Thursday, July 28, 2022

Fiber Joint Ventures in Europe

CountryJVTelcosEnergy coInvestors
GlaspoortKPN 50%APG 50%
Open Dutch FiberKKR, DTCP
Delta FiberEQT 50%, Stonepeak 50%
EurofiberAntin 80%, PGGM 20%
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)ProximusSynaton (Engie)FPIM, AG
TBA (Flanders)Telenet 67%Fluvius 33%
Orange ConcessionsOrange 50%Consortium (3 banks) 50%
IFTFree (Iliad) 49%InfraVia 51%
Xp FibreAltice 50.01%Allianz/AXA/OMERS 49.99%
SDFASTBouyguesVauban Infra
Glasfaser NordwestTelekom DEEWE
GlasfaserPlusTelekom DE 50%IFM Investors 50%
Unsere Grüne GlasfaserTelefonica DE 50%Allianz 50%
Deutsche GigaNetzInfraRed Capital, DWS, Axos Capital
Westenergie BreitbandE.ONIgneo
Vattenfall EurofiberEurofiberVattenfall
Liberty Networks GermanyLiberty Global 50%InfraVia 50%
TBAGeodesia (Altice), Deutsche Glasfaser
FiberCopTIM 58%, Fastweb 4.5%KKR 37.5%
Open FiberCDP 60%Macquarie 40%
FiberCo (Światłowód Inwestycje)Orange PL 50%APG 50%
FiberForcePlay (Iliad) 50%InfraVia 50%
NexeraInfracapital (= M&G) 86%, Nokia 14%
Swiss Fibre Net (SFN)Didico, DANETewb, ewl, St Galler Stadtwerke
CityFibreAntin, WSIP (Goldman Sachs, Broad Street), Mubadala, Interogo
Community FibreWarburg Pincus, DTCP
Axione FibreBouyguesVauban Infrastructure
SIROVodafone 50%ESB 50%
Fibre Networks Irelandeir 50.01%InfraVia 49.99%
National Broadband IrelandAsterion 80%, Granahan McCourt 6%, Tetrad 13%, mgt 1%
Bluevia FibraTelefonica ES 30%, Telefonica Infra 25%Crédit Agricole & Vauban Infrastructure 45%
OniviaMacquarie, Aberdeen Standard, Daiwa, Arjun Infrastructure
LyntiaAXA & Swiss Life 67%, Morrison & Co 33%
FastfiberAltice 50.01%Morgan Stanley 49.99%

Monday, July 25, 2022

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.

Tuesday, July 19, 2022

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.
  • 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.