The third quarter figures underscore Altice Portugal’s importance as the “cash cow” of the group led by Patrick Drahi. The owner of MEO represents 57% of Altice Internacional’s revenue and 59% of EBITDA. While there is talk of a full or partial sale of the Ana Figueiredo-led operator, EBITDA minus capex, which refers to “cash” released after investments in the network and other infrastructure, rose 43.2% in the third quarter. .
Altice Portugal released its third-quarter results yesterday, at the same time as the other units that make up the Altice Internacional holding, which brings together the Patrick Drahi group’s businesses outside France and the United States. The figures released yesterday demonstrate the importance that the company led by Ana Figueiredo has in the group as a whole, both in terms of weight in revenue and contribution to earnings before interest, taxes, depreciation and amortization (EBITDA), which represents 57% and 59%. %, respectively.
Between July and September, Altice Portugal recorded revenues of €742 million, 9.1% higher than in the same quarter of 2022, with this increase mainly supported by the corporate client area, which grew by 14.5% year-on-year, well above The expected inflation rate for this year in Portugal (5.4%).
“This quarter’s results show that we are a strong company with financial and operational capabilities. This quarter is notable for the growth trajectory we have been able to achieve with an increase in customer base and growth in revenue and operational results,” the company’s CEO told JE.
“Altice Portugal reaches 95.6% of the Portuguese population served by 5G and has 6.3 million homes and businesses equipped with fibre,” added Ana Figueiredo.
Residential business, which includes fixed and mobile phone services, grew by 4.04% in the same period. The Portuguese unit’s sales represented 57% of Altice Group’s revenue in the third quarter of the year, which amounted to 1.28 billion euros (0.6% lower than in the same period in 2022).
Altice Portugal’s EBITDA rose 20.3% to €281 million, representing 59% of the group total of €476 million. Altice Portugal’s EBITDA increase in Q3 is compared with increases of 9% and 10.5% in Q1 and Q2, respectively.
In contrast, earnings before interest, taxes, depreciation and amortization (EBITDA) minus capital expenditures, i.e. the value that the company deploys excluding the amount invested in its networks and other capital expenditures, saw a strong year-on-year increase of 43.2% in the third quarter, to €171 million.
This strong increase in EBITDA for the MEO owner occurs at a time when there is talk in the market about the possibility of selling Altice Portugal, in whole or in part, as part of the group’s deleveraging strategy led by Patrick Drahi. .
For the group as a whole, earnings before interest, taxes, depreciation and amortization (EBTIDA) minus capital expenditures rose 20.5% in the third quarter, to 271 million euros, according to financial information released yesterday. On the Altice International website. Group EBITDA rose a more modest 3.9% to €476 million.
The Portuguese operation was the only one to see an increase in revenue
In the third quarter, only the Portuguese operation saw an increase in its turnover, among the various units that are part of Altice Internacional (which does not include the group’s businesses in France and the United States). In Israel, revenues decreased by 14.5%, while in the Dominican Republic they decreased by 8%. At a consolidated level, Altice Internacional saw a 0.6% decline in revenue in the third quarter, compared to the same period last year, to €1.28 billion.
The company, part of the French Altice group, did not disclose its net results or remaining income statement.
Altice Portugal’s revenue rose 11.6% in the nine months of 2023
Altice Portugal’s revenues rose 11.6% year-on-year in the first nine months of the year, reaching €2.15 billion. In the same period, EBITDA rose 13.5% to €781 million.
According to the company that owns MEO, the growth in revenues is due to increasing the customer base, diversifying the portfolio of products and services, and investing in the company’s networks, both at the infrastructure level and enhancing the quality of services. service. The net growth in the customer base is also due to the fact that disconnection levels have been historically low, he said.
By the end of September, compared to the numbers recorded a year ago, the operator increased its fixed service customer base by 4.7%, with the number of TV subscription subscribers (Pay TV) an increase of 3.6%.
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