Free telephones and cell phones will arrive in Italy before the summer. The Iliad group, in fact, is getting closer and closer to the launch of the service. "We are in a 'drive test' phase with cars equipped in different call configurations crossing Italy to verify the good functioning of the network," said company boss Maxime Lombardini in Paris where the group's 2017 accounts were presented. adding: “We are close to the launch which will arrive before the summer”.
The press release from the group headed by Xavier Niel also specifies that in the framework of the development of its Italian project Iliad has invested 314 million euros. For 50 million it concerns the purchase of frequencies from Wind/Tre and for 220 million for the renewal of the 1.800 MHz frequencies until 2029 paid to the Italian State. During the year – specifies the note – the group created the technical architecture necessary for the launch of the mobile offer. The Italian branch was structured with the hiring of 80 people and with a "complete and Italian" management team. The Iliad group aims to break even in terms of Ebitda in Italy with a market share of less than 10%.
If these are the objectives for Italy, the group's accounts in France last year recorded a stable net profit of 405 million euros (+0,5%) and revenues growing by 5,6% to 4,98, 76 billion. As explained in a note, the net profit was affected by the extraordinary corporate tax contribution introduced by the French government at the end of the year, for an amount of 480 million. The recurring net profit is indicated at 19,3 million, up by 2016% on 75 and "by 6% in three years". Ebitda is up 1,77% to 35,6 billion and the Ebitda margin is up slightly to 862%. Current operating profit amounted to 16 million (+XNUMX%).
At the meeting of 16 May, the group will propose the payment of a dividend of 0,68 euros per share.
In France, the group has over 20 million subscribers, through the operator Free which practices particularly aggressive commercial policies and focuses on bargain prices. Of these, 13,7 million concern mobile telephony and 6,5 million fixed broadband and ultra-broadband services. At the end of December, Free had 24% of the broadband and ultra-broadband market and 19% of the mobile telephony market. In the mobile sector, underlines the press release, the group registered almost one million new subscribers in 2017 (net of terminations), which puts it in first place among operators for the sixth consecutive year in this area.
The Iliad group plans to bring its market share in France to 25% in broadband and ultra-broadband in the long term and in mobile it aims to open 2.000 new sites in 2018, with an increase in 4G coverage close to 90% and 3% 95G coverage and 25% market share in the long run. At a financial level, an Ebitda margin is expected to increase in 2018, with the aim of reaching a margin of more than 40% in 2020 in France and with a level of investments on the domestic market in 2018 between 1,4 and 1,5 billion of Euro.
However, revenues slightly lower than analysts' expectations who aimed on average for a target of more than 5 billion and the, albeit slight, drop in Arpu (33,9 euros against 34,7 euros at the end of 2016) weighed down the stock in Stock exchange in Paris where it shares 184,2 euros, down 6,5% at 10:59 on Tuesday morning.
(updated 12:55)
