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Iliad Reports H1 Growth
Triple-play operator reports 52% increase in revenues to €337.8M and 24% rise in ADSL subscribers to 1.3M
August 2, 2005
4 Min Read
PARIS -- Iliad reinforced its leading alternative position in the French ISP market during the 2nd quarter 2005. Free managed to increase its number of ADSL subscribers from 1,064,000 as of December 31, 2004 to 1,316,000 as of June 30, 2005. Free increased its ADSL subscriber base by 102,000 in the 2nd quarter.
Despite intense competitive pressure, Free consolidates its position as the number 2 broadband ISP in France and as the leading alternative to Wanadoo. These statistics confirm the power of Free ADSL offering and in particular of the Freebox services. At this date, Free remains the only provider with a national triple-play offer based on ADSL 2+ technology, integrated in one single CPE, for a flat all-inclusive monthly fee of € 29.99.
In addition, Free maintained its focus on unbundling of the local loop. On June 30, 2005, Free had over 883,000 unbundled customers connected to its network, or 67.1% of its subscribers base vs. 53.2% as of December 31, 2004. Over the 1st half 2005, Free unbundled close to 43% of all the unbundled lines in France.
As of June 30, 2005, thanks to the modem upgrade program launched in November 2004, about 1,180,000 users were equipped with a Freebox, close to 90% of Free’s subscriber base.
During the 1st half 2005, value-added services generated revenues of approximately € 27.5 million, compared with € 13.5 million in 2004 for the entire year, corresponding to an ARPU of over € 4.7 per Freebox user per month. The usage of these value-added services are broken down as follows :
1,135,000 telephone users
130,000 paying subscribers to Freebox TV serv
Table 1: 1H 2005 & 2Q 2005 Revenues
(in � �000) | 1H2005 | 1H2004 | Change | 2Q2005 | 2Q2004 | Change |
Consolidated Revenues | 337,832 | 221,949 | 52% | 174,713 | 117,453 | 49% |
Internet Revenues | 292,742 | 173,018 | 153,512 | 91,340 | ||
- Intersegment | (32,746) | (31,042) | (16,014) | (15,655) | ||
Cons. Internet Revenues | 259,996 | 141,976 | 83% | 137,497 | 75,685 | 82% |
Telephony Revenues | 84,344 | 79,024 | 40,778 | 42,118 | ||
- Intersegment | (11,946) | (6,349) | (6,174) | (3,887) | ||
Cons. Telephony Revenues | 72,399 | 72,675 | 0% | 34,605 | 38,231 | (9%) |
Other Services Revenues | 9,699 | 13,858 | 4,622 | 7,447 | ||
- Intersegment | (4,262) | (6,560) | (2,012) | (3,909) | ||
Cons. Other Services Revenues | 5,437 | 7,298 | (25%) | 2,611 | 3,538 | (26%) |
As anticipated, the Telephony sector started to suffer from the ever growing success of voice over broadband offers. The total number of One.Tel subscribers declined slightly over the period to 328,000 customers billed on June 30, 2005 from 335,000 as of December 31, 2004. Onetel ARPU stood at around € 15.8 per subscriber per month, marking a slight decrease quarter on quarter. Kertel posted a stable 1st half 2005 with over 3.6 million cards sold over the period vs. close to 3.6 million cards sold in the 1st half 2004.
Outlook
Based on 1st half performance, Iliad reiterates a number of key objectives for 2005 :
To reach 1.5 million ADSL subscribers by end 2005 and to remain the leading alternative operator in the French residential ADSL market
To maintain its focus on unbundling of the local loop and reach over 70% unbundling ratio
To complete 100% ADSL2+ DSLAM upgrade by end 2005
To reach free cash flow break even during the 2nd half 2005
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