• Growing ARPU in Fixed and Mobile
  • Improving Revenue trend both QoQ (+1.3%) and YoY (-2.4%)
  • Strong growth in Adjusted EBITDA (+19%) and Adjusted EBITDA margin at 38%
  • Accelerating rhythm of DSL to Fiber migrations in Fixed
  • Strong Sales momentum in Mobile Postpaid in June
  • Accelerating investment in 4G and Fiber
  • Growing ARPU in Fixed and Mobile

Having stabilized in the first quarter of 2015, Mobile postpaid ARPU begun to rise again in the second quarter to reach €26.1 up 0.4% compared to Q2 2014. Mobile ARPU is now on the same growth as Fixed ARPU which continued to grow in Q2 to reach €35.3 up 3.8% compared to Q2 2014 with a gross adds Fixed ARPU now 9% higher than the ARPU of the fixed customer base.

The marketing strategy aimed at generating ARPU growth, generating value through a clear focus on high end customers and quadruple play is now bearing fruit in both fixed and mobile.

  • Improving Revenue trends both sequentially (+1.3% QoQ) and on annualized basis (-2.4% YoY)

For the second quarter, Numericable-SFR posted revenue of €2.78 billion, down by 2.4% compared to Q2 2014 but up 1.3% compared to Q1 2015. This revenue trend is a clear improvement on the revenue performance of Q1 2015, which was down 4.6% compared to Q1 2014.

In B2C, revenue was down 2.3% compared to Q2 2014 at €1.91 billion. B2C Fixed revenue was down 1.5% as a result of the decline in the DSL customer base. B2C Mobile revenue was down 2.9%. In B2B, revenue was down 3.9%.

  • Strong growth in Adjusted EBITDA (+19%) and Adjusted EBITDA margin at 38%

The strong growth trajectory seen in the first quarter is confirmed in the second quarter with adjusted EBITDA at €1.06 billion up 19% thanks to the continued good progress of the synergies implementation plan. As a result, the Adjusted EBITDA margin was up 7.2% pts at 38.4%, which gives us strong confidence in achieving our medium term target of 45% Adjusted EBITDA margin.

  • Accelerating rhythm of DSL to Fiber migrations in Fixed

The migration plan of fixed customers from high speed broadband (DSL) to superfast broadband (Fiber) has now started to ramp up and with 25 000 migrations in June, monthly migration levels have already shown a fivefold increase since January.

  • Strong Sales momentum in Mobile Postpaid in June

The commercial recovery launched in May already delivered results in June with gross sales up 40% compared to the remainder of the first half of 2015. On June 30th the Group had 21.9 million mobile customers and 6.4 million fixed customers of which 1.7 million were Fiber customers.

  • Accelerating investment in 4G and Fiber

The Group's Fiber and 4G footprint continued to expand in the second quarter. 58% of the French population is now covered by our 4G network, implying an 8% pts increase since the beginning of 2015. Our targets remain to reach 65% to 70% by year end and 90% by the end of 2017.

Numericable-SFR, the clear Fiber leader in France, continues to drive the market. More than 7 million households and commercial sites now have a fiber connection (ranging from 100 Mega to 1 Giga of fiber speed). Over the last twelve months, the Group has deployed 1.1 million additional plugs. The rhythm of deployment is clearly accelerating to a level of 2 million plugs per annum in order to reach our targets of 7.7 million fiber homes passed in 2015, 12 million in 2017 and 15 million in 2020, thanks to the massive deployment of FTTH in France's less dense areas and the continued partnerships with local municipalities.

Q2 2015 Key figures

Total CAPEX spent by the Group in Q2 2015 amounted to €409 million, down 10% compared to Q2 2014. Important savings in the Group's CAPEX have enabled the Group to continue its ambitious Fiber and 4G roll-out plans. The company's aggressive CAPEX plan will enable the company to remain the clear Fiber leader in France and to continue to promote customer migrations from DSL to Fiber.

Group Net Debt amounted to €12.406 billion at the end of Q2 2015. The deleveraging of the Group continued in the second quarter at the end of which the Group's Net Debt to Adjusted EBITDA ratio was at 3.0x after taking into account the payment to Vivendi for the 10% share buyback in May. This sequential stability in our net debt to EBITDA ratio has been realized thanks to strong EBITDA growth and continued free cash flow improvements.


Key proforma financial indicators for Q2 2015 and Q2 2014

Key proforma financial indicators for H1 2015 and H1 2014

Key proforma performance indicators for H1 2015 and H1 2014

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