Tuesday, March 13, 2018

Iliad 17Q4: targets maintained, to bid for 5G spectrum in Italy

Most targets were reiterated.

17Q4

  • div 2017 68c
  • acquired 50% stake in Sepia (housing Telecom Reunion Mayotte) in 2017
Targets fixed
  • LT 25% market share BB
  • grow FTTH subs 300-500k/yr from 2018
  • 9m FTTH HP YE 2018, 20m FTTH HP YE 2022
Targets mobile
  • add 2k sites in 2018
  • 3G coverage 95% & 4G (all incl 1800 band) 90% YE 2018
  • LT 25% market share mobile
Group targets
  • EBITDA margin up in 2018, EBITDA margin FR 40% by 2020
  • capex FR 2018 EUR 1.4-1.5b (excl. spectrum & new Freebox launch)
  • FCF (EBITDA - capex) FR >EUR 1b from 2020 from lower national roaming charges (2G & 3G with Orange, expires YE 2020), improved mobile subs mix, nationwide mobile network by 2020
"Almost ready for launch in Italy"
  • in place: infra (10k km backbone) & interconnections, offers & mkt plan, distr. network, full team, testing for QoS
  • launch summer 2018
  • to bid in 5G auction 2018 (700 & 3600/3800 bands)
  • investments Italy 2017: € 314m (o/w 50 for spectrum from Wind Tre, 220 for 1800 licenses renewal until 2029)
  • target: EBITDA break-even at <10 market="" share="" span="">
FTTH strategy
  • virtuous model, first benefits from 18H1
  • medium dense areas (co-finance model) capex < 1000 EUR/home
Macro
  • French corporate tax rate (33%) to 28% in 2020, 25% in 2022