Iliad Reports Q3

PARIS -- Over the 3rd quarter 2009, the Iliad Group enhanced its strategic positioning in the French broadband market, due to the marketing dynamics of the Free brand and the continuing integration of Alice.

Iliad’s subscriber base thus totalled 4,420,000 at 30 September 2009.

(i) Over the 3rd quarter 2009, the Free brand recruited 100,000 new subscribers, net of cancellations, resulting in a market share of about 28.4% of new subscribers.

(ii) The Iliad Group continued to integrate Alice throughout the 3rd quarter, by implementing synergies such as the start of Alice subscribers’ unbundled in covered areas. The implementation of these operational synergies enabled Alice’s subscriber base to achieve an unbundling rate of 64% at 30 September 2009.

The continuing efforts to extend local loop unbundling, as well as the migration of Alice subscribers to the Free network enabled the Group to record an unbundled rate of close to 84%, ahead of the 82% year-end target.

Group revenues grew by more than 33% between 30 September 2008 and 30 September 2009. This increase was due to:

- organic growth by the Free brand,
- the consolidation of Alice,
- the growing usage of added value services available to Free and Alice subscribers. Revenues generated by these services thus totalled more than € 348 million to 30 September 2009, an increase of close to 36% over the period.

The Group consolidated its broadband ARPU to € 36.1 per month (excl. VAT) over the 3rd quarter 2009, in spite of a less favourable seasonal effect for the consumption of added value services over the summer.

MAIN GROUP OBJECTIVES FOR 2009

In light of this good operational performance, the Group will continue its profitable growth over the second half-year 2009 and confirms the following short and medium-term objectives:

- 5 million broadband subscribers in 2011.
- ADSL Free Cash Flow in excess of €300 million in 2009 (excluding Alice) and over €1 billion in 2009-2011 (including Alice).
- Generate incremental EBITDA of €90 million from Alice (on a full-year basis) from the second half of 2010.
- A very significant increase in net profit in 2009.
- As part of the rollout of its FTTH network, the Group confirms its objective of:

- providing horizontal coverage of 70% of Paris by the second half year 2009,
- providing horizontal coverage to 4 million households by end 2012.

Iliad (Euronext: ILD)