Paris, May 7, 2019
Over the past twenty years, Iliad has revolutionized access to digital technology in France and has brought a wide range of usages within everyone's reach thanks to its unceasing focus on innovation. As the inventor of the first-evertriple-play box, the Group has pioneered multiple ground-breaking technologies. Our development has been supported by an ambitious strategy of investing in ultra-fast landline and mobile networks.
The Group has grown around a single ambition - to bring the best connectivity to as many people as possible, through straightforward offers and innovative products that are accessible to everyone. And our business development has been underpinned by four deeply-embedded values: boldness, autonomy, flexibility and effectiveness, which have shaped our expertise and embody our innovation capacity and agility.
Over the years we have built up solid strengths: a strong brand, top-qualityultra-fast networks and a robust financial structure. Today, Iliad has some 20 million subscribers in France and 3 million in Italy and employs over 10,000 people.
2018 was a difficult year for Iliad, marked by poor sales performances, a lack of forward-thinking and delays in adapting and executing our business strategy. The Group has drawn lessons from this experience and has launched an in-depth transformation of its business model with the implementation of 7 main initiatives:
i.Deep repositioning of our commercial strategy to gain in agility and efficiency;
ii.New aproach to HR strategy with 20 workshops;
iii.Reshaping our FTTH processes;
iv.Acquisition of Jaguar Network as a springboard to enter the Enterprise market;
v.New innovation wave with the launch of the Freebox Delta and 10G fibre;
vi.Reinforcement of the spectrum portfolio in France (spectrum refarming as per the « New Deal » with the Government) and Italy (acquisition of 5G spectrum);
vii.Project of strategic partnership with Cellnex, to optimize our mobile rollouts in France and Italy.
Our results for the first quarter of 2019 demonstrate how this strategy is beginning to pay off and have laid the ground for the presentation of our "2024 Odyssey" plan, which is designed to bring the latest connectivity solutions to people across France and Italy as well as the French B2B market.This strategy aims to combine revenue growth, cash flow generation and innovation.
This new growth cycle and the "2024 Odyssey" will be powered by strengthening of our position in the fiber market, ramping up our 4G and 5G networks, developing our B2B activities in France, and significantly increasing our business in Italy.
Fiber (France): reinforcing our position as the leading alternative FTTH operator throughout the country
Iliad is currently France's leading alternative FTTH operator, with over one million subscribers, and our aim is to extend this positioning by covering the whole country.
Our growth in this market will be fueled by (i) giving our subscribers the best FTTH performances and the latest innovations, (ii) accelerating FTTH rollouts throughout France and standardizing subscriber connection processes, and (iii) improving our sales and marketing approach (with better positioned offers, loyalty plans and more diversified distribution channels).
Free currently offers the best FTTH service quality as well as the best speeds1. It is also France's first operator to offer 10G Fiber technology and to give all of its subscribers in France an average upload speed of 600 Mbps.
Iliad has signed new co-financing agreements, notably for areas covered by "public initiative networks" (in non-densely populated areas of France), and aims to finalize rapidly agreements with the country's remaining networks in order to make the Group's offers accessible in all French regions. The pace at which we will be able to market our offers on these new networks will be boosted by our measures to standardize subscriber connection processes.
A new momentum has therefore begun and has already started to bear fruit, with our FTTH subscriber base doubling in 2018 and the number of our connectible sockets increasing by 50%. The challenge now is to make fiber a real tool for winning new subscribers.
•Some 30 million connectible sockets by 2024, covering the whole of France, particularly all private initiative networks
•Over 4.5 million fiber subscribers
1Best average download speed (over 450 Mpbs), according to the nPerf survey of landline Internet connections for 2018 in Metropolitan France
Mobile (France): becoming the leading alternative operator for ultra-fast 4G and 5G mobile
Supported by a state-of-the-art network covering the whole of France, our aim is to become France's leading alternative operator for ultra-fast 4G and 5G mobile.
Our growth in this market will be based on (i) the rollout at an unprecedented pace of a network that offers the best service quality and is 5G-ready, and (ii) an "upscaling" sales policy focused on encouraging subscribers to sign up for ultra-fast mobile.
Our network rollout will maintain a steady pace and we aim to build 2,000 new mobile sites on average each year helped notably by our partnership with Cellnex and more mutualization. This, combined with the massive 4G+ rollouts this year, the re-balancing of our frequency portfolio in the near future, our network's growing density and the systematic use of fiber at our mobile sites, will enable us to offer the best quality of service and be 5G-ready as soon as the new frequencies are available. Our objective is to have deployed 10,000 sites using 700 MHz spectrum in 4G+ by the end of 2019.
At the same time, we will continue to implement our new sales policy aimed at encouraging subscribers to sign up to our 4G data plan.
•Have a latest-generation 4G/5G network comprising more than 25,000 sites by 2024
•Over 80% of subscribers on the Free Mobile Unlimited 4G Plan by 2024 (versus 58% today)
•Opening up of the market for combined service/handset offerings
The B2B market (France): creating a new national-scale operator and giving businesses the benefits of our innovation capacity and value for money
The French B2B market represents approximately €10 billion and is characterized by a duopoly that cannot be competed with by the numerous small regional players that do not have end-to-end control of their infrastructure. Backed by its expertise, innovation capacity and proprietary infrastructure, Iliad ambitions to becoming a new benchmark player in the French B2B market, facilitating the digital transformation of French companies to bolster their competitiveness.
Our growth in this market will be propelled by (i) the fact that we control our national-scale infrastructure and (ii) the development of innovative and competitive access and service offerings.
The Group will have 30 million connectible FTTH sockets and over 25,000 mobile sites by 2024, and it already owns more than 60,000 sq.m of datacenters.
Iliad's strategic acquisition of Jaguar Network offers major synergies in terms of capital expenditure, innovation and expertise, and will enable us to develop competitive access and services offerings.
•A presence in the access and services markets as a priority
•4% to 5% market share by 2024
•€400 to €500 million in revenues by 2024
Italy: becoming a leading convergent player
Drawing on the success of Iliad Italia's commercial launch in 2018, the Group's goal is to become a leading player in the Italian telecommunications landscape, both in the landline and mobile markets.
Our growth in Italy will be based on (i) initially, the rapid rollout of the mobile network, and (ii) our ongoing sales drive.
The Group plans to have a network of 10,000 to 12,000 sites in Italy in the medium term, enabling it to carry a large proportion of its own traffic and to improve our margins. We will continue to implement our subscriber-winning strategy via a straightforward, transparent and innovative model.
•Have 10,000 to 12,000 sites by 2024
•Generate at least €1.5 billion in revenues in the long term
•Reach EBITDA breakeven with a market share of less than 10%
This investment cycle will be underpinned by a solid balance sheet structure and a French business whose cash generation will begin in 2020 and will then intensify throughout 2020-2024.
The presentation given at Iliad's Capital Markets Day will be available on the Group's website at
Iliad is the parent company of Free, the inventor of the Freebox, the first multiservice box on ADSL. Free is behind numerous innovations in the Broadband and Ultra-Fast Broadband access segment (VoIP, IPTV, flat-rate calling plans to multiple destinations, etc.) and provides straightforward and innovative offerings at the best prices. Since January 2012, Free has brought mobile phone usage within everyone's reach with straightforward, no-commitment offerings at very attractive prices. As at March 31, 2019, Free had nearly 20 million subscribers in France (6.4 million Broadband and Ultra-Fast Broadband subscribers and 13.4 million mobile subscribers). On May 29, 2018, the Group launched its mobile network in Italy under the Iliad brand, becoming the country's fourth operator, and had over 3.3 million subscribers at March 31, 2019.
Exchange: Euronext Paris
Market place: Eurolist A of Euronext Paris (SRD)
Ticker symbol: ILD
FTSE classification: 974 Internet
Member of Euro Stoxx, SBF 120, CAC Mid 100
Iliad SA published this content on 07 May 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 07 May 2019 05:47:02 UTC