Fiber Joint Ventures in Europe

Country	JV	Telcos	Energy co	Investors
Netherlands
	Glaspoort	KPN 50%		APG 50%
	Open Dutch Fiber			KKR, DTCP
	Delta Fiber			EQT 50%, Stonepeak 50%
	Eurofiber			Antin 80%, PGGM 20%
Belgium
	Fiberklaar (Flanders)	Proximus 49.9%, Delta Fiber 50.1%
	Unifiber (Wallonia)	Proximus 49.9%, Eurofiber 50.1%
	TBA (German area)	Proximus <50%	Ethias >50%
	TBA (rural)	Proximus	Synaton (Engie)	FPIM, AG
	TBA (Flanders)	Telenet 67%	Fluvius 33%
France
	Orange Concessions	Orange 50%		Consortium (3 banks) 50%
	IFT	Free (Iliad) 49%		InfraVia 51%
	Xp Fibre	Altice 50.01%		Allianz/AXA/OMERS 49.99%
	SDFAST	Bouygues		Vauban Infra
Germany
	Glasfaser Nordwest	Telekom DE	EWE
	GlasfaserPlus	Telekom DE 50%		IFM Investors 50%
	Unsere Grüne Glasfaser	Telefonica DE 50%		Allianz 50%
	Deutsche GigaNetz			InfraRed Capital, DWS, Axos Capital
	Westenergie Breitband		E.ON	Igneo
	Vattenfall Eurofiber	Eurofiber	Vattenfall
	Liberty Networks Germany	Liberty Global 50%		InfraVia 50%
	TBA	Geodesia (Altice), Deutsche Glasfaser
Italy
	FiberCop	TIM 58%, Fastweb 4.5%		KKR 37.5%
	Open Fiber		CDP 60%	Macquarie 40%
Poland
	FiberCo (Światłowód Inwestycje)	Orange PL 50%		APG 50%
	FiberForce	Play (Iliad) 50%		InfraVia 50%
	Nexera			Infracapital (= M&G) 86%, Nokia 14%
Switzerland
	Swiss Fibre Net (SFN)	Didico, DANET	ewb, ewl, St Galler Stadtwerke
UK
	CityFibre			Antin, WSIP (Goldman Sachs, Broad Street), Mubadala, Interogo
	Community Fibre			Warburg Pincus, DTCP
	Axione Fibre	Bouygues		Vauban Infrastructure
Ireland
	SIRO	Vodafone 50%	ESB 50%
	Fibre Networks Ireland	eir 50.01%		InfraVia 49.99%
	National Broadband Ireland			Asterion 80%, Granahan McCourt 6%, Tetrad 13%, mgt 1%
Spain
	Bluevia Fibra	Telefonica ES 30%, Telefonica Infra 25%		Crédit Agricole & Vauban Infrastructure 45%
	Onivia			Macquarie, Aberdeen Standard, Daiwa, Arjun Infrastructure
	Lyntia			AXA & Swiss Life 67%, Morrison & Co 33%
Portugal
	Fastfiber	Altice 50.01%		Morgan Stanley 49.99%
Czechia
	CETIN			PPF 70%, GIC 30%

Viaplay 22Q2

Viaplay 22Q2:

• 1.515m int subs (o/w >50% in NL)
• Targets 2022:
• Raises YE 2022 subs target from 7.0 to 7.3m
• To premiere >70 originals in 2022
• Organic revenue growth >=28% (Nordics 20%)
• Viaplay subs YE 2022 7.3m (Nordics 4.8m, Int 2.5m)
• EBIT Nordics stable to slightly lower, EBIT Int loss SEK 1.35b
• Delta WC negative SEK 3.2b

• Targets 2020-25:
• Organic revenue growth CAGR 18-20% (Nordics 13-15%, Viaplay Nordics 23-25%)
• Total Viaplay subs YE 2025 12m (6m Nordics, 6m int)
• EBIT margin Nordics 15% in 2025, LT 20%, EBIT Int positive over 2025, 15% margin over 2026, LT 25%
• Leverage policy: <2.5x (net debt / EBITDA AL)
• Acquires Premier Sports
• GBP 30m
• UK, 23 employees, 2 pay-TV channels, 1 FTA channel, 1 streamer Premier Player\
• Total 222k paying subs, charges 15 GBP/mo
• Distr deals with Sky, Virgin, Amazon, Netgem
• 2021 rev GBP 26.4m (+33%), target profitable in 2022
• To close Sep 2022 [see 220713]

Netflix 22Q2 results

Netflix 22Q2 results:

• $150m restructuring charge (charge $70m for severance costs of lay-offs, $80m impairment for real estate leases)
• Acquires Animal Logic (animation studio, 800 employees), all-cash, to close 2022
• Plans AVOD tier early 2023 (may lack some content that was not renegotiated for ads)
• Outlook 2022: oper margin 19-20% (excl $150 restructuring in 22Q2; to disclose YTD oper margin at beginning of each year), FCF +$1b (substantial growth in 2023), cash content spend-to-content amortisation 1.2-1.3x (peaked at 1.6 in 2019), content budget to remain 17b $/yr (through 2023); to maintain minimum cash of 2 months of rev, excess cash to be returned as SBB
• "Reaccelerating our revenue growth is a big challenge"
• Expects end of linear TV in 5-10 yr

Telefonica establishes rural FTTP JV Bluevia Fibra

Telefonica establishes Bluevia Fibra JV:

• Rural FTTP, wholesale
• With Crédit Agricole Assurances & Vauban Infrastructure Partners, selling 45% stake; Telefónica España retains 30%, Telefónica Infra 25%
• Current footprint 3.5m premises (13% of Telefonica ES network), target >5m by 2024
• Valuation: 45% 1.021b cash, EV EUR 2.500b = 27.1x 2022E EBITDA
• To close end 2022.

Orange Spain and MasMovil sign binding agreement to merge

Orange ES and MasMovil sign binding agreement to merge in 50/50 JV

• Combined EV lowered to EUR 18.7b
• o/w Orange ES excl. TOTEM 7.8b (7.2x 2022E EBITDA AL; 37.1x 2022E EBITDA AL – Capex) + cash EUR 4.20b
• o/w MasMovil incl. Euskaltel 10.9b (8.7x 2022E EBITDA AL, 14.9x 2022E EBITDA AL – Capex) + cash EUR 1.65
• asymmetric payment of EUR 5.85b to Orange & MasMovil embeds equalisation payment to reflect different debt levels.
• Equal governance and right to trigger IPO 24-42 months after closing (Orange right to take control at IPO price).
• Target efficiencies, accelerate investments in FTTH & 5G; synergies 450m EUR/annum from year 4:
• 230m from network (135 from mobile, 85 from FTTH, 10 from transmission)
• 160m from S&M and customer care
• 60m from other (IT, G&A)
• Target leverage 3.5x (net debt / EBITDA).
• To close 23H2.

Telenet and Fluvius establish FTTH/HFC infrastructure JV NetCo

Telenet establishes 66.8/33.2 JV NetCo with Fluvius System Operator:

• To migrate from HFC to 'network of the future' (incl. FTTH, target 78% coverage in Flanders by 2038; plans Docsis upgrade in remaining areas, Docsis 4.0 from 2024), target 10 Gb/s.
• Total capex EUR 2.0b (most 2023-2029; 650 EUR/home (excl capex for connection) for FTTH for >50% of homes), fully financed, leverage target 5.0x (i.e. net debt EUR 2.4b).
• Both to contribute current HFC & fiber assets, Telenet to contribute 170 employees (to hire 50 more), Fluvius to contribute lease to Telenet until 2046 (covers 1/3 of Flanders), to end on closing of JV early 2023.
• Open for additional investors.
• To provide open access wholesale on non-discriminatory basis, to launch with near 60% occupancy.

Telenet:

• To be fully consolidated.
• Net debt to be reduced by EUR 500m (0.4x) on ending Fluvius lease, to maintain leverage at 4.0x.
• Lowers dividend pay-out floor to 1.00 EUR/yr for 2023-29 (payable in May after AGM) from currently 2.75 EUR/yr.
• Capex to drop strongly after 2029.
• Plans CMD end Sep 2022.
• Current data usage on fixed average 239 GB/mo.