losses in Q1 2017), including the best fiber
    performance and lowest level of DSL losses:



    • Fiber net additions reached +96k in Q1 2018 (vs. +45k in Q1 2017)
      and DSL net losses were -25k in Q1 2018 (vs. -79k in Q1 2017);


    • Fixed B2C ARPU declined -3.0% YoY ex-VAT benefit9, or
      -3.6% YoY on reported basis to €34.7 in Q1 2018 (vs. €35.9 in Q1
      2017), partly impacted by more intense market competition
      following SFR’s successful churn reduction and more proactive
      retention activity. SFR’s new bundle offers with premium options
      were made available towards the end of the first quarter which is
      expected to partly offset the negative impact on ARPU from the VAT
      law change implemented from March 2018;


    • Fixed B2C revenues declined -3.9% YoY ex-VAT benefit, or -4.5% YoY
      on a reported basis in Q1 2018, impacted by prior customer losses
      and the decline in ARPU.






  • Mobile B2C postpaid customer growth in France in Q1 2018 was the
    highest since Altice bought SFR:



    • The mobile B2C postpaid customer base increased by +239k net
      additions in Q1 2018 (vs. +68k in Q1 2017);


    • B2C mobile postpaid ARPU declined -4.8% YoY ex-VAT benefit, or
      -5.3% YoY on a reported basis to €24.1 (vs. €25.5 in Q1 2017) due
      to increased customer retention and share of RED-branded customers
      within the mix of gross additions;


    • Mobile B2C service revenue grew +1.6% YoY ex-VAT benefit, or +0.9%
      YoY on a reported basis, supported by better mobile postpaid
      customer trends; total mobile B2C revenue grew +3.4% YoY ex-VAT
      benefit or +2.8% YoY on a reported basis.






  • B2B revenue declined -7.9% YoY in Q1 2018, impacted by backbook price
    reductions implemented in Q2 2017. Following a change to the B2B
    management team in H2 2017 and adoption of a new pricing and customer
    retention strategy, the underlying order book has improved, leading to
    an improvement in trend sequentially already.


  • Wholesale revenues were down -2.4% YoY in Q1 2018, excluding the
    international wholesale voice business (exclusivity for sale announced
    on March 12, 2018).


  • Other10 revenue grew +12.1% YoY in Q1 2018, supported by
    continued strong growth at NextRadioTV.



Total Altice France’s Adjusted EBITDA grew by +0.7% in Q1 2018 YoY to
€915m with margins expanding by +0.6% pts YoY to 35.2% reflecting cost
savings being realised from the voluntary plan.



Total Altice France capex amounted to €569m in Q1 2018, an increase of
€83m YoY reflecting continued network investments and significantly
improved commercial trends.



Separately, on February 9, 2018, the “SFR Group”, which includes the
telecoms operations of SFR and group media businesses (press titles,
stake in NextRadioTV), was renamed “Altice France”.



Portugal (MEO)



MEO continues to see the benefits of its accelerated investment to
expand its fiber coverage with the second consecutive quarter of growth
for its fixed customer base, and a strong performance in the pay-TV
segment. MEO has now reached 4.2 million fiber homes passed, on track
for its target for nationwide coverage of 5.3 million homes. As MEO
continues to invest in its mobile network – now reaching over 97% 4G
mobile population coverage and 65% 4G+ mobile population coverage – the
mobile postpaid customer base continues to grow.



This quarter, MEO pursued further initiatives as part of its digital
transformation and to promote sustainability:




  • “My MEO” provides a new self-care user experience which is more mobile
    centric with a new design and user-friendly interface. This new
    multi-platform tool will allow customers to manage their accounts and
    find relevant information about their products & services, anytime and
    anywhere, in a simple and easy way;


  • “Video Chat” is an integrated solution that recreates a real store
    experience which is 100% online, allowing customer service teams to
    engage in real time with customers in their homes;


  • All the commercial post-paid offers began to include free electronic
    invoices.



These new products and services demonstrate once again MEO’s leadership
when it comes to innovation and improving customer experience.



MEO’s successful infrastructure investment, new commercial strategy and
improving quality of its customer service all contributed to better
operational results with historically low churn and higher customer
gross additions. This solid customer growth is expected to lead in the
coming quarters to consistent market share growth and an inflection in
revenue growth.




  • Total Altice Portugal revenue declined -4.5% YoY in Q1 2018 ex one-off11
    or -6.5% YoY on a reported basis to €507m, mainly impacted by prior
    fixed B2C customer losses and repricing in the B2B segment:



    • MEO added a record number of fiber customers this quarter again,
      supported by the expansion of its fiber footprint: net additions
      in Q1 2018 of +49k (vs. +31k in Q1 2017);


    • The acceleration in fiber growth supported total fixed net
      additions, positive for the second quarter in a row in Q1 2018
      (+4k). DSL/DTH trends also improved YoY with customer losses of
      -45k in Q1 2018 (vs. -59k in Q1 2017). This better commercial
      performance was driven by higher gross additions and further churn
      improvements (reaching again this quarter record low levels,
      especially for the fiber customer base);


    • B2C fixed revenues declined in Q4 -7.7% YoY ex one-off11
      or -11.9% YoY on a reported basis in Q1 2018, driven by prior
      fixed customer losses of -0.8% YoY and a decline in total fixed
      B2C ARPU of -5.5% YoY. ARPU pressure reflects the regulatory
      decision in Q3 2017 to open up MEO’s customer base for
      disconnections which required more retention activity, as well as
      the absence of an across the board price increase in 2018, leading
      to a more challenging YoY comparison;


    • The postpaid B2C mobile subscriber trends improved again YoY in Q1
      2018 with net additions of +34k (vs. -15k losses in Q1 2017),
      supported by MEO’s network investment and successful convergent
      strategy. Prepaid B2C mobile net losses were -154k in Q1 2018 (vs.
      +8k in Q1 2017), including the impact of greater prepaid to
      postpaid migrations;


    • Mobile postpaid ARPU declined -5.1% YoY in Q1 2018 due to
      increased promotional offers to migrate prepaid to postpaid
      customers and retention activity following the disruption from the
      Q3 2017 regulatory decision on customer disconnections,
      contributing to the decline in B2C mobile revenues of -4.0% YoY;


    • B2B revenues declined -2.0% YoY11 or -4.3% YoY on a
      reported basis, due to the continued repricing of our legacy
      services facing intense competition;


    • Wholesale revenue declined -5.7% YoY in Q1, mainly due to other
      Portuguese operators continuing to replace copper access lines and
      circuits leased from MEO by their own infrastructure;


    • Other revenue was in line with the prior year (+0.3% YoY).




  • Total Altice Portugal Adjusted EBITDA declined by -10.6% ex one-off11,
    or -14.6% YoY on a reported basis to €219m with margins reducing by
    -1.9% pts ex one-off11 YoY to 43.3% (or -4.1% pts on a
    reported basis) reflecting the loss of higher margin revenue in both
    the B2C and B2B segments.




  • Total Altice Portugal capex of €105m in Q1 2018, in line with the
    level of last year (€108m in Q1 2017) reflecting continued network
    investments.


  • MEO gained market share for the second quarter in a row which is
    expected to contribute to revenue growth in the coming quarters.



Israel (HOT)




  • Total revenue in Israel declined -0.9% YoY in Q1 2018 on a CC basis,
    or -7.5% on a reported basis to €242m with continued strong mobile
    growth offset by declines in the fixed line business due to
    intensified competition in fixed and further in mobile:



    • The cable customer base grew for the first time since Altice took
      control with +1k net additions in Q1, despite a very high level of
      promotions in the market. Fixed line ARPU declined -5.6% YoY in Q1
      in local currency, mainly driven by greater competition in the TV
      market. Overall fixed revenues declined -4.1% YoY in Q1 in local
      currency. HOT remains a premium brand in the market, supported by
      its superior fixed network infrastructure, premium content
      packages, and superior customer service;


    • The B2C mobile postpaid customer base continues to grow with net
      additions of +7k in Q1 and B2C mobile postpaid ARPU growing +4.5%
      YoY in local currency, reflecting HOT’s focus on high-value
      customers. Mobile revenues grew +7.8% YoY in Q1 in local currency.






  • Total Adjusted EBITDA in Israel declined by -3.3% in Q1 2018 YoY in
    local currency, or -9.8% on a reported basis YoY to €107m with margins
    reducing by -1.1% pts YoY to 44.4%.



Dominican Republic (Altice Dominicana)




  • Total revenue in Dominican Republic declined -2.4% YoY in Q1 on a CC
    basis, or -18.9% YoY on a reported basis to €133m with continued fixed
    growth being offset by declines in the prepaid mobile business:



    • The total fixed B2C customer base was stable in Q1 (-1k net
      additions) with a slight decline in the fiber customer base (-4k)
      being partially offset by growth of the DTH customer base. Total
      fixed B2C ARPU increased +1.4% YoY in Q1 in local currency;


    • Total B2C mobile subscriber trends improved YoY, decreasing by
      -34k net losses in Q1 (vs. -44k in Q1 2017) with net mobile
      postpaid losses of -5k (vs. -8k in Q1 2017), mobile postpaid ARPU
      grew +10.5% YoY in Q1 in local currency. Subscribers trends have
      been impacted in recent quarters by continuous prepaid voice
      erosion and increased price competition for mobile data services.
      New offers focused on data and value were made available this
      quarter, which is expected to partially offset that impact going
      forward.




  • Total Adjusted EBITDA in Dominican Republic declined by -6.2% in Q1
    2018 YoY in local currency, or -22.1% on a reported basis YoY to €76m
    with margins reducing by -2.3% pts YoY to 57.3%.



Shares outstanding



As at March 31, 2018, Altice N.V. had 1,492,756,175 common shares A
(including 531,025,305 treasury shares) and 228,272,075 common shares B
outstanding.



On January 30, 2018, Altice announced its intention to cancel
370,000,000 common A shares. The cancellation of such shares will become
effective in accordance with the provisions of Dutch law.




Altice Europe Consolidated Net Debt as of March
31, 2018, breakdown by credit silo




12





  • Altice Europe has a robust, diversified and long-term capital
    structure:



    • Group weighted average debt maturity of 6.1 years;


    • Group weighted average cost of debt of 5.5%;


    • 84% fixed interest rate;


    • No major maturities at SFR until 2022, and none at Altice
      International until 2023;


    • Available liquidity of €3.0bn13.






  • Total consolidated Altice Europe net debt was €32.2bn at the end of Q1
    2018.



























































































































































































































































 

 

 

 

 

 

 

 

 

 

 

Altice Luxembourg (HoldCo)

 

 

Amount


(local currency)

 

 

 

 

 

Actual

 

 


Coupon /


Margin



 

 

Maturity

Senior Notes

EUR 2,075

2,075

7.250%

2022

Senior Notes

USD 2,900

2,353

7.750%

2022

Senior Notes

EUR 750

750

6.250%

2025

Senior Notes

USD 1,480

1,201

7.625%

2025

Swap Adjustment

 

 

-

 

 

 

 

 

-147

 

 

-

 

 

-

Altice Luxembourg Gross Debt

 

 

 

 

 

 

 

 

6,231

 

 

 

 

 

 

Total Cash

 

 

 

 

 

 

 

 

-74

 

 

 

 

 

 

Altice Luxembourg Net Debt

 

 

 

 

 

 

 

 

6,157

 

 

 

 

 

 

Undrawn RCF

200

WACD (%)

7.0%

 












































































































































































































































































































































































Altice France (SFR)

 

 

Amount


(local currency)

 

 

Actual

 

 

PF

 

 


Coupon /


Margin



 

 

Maturity

Senior Secured Notes

 

 

USD 4,000

 

 

3,245

 

 

3,245

 

 

6.000%

 

 

2022

Senior Secured Notes

EUR 1,000

1,000

1,000

5.375%

2022

Senior Secured Notes

USD 1,375

1,115

1,115

6.250%

2024

Senior Secured Notes

EUR 1,250

1,250

1,250

5.625%

2024

Senior Secured Notes

USD 5,190

4,210

4,210

7.375%

2026

Term Loan

EUR 1,136

1,136

1,136

E+3.00%

2025

Term Loan

USD 1,409

1,143

1,143

L+2.75%

2025

Term Loan

USD 2,145

1,740

1,740

L+300%

2026

Term Loan

EUR 998

998

998

E+3.00%

2026

Drawn RCF

-

330

630

E+3.25%

2021

Other debt & leases

-

132

150

-

-

Swap adjustment

 

 

-

 

 

-256

 

 

-253

 

 

-

 

 

-

Altice France Gross Debt

 

 

 

 

 

16,044

 

 

16,362

 

 

 

 

 

 

Total Cash

 

 

 

 

 

-354

 

 

-407

 

 

 

 

 

 

Altice France Net Debt

 

 

 

 

 

15,690

 

 

15,954

 

 

 

 

 

 

Undrawn RCF

795

495

WACD (%)

4.7%

 





























































































































































































































































































































































































































































































































































































 

 

 

 

 

 

 

 

 

 

Altice International

 

 

Amount


(local currency)

 

 

Actual

 

 

PF

 

 


Coupon /


Margin



 

 

Maturity

HOT Unsecured Notes

ILS 814

189

189

3.90 - 6.90%

2018

Senior Secured Notes

EUR 500

500

500

5.250%

2023

Senior Secured Notes

USD 2,060

1,671

1,671

6.625%

2023

Senior Secured Notes

USD 2,750

2,231

2,231

7.500%

2026

Term Loan

USD 903

733

733

L+2.750%

2025

Term Loan

USD 898

728

728

L+3.75%

2026

Term Loan

EUR 299

299

299

E+2.75%

2026

Drawn RCF

-

280

-

E+3.50%

2021

Other debt & leases

-

84

66

-

-

Swap Adjustment

 

 

-

 

 

372

 

 

372

 

 

-

 

 

-

Altice International Senior Debt

 

 

 

 

 

7,088

 

 

6,789

 

 

 

 

 

 

Senior Notes

EUR 250

250

250

9.000%

2023

Senior Notes

USD 400

324

324

8.125%

2024

Senior Notes

USD 385

312

312

7.625%

2025

Senior Unsecured Notes

EUR 675

675

675

4.750%

2028

Swap Adjustment

 

 

-

 

 

28

 

 

28

 

 

-

 

 

-

Altice International Total Debt

 

 

 

 

 

8,677

 

 

8,379

 

 

 

 

 

 

Total Cash

 

 

 

 

 

-377

 

 

-340

 

 

 

 

 

 

Altice International Net Total Debt

 

 

 

 

 

8,300

 

 

8,040

 

 

 

 

 

 

Undrawn RCF

631

911

WACD (%)

5.6%


 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Altice Luxembourg Consolidated Debt

 

 

 

 

 

30,952

 

 

30,972

 

 

 

 

 

 

Total Cash

 

 

 

 

 

-805

 

 

-821

 

 

 

 

 

 

Total Altice Luxembourg Consolidated Net Debt

 

 

 

 

 

30,147

 

 

30,151

 

 

 

 

 

 

WACD (%)

5.4%

 



























































































































































ACF

 

 

Amount


(local currency)

 

 

Actual

 

 

PF

 

 


Coupon /


Margin



 

 

Maturity

Corporate Facility

 

 

EUR 240

 

 

240

 

 

240

 

 

E+6.843%

 

 

2020

Corporate Facility

 

 

EUR 2,113

 

 

2,113

 

 

1,488

 

 

E+6.843%

 

 

2021

ANV/ACF Gross Debt

 

 

 

 

 

2,353

 

 

1,728

 

 

 

 

 

 

Total Cash

 

 

 

 

 

-132

 

 

-132

 

 

 

 

 

 

ANV/ACF Net Debt

 

 

 

 

 

2,221

 

 

1,596

 

 

 

 

 

 

WACD (%)

6.8%

 



Altice Europe Pro Forma Net Leverage
Reconciliation as of March 31, 2018




















































































































































































































































































































































































































































































































 

 

 

 

 

 

 

 

 

 

€m

Altice Europe Reconciliation to Swap Adjusted Debt

Actual

PF

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debenture and Loans from Financial Institutions

 

 

 

 

 

 

 

 

 

 

 

32,781

 

 

32,781

Value of Debenture and Loans from Financial Institutions in Foreign
Currency converted at closing FX Rate

-26,585

-26,585

Value of Debenture and Loans from Financial Institutions in Foreign
Currency converted at hedged Rate

26,582

26,582

Transaction Costs

339

339

Fair Value Adjustments

 

 

 

 

 

 

 

 

 

 

 

-4

 

 

-4

Total Swap Adjusted Value of Debenture and Loans from Financial
Institutions


 

 

 

 

 

33,113

 

 

33,113

Overdraft

17

17

Other

174

174

PF New Organization

 

 

 

 

 

 

 

 

 

 

 

-

 

 

-605

Gross Debt Consolidated

 

 

 

 

 

 

 

 

 

 

 

33,305

 

 

32,700

 

Altice Europe (Actual)

Altice


Luxembourg


Consolidated


Altice


Corporate


Financing



Altice


TV

ANV


Altice N.V.


Post-split


TopCo



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Debt Consolidated

 

 

30,952

 

 

2,353

 

 

-

 

 

-

 

 

33,305

Cash

 

 

-805

 

 

-132

 

 

-

 

 

-156

 

 

-1,093

Net Debt Consolidated

 

 

30,147

 

 

2,221

 

 

-

 

 

-156

 

 

32,212

 


 



 



 



Altice Europe (Pro Forma)



Altice


Luxembourg


Consolidated


Altice


Corporate


Financing



Altice


TV

ANV


Altice N.V.


Post-split


TopCo



 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Debt Consolidated

 

 

30,972

 

 

1,728

 

 

-

 

 

-

 

 

32,700

Cash

 

 

-821

 

 

-132

 

 

-279

 

 

-156

 

 

-1,388

Net Debt Consolidated

 

 

30,151

 

 

1,596

 

 

-279

 

 

-156

 

 

31,312

 


























































































































































































































































































































































































































 

 

 

 

 

 

 

 

 

 

€m


Altice


Corporate


Financing



ANV


Altice N.V.


Post-split


TopCo



Altice Europe (Pro Forma)

Altice
France

 

 


Altice
International



 

 


Altice
Luxembourg



 

 


Eliminations



 

 


Altice


Luxembourg


Consolidated




Altice


TV



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Debt Consolidated

 

 

16,362

 

 

8,379

 

 

6,231

 

 

-

 

 

30,972

 

 

1,728

 

 

-

 

 

-

 

 

32,700

Cash

 

 

-407

 

 

-340

 

 

-74

 

 

-

 

 

-821

 

 

-132

 

 

-279

 

 

-156

 

 

-1,388

Net Debt Consolidated

 

 

15,954

 

 

8,040

 

 

6,157

 

 

-

 

 

30,151

 

 

1,596

 

 

-279

 

 

-156

 

 

31,312

LTM Standalone

4,167

1,794

-

-

5,961

-

-232

-64

5,665

Eliminations

-

-0

-

-11

-0

-

-

11

-

Corporate Costs

 

 

-

 

 

-26

 

 

-5

 

 

-

 

 

-42

 

 

-

 

 

-

 

 

31

 

 

-

LTM EBITDA Consolidated

 

 

4,167

 

 

1,768

 

 

-5

 

 

-11

 

 

5,919

 

 

-

 

 

-232

 

 

-22

 

 

5,665

Gross Leverage

3.9x

4.7x

0.0x

0.0x

5.2x

0.0x

0.0x

0.0x

5.8x

Net Leverage

3.8x

4.5x

0.0x

0.0x

5.1x

0.0x

0.0x

0.0x

5.5x

 



Altice N.V. Non-GAAP Reconciliation to GAAP
measures as of March 31, 2018 year to date




14



































































































































 

 

For the three months ended

In million Euros

 

 

March 31, 2018

Revenues

3,599.1

Purchasing and subcontracting costs

-1,116.6

Other operating expenses

-862.9

Staff costs and employee benefits

-367.3

Total

1,252.2

Stock option expense

 

 

7.9

Adjusted EBITDA

 

 

1,260.1

Depreciation, amortisation and impairment

-1,005.2

Stock option expense

-7.9

Other expenses and income

 

 

-106.1

Operating profit

 

 

141.0

 

 

 

 

Capital expenditure (accrued)

 

 

760.7

Capital expenditure - working capital items

60.9

Payments to acquire tangible and intangible assets

821.6

 

 

 

 

Operating free cash flow (OpFCF)

 

 

499.4

 



FORWARD-LOOKING STATEMENTS



Certain statements in this press release constitute forward-looking
statements. These forward-looking statements include, but are not
limited to, all statements other than statements of historical facts
contained in this press release, including, without limitation, those
regarding our intentions, beliefs or current expectations concerning,
among other things: our future financial conditions and performance,
results of operations and liquidity; our strategy, plans, objectives,
prospects, growth, goals and targets; and future developments in the
markets in which we participate or are seeking to participate. These
forward-looking statements can be identified by the use of
forward-looking terminology, including the terms “believe”, “could”,
“estimate”, “expect”, “forecast”, “intend”, “may”, “plan”, “project” or
“will” or, in each case, their negative, or other variations or
comparable terminology. Where, in any forward-looking statement, we
express an expectation or belief as to future results or events, such
expectation or belief is expressed in good faith and believed to have a
reasonable basis, but there can be no assurance that the expectation or
belief will be achieved or accomplished. To the extent that statements
in this press release are not recitations of historical fact, such
statements constitute forward-looking statements, which, by definition,
involve risks and uncertainties that could cause actual results to
differ materially from those expressed or implied by such statements
including risks referred to in our annual and quarterly reports.



_______________

1 All financials are shown under IFRS 15
accounting standard. Financials shown above are pro forma defined as
results of the Altice N.V. Group New Perimeter ("Altice Europe") as if
the planned spin-off of Altice USA had occurred on 1/1/17 and excluding
the press titles within the AMG France business ("France - Media"
segment) as if the disposals occurred on 1/1/17. Altice USA considered
as third-party and not included in group eliminations from 1/1/18.
Segments are shown on a pro forma standalone reporting basis, Group
figures are shown on a pro forma consolidated basis. Financials include
the contribution from Teads from Q3 2017 onwards. In addition,
financials for Altice Europe exclude Altice N.V.’s international
wholesale voice business (exclusivity for sale announced on March 12,
2018) and green.ch AG and Green Datacenter AG in Switzerland (following
closing announced on February 12, 2018) from 1/1/17.
2 See
reconciliation of non-GAAP performance measures to operating profit for
the three months period ended on page 18 of this release.
3 FTTB
and FTTH homes passed.
4 Requires approval of the general meeting.
5
Operating Free Cash Flow (“OpFCF”) defined as Adjusted EBITDA less capex.
6
Financials shown in this section are based on the new reporting
perimeter for Altice Europe unless stated otherwise.
7 Delivering
broadband speeds over 100Mbps.
8 FTTB and FTTH homes passed.
9
Excluding benefit of lower VAT for some press/TV bundles implemented in
2016; loss of benefit from March 2018 following VAT law change.
10
Other revenue includes SFR Media, FOT, support services and eliminations
with the SFR Telecom business.
11 Excluding impact from one-off
sale of receivables in Q1 2017 for €11.5m (€7.9m in B2C and €3.6m in
B2B).
12 Pro-forma for new organization. Includes €625m of
prepayment of the Altice Corporate Financing facility following €900m
dividend from Altice USA, and €300m RCF drawn at SFR.
13 €1.6bn of
revolvers available and €1.4bn of cash (pro-forma for new organization
and €900m of dividend from Altice USA of which €275m will stay on
balance sheet to fund the Altice TV silo and €625m is used to repay the
Altice Corporate Financing facility). Cash includes €131m of restricted
cash for debt financing obligations at Altice Corporate Financing.
14
The financial numbers disclosed in this reconciliation below are subject
to review procedures of Altice N.V.’s external auditors. The difference
in consolidated revenue and Adjusted EBITDA as reported for Altice N.V.
in the Non-GAAP Reconciliation to GAAP measures as of March 31, 2018
year to date and the Pro Forma Financial Information for Altice Europe
as disclosed in this Earnings Release is mainly due to pro forma
adjustments to exclude the financial information related to the
International Wholesale Voice business and I24.









Altice Europe


Head of Investor Relations

Coralie
Durbec: +41 79 913 0429

coralie.durbec@altice.net

or

Head
of Communications


Arthur Dreyfuss: +41 79 946 4931


arthur.dreyfuss@altice.net


or

Altice
USA



Head of Investor Relations

Nick Brown: +41 79
720 1503

nick.brown@altice.net

or

Head
of Communications


Lisa Anselmo: +1 929 418 4362

lisa.anselmo@alticeusa.com