Altice SA: Altice / HOT Group First quarter 2013 results
(Thomson Reuters ONE) -
Total Revenue increased 4% Q1 2013 vs Q1 2012
Cable EBITDA increased 17% Q1 2013 vs Q1 2012
Triple play cable customers reached 36%
Mobile continues to face strong competition
Luxembourg, Luxembourg - May 14, 2013: Altice Finco S.A. ("Altice" or the
"Company"), today announces financial and operating results for the three months
("Q1") ended March 31, 2013 for the Company and HOT Telecommunications Systems
Ltd ("Hot Group"). Highlights for the quarter compared to the same period for
2012 (unless noted), include:
* Total revenue of NIS 1,065 million and Total EBITDA of NIS 399 million
* Cable Revenue of NIS 841 million stable compared to Q1 2012
* Cable EBITDA increased by 17% to NIS 425 reflecting cost restructuring
* Cable RGU increased to 2.356 million compared to 2.343 as of Q4 2012
* Triple play cable customers relationships reached 36%
* Substantial increase in the average Internet speeds
* In a strong competitive market, mobile revenues increase by 23% to NIS 232
million
* Mobile UMTS RGUs increased to 482,000 compared to 441,000 UMTS RGUs as of Q4
2012
* The Altice group is on track to expand the Restricted Group with its
investments in Coditel, Belgium and Luxembourg and Cabovisao, Portugal in
2013, subject to 3x-4x leverage test and market conditions
Altice CEO Dexter Goei stated, "Since the take private in December 2012, we have
successfully started the reorganization of the business in Q1 2013 resulting in
Cable EBITDA up 17% versus Q1 2012 and Cable EBITDA Margin reaching 51%. In
addition we have successfully accelerated the conversion of our customer base
into triple play subscribers, reaching already 36% of our base. We continue to
take UMTS mobile residential market share in an intense competitive environment,
and expect that the continued built out of our UMTS network will decrease
roaming expenses and interconnection costs in the next quarters to come."
HOT Group Financial Key figures
(NIS in millions) Q1 2013 Q1 2012 Q1 2013 vs
2012
Revenue (*) 1,065 1,027 4%
Of which : Cable (1) 841 840 0%
Mobile 232 189 23%
Total operating income 84 147 (43%)
Of which : Cable (1) 203 152 34%
Mobile (119) (5) (2280%)
Net income 17 60 (72%)
EBITDA (*) (2) 399 403 (1%)
Of which : Cable (1) 425 364 17%
Mobile (26) 39 (167%)
EBITDA Revenue % 37% 39% (2%)
Operating Cash Flow 281 287 (2%)
Of which : Cable (1) 336 280 20%
Mobile (55) 7 (886%)
Capital Expenditure (*) (3) (177) (375) (53%)
Of which : Cable (1) (122) (300) (59%)
Mobile (55) (75) (27%)
Free Cash Flow (*) (4) 98 (18) 712%
Of which : Cable (1) 189 42 350%
Mobile (91) (60) (52%)
(*) Segment information (revenue, operating profit, EBITDA, capital expenditures
and Free Cash Flow) are presented before elimination of intercompany
transactions
HOT Group Operational Key figures
in thousands Q1 Q4 Q1 Q1 2013 Q1 2013
2013 2012 2012 vs vs
Q4 2012 Q1 2012
Cable Customers 1,188 1,198 1,235 (1%) (4%)
ARPU (in NIS) (5) 223 220 217 1% 3%
Triple Customers 429 413 369 4% 16%
% Triple Customers 36% 34% 30% 2% 6%
Cable TV Subscribers 898 896 893 - 1%
Broadband Internet subscribers 774 771 773 - -
Telephony lines 684 676 654 1% 5%
Mobile UMTS Subscribers 482 441 - 9% -
Mobile I-Den Subscribers 276 325 437 (15%) (37%)
(*) Segment information (revenue, operating profit, EBITDA, capital expenditures
and Free Cash Flow) are presented before elimination of intercompany
transactions
(1) Cable segment include the Cable television, Telecom segments and ISP
services
(2) EBITDA represents profit before net financing income, taxes on income,
depreciation and amortization, and before expenses in respect of options and
before expenses (income) derived from other expenses (income), net and network
set up expenses. EBITDA is an additional measure used by management to
demonstrate our underlying performance and should not replace the measures in
accordance with IFRS as an indicator of our performance, but rather should be
used in conjunction with the most directly comparable IFRS measure.
Reconciliation of EBITDA to operating income provided on page 18 of this press
release.
(3) Capital expenditures is a measure of the amount of capital expenditure
accrued during the period and is not a measure of the cash used for capital
expenditure during the period. The difference between accrued capital
expenditure in the period and the cash used for capital expenditure during the
period is a result of delayed payment obligations in relation to our capital
expenditures. For the three months ended March 31, 2012 and 2013 we had cash
used for capital expenditures of NIS 305 million and NIS 183 million
respectively. We also had cash used to capitalize commissions which were
reflected in our operating cash flow of NIS 15 million and NIS 26 million for
the three months ended March 31, 2012 and 2013, respectively. We had total cash
used for capital expenditures for the three months ended March 31, 2012 and
2013 of NIS 320 million and NIS 209 million respectively.
(4) Free cash Flow is defined as net cash provided by the operating activities
less purchases of property and equipment and purchase of intangibles, each as
reported in the Group's consolidated statement of cash flows. Free cash flow is
an additional measure used by the management to demonstrate the Group's ability
to service debt and performance, but rather should be used in conjunction with
the most directly comparable IFRS measure.
(5) ARPU is an average monthly measure that we use to evaluate how effectively
we are realizing revenues from subscribers. ARPU is calculated by dividing the
revenue (for the service provided, in each case including the proportional
allocation of the bundling discount, and after certain deductions) for the
respective period by the average number of RGUs for that period and further by
the number of months in the period. The average number of RGUs is calculated as
the number of RGUs on the first day in the respective period plus the number of
RGUs on the last day of the respective period, divided by two.
1. Review of HOT Group operational Key figures
(NIS in millions) Q1 2013 Q1 2012 Q1 2013 vs
Q1 2012
Total revenues 1,065 1,027 4%
Of which : Cable (1) 841 840 0%
Mobile 232 189 23%
Intercompany (8) (2) -
Total operating income 84 147 (43%)
Of which : Cable (1) 203 152 34%
Mobile (119) (5) (2280%)
Total EBITDA 399 403 (1%)
Of which : Cable (1) 425 364 17%
Mobile (26) 39 (167%)
(1) Cables segment include the Cable television, Telecom segments and ISP
services
1.1. Cable
In the Cable segment, the revenues are stable at NIS 841 million compared to NIS
840 million for the three months ended March 2012. This stability is explained
by the 4% increase in the Cable-based services ARPU (NIS 223 in the first
quarter 2013 compared to NIS NIS 217 for the first quarter 2012) which was
offset by the decrease in the number of subscribers by 4% (1,188,000 for the
first quarter 2013 compared to 1,235,000 for the first quarter 2012).
The increase in the Cable-based services ARPU is explained by higher number of
RGUs per customer as a result of our triple-play service, which the number of
triple play subscribers as a percentage of our Cable Customer relationships
increased to 36% as of March 31, 2013.
In the Cable segment, operating income in the period amounted to NIS 203 million
as compared to NIS 152 in the comparative period last year, an increase of 34%
mainly derived from:
* a decrease in salaries and social benefits expenses for approximately NIS
30 million resulting from the measures taken to increase the efficiency of
the costs structure, enabled by an increase in the quality of the network as
a result of the investments made and the improvement of the customers
service systems.
* a decrease in network and Set top Boxes maintenance for approximately NIS 9
million as a result of investments performed in the network and more
efficient process for set top boxes maintenance,
* a decrease in the Royalties for approximately NIS 11 million paid to the
State of Israel following the regulations enacted under the Communications
Law which provides for an ongoing decrease in the rate of royalties
applicable to the Telecommunication licensees, which have been reduced to
0% commencing on January 2, 2013,
* a one-off decrease in the advertising expenses for approximately NIS 6
million as a result of the launching of Hot Net ISP in the first quarter
2012,
* the above decreases were offset by an increase in the depreciation and
amortization for NIS 10 million.
The EBITDA increased by 17% to 425 million compared NIS 364 million for the
comparative period. This increase is mainly driven by the increase in operating
income as a result of the cost optimization and decrease in other expenses as
explained above.
1.2. Mobile services
Revenue generated by our mobile segment through our subsidiary, HOT mobile,
increased to NIS 232 million for three months ended 2013 from NIS 189 million
for the three months ended 2012, an increase of 23%, which derived from the
increase in the number of subscribers from the UMTS network which was launched
in May 2012, partially offset by the decrease in the number of iDEN subscribers.
The average monthly revenues per mobile subscriber has decreased (NIS 82 in the
first quarter 2013 and NIS 110 in the first quarter 2012) as a result of a
strong competitive environment and the loss of higher iDEN ARPU subscribers.
UMTS subscribers have increased by 9% to approximately 482,000 as of March
31, 2013.
The numbers of iDEN subscribers as of March 31, 2013 is approximately 276,000,
compared to approximately 437,000 as of March 31, 2012. The reasons for the
decrease in the number of subscribers are mainly due the termination of a
contract with the Israel Defense Force, the natural churn and the transfer of
subscribers following the launching of the UMTS network.
The Mobile service revenue, including subscriptions and interconnection fees
received, increased to 188 million for the first quarter 2013 compared to NIS
148 million for the first quarter 2012. Handset revenue increased slightly to
NIS 44 million for the first quarter 2013 compared to NIS 41 million for the
first quarter 2012,
The operating loss in the period amounted to NIS 119 million as compared to NIS
5 in the comparative period last year, a decrease mainly derived from the
increase in the operating expenses as a result of:
* an increase in the depreciation and amortization for NIS 23 million,
* an increase in interconnection fees and cellular roaming costs by NIS 85
million as a result of the UMTS based network launched in May 2012,
* an increase in the cost of goods sold for the handsets by NIS 9 million as a
result of the UMTS based network launched in May 2012,
* the recognition of a provision of NIS 27 million in respect of the decision
to vacate the office building previously occupied by Hot Mobile under a
leasehold arrangement extending until 2019,
* the increase in the expenses as explained above is offset by increased
revenues of NIS 43 million compared to the last first quarter.
Mobile generated negative EBITDA of NIS 26 million for the three months ended
March 31, 2013 compared to a positive EBITDA of NIS 39 million for the three
months ended March 31, 2012 primarily due to increased interconnection and
cellular roaming costs relating to our UMTS-based service partially offset by
the increase in the mobile revenues.
HOT Group Review of financial Key figures
(NIS in millions) Q1 2013 Q1 2012 Q1 2013 vs Q1 2012
Revenues 1,065 1,027 4%
Depreciation and amortization 276 244 13%
Operating expenses 566 513 10%
Selling and marketing expenses 62 79 (22%)
Administrative and general 38 37 3%
Other expenses, net 39 7 457%
Operating income 84 147 (43%)
Financing expenses, net 61 65 (6%)
Tax expenses 6 22 (73%)
Net income 17 60 (72%)
1.3. Q1 2013 versus Q1 2012
1.3.1. Revenues
The Group's revenues in the period amounted to NIS 1,065 million, compared to
NIS 1,027 million in the corresponding period last year, an increase of NIS 38
million. An increase of NIS 40 million in the revenues in the mobile segment,
derived from the new network (UMTS), which was launched in May 2012.
1.3.2. Expenses
The Group's depreciation and amortization expenses in the period amounted to NIS
276 million, compared to NIS 244 million in the corresponding period last year,
an increase of approximately 13%.
The Group's operating expenses in the period amounted to NIS 566 million,
compared to NIS 513 million in the corresponding period last year, an increase
of approximately 10%. The increase of NIS 53 million derived primarily from an
increase in interconnect fee expenses in the mobile segment, which was partially
offset by a decrease in salary and social benefit expenses and a decrease in
royalties expenses payable to the Israeli government.
The Group's selling and marketing expenses in the period amounted to NIS 62
million, compared to NIS 79 million in the corresponding period last year, a
decrease of approximately 22%. The decrease of NIS 17 million derived primarily
from a decrease in advertising expenses and in salaries and social benefits
expenses.
The Group's administrative and general expenses in the period amounted to NIS
38 million, compared to NIS 37 million in the corresponding period last year,
without any significant change.
The Group's other expenses in the period amounted to NIS 39 million, compared to
NIS 7 million in the corresponding period last year, an increase of NIS 32
million in expenses. The other expenses in the period included a non-recurring
expense of NIS 27 million following the recognition of a provision in respect
of the decision to vacate the office building previously occupied by Hot Mobile
under a leasehold arrangement extending until 2019.. See Note 5A to the Hot
Consolidated financial statements as of March 31, 2013 for details.
1.3.3. Net result
The Group's financial expenses in the period amounted to NIS 61 million,
compared to NIS 65 million in the corresponding period last year, a decrease of
NIS 4 million.
The Group's tax expenses in the period amounted to NIS 6 million, as compared
with NIS 22 million in the corresponding period last year, a decrease of 73%.
The decrease derives primarily from the updating of deferred tax assets in
respect of timing differences. The effective tax rate is 26% for the first
quarter 2013 compared to 27% for the last year first quarter.
The Group's net income for the period amounted to NIS 17 million, compared to
NIS 60 million in the corresponding period last year, a decrease of 72%. The
decrease of NIS 43 million in the net income derived from the Mobile segment
which faces strong competition.
Excluding the effects from the non-recurring liability due to the vacation of
the HOT mobile building (NIS 27 million before taxes and NIS 20 million after
taxes for the 2013 first quarter), the net income decreased by 40%.
1.3.4. EBITDA
The EBITDA for the period amounted to NIS 399 million (37% of revenues),
compared to NIS 403 million (39% of revenues) in the corresponding period last
year, a decrease of 2% in percentage of revenues. The decrease derives solely
from the Mobile segment.
1.4. HOT Group Cashflow
(NIS in millions)
Q1 2013 Q1 2012
Cash and cash equivalents at beginning of period 32 16
Net cash provided by operating activities 281 287
Net cash provided by (used in) investment operations (129) (305)
Net cash provided by (used in) financing operations (138) 16
Cash and cash equivalents at end of period 46 14
1.4.1. Net cash provided by operating activities
The net cash provided for the Group by operating activities in the period
amounted to NIS 281 million, compared to NIS 287 million in the corresponding
period last year, a decrease of NIS 6 million, which derived primarily from a
decrease in net income of NIS 43 million, offset by a positive impact of NIS 27
million of change in working capital and other operating assets and liabilities.
1.4.2. Net cash used in investment activities
The net cash used by the Group in investment activities in the period amounted
to NIS 129 million, compared to NIS 305 million for the corresponding period
last year, a decrease of NIS 176 million. The decrease derived primarily from a
decrease in the purchases of fixed assets and intangible assets in an amount of
NIS 122 million and from an increase of NIS 54 million in the repayment of
restricted cash.
1.4.3. Net cash generated provided by (used in) by financing activities
The net cash used by the Group in financing activities in the period amounted to
NIS 138 million, compared to net cash of NIS 16 million provided by the Group,
in the corresponding period last year, a change of NIS 154 million. The cash
used by the Group for financing activities in the period included the repayment
of bonds in an amount of NIS 63 million, the repayment of a loan from a related
party in an amount of NIS 55 million and the repayment of other long-term
liabilities in an amount of NIS 20 million.
The net cash provided by the Group in financing activities in the corresponding
period last year, in an amount of NIS 16 million, included the net receipt of
banking credit in an amount of NIS 398 million, which was offset by the payment
of a dividend of NIS 365 million.
1.5. HOT Group Capital expenditures
(NIS in millions)
Q1 2013 Q1 2012 Q1 2013 vs
Q1 2012
Cable Capital Expenditures 122 300 (59%)
Mobile Capital Expenditures 55 75 (27%)
Total Capital Expenditures 177 375 (53%)
Adjustment related to intercompany (1) - (1) -
Total Capital Expenditures 177 374 (53%)
The Capital Expenditure for the first quarter 2013 decreased by 53% compared to
the first quarter 2012. This decrease derived mainly from the accrued capital
intensity in the first quarter 2012 mainly due to:
* a one time capital expenditures 38 million related to the purchase of an
office building,
* the acquisition of new set top boxes (HD/PVR), and
* capital expenditures related to the expansion of the UMTS network which was
launched in May 2012.
1.6. ALTICE / HOT Group Debt profile
At the Hot Group, as of March 31, 2013, we carried local unsecured bonds of NIS
1,389 million after repayments of bonds in an amount of NIS 63 million during
the first quarter. At Altice Finco and Altice Financing S.A. we had EUR and USD
bonds outstanding translating into NIS 4,202 million as of March 31, 2013. Total
cash for the restricted group was NIS 323 million as of March 31, 2013. In
addition, Altice has a committed USD 80 million working capital facility which
is available but undrawn as of March 31, 2013.
(NIS in millions) As of March 31, 2013
HOT Group Altice Combined
Unsecured bonds HOT (4) 1,389 1,389
Secured bonds Altice (1) 2,655 2,655
Unsecured bonds Altice (2) 1,547 1,547
Total Altice Restricted Group Debt 1,389 4,202 5,591
Total Cash and cash equivalents 46 277 323
Net Annualized Leverage (L2QA) (3) 3.5X
Exchange rates as of March 31, 2013 are NIS1.00 =$0.274 and NIS1.00=?0.214
(1) USD 460 million and Euro 210 million respectively
(2) USD 425 million
(3) Excluding network lease amounting to NIS 121 million as of March 31, 2013
(4) The amount reflected above is reduced by capitalized debt issuance costs
Altice entered into certain hedging foreign exchange transactions to effectively
exchange a portion of the payment obligations for interest and principal of such
indebtedness from EURO/USD to NIS, see note 11 of the financial statements as of
December 31, 2012 of Altice Financing S.A. for a detailed description.
Schedule of upcoming events
* August 12, 2013 : second quarter 2013 results
Contacts Investor Relations
+35228371079
Dennis Okhuijsen
Altice Chief Financial Officer
IR(at)altice.net
HOT Group - Consolidated Income Statement
(NIS in millions) For the three months ended
March 31, March 31, Change in %
2013 2012
Revenues 1,065 1,027 4%
Depreciation and amortization 276 244 13%
Operating expenses 566 513 10%
Administrative and general expenses 38 37 0%
Sales and marketing expenses 62 79 (22%)
Other (income) expenses, net 39 7 457%
Operating income 84 147 (43%)
Financing income 10 10 (0%)
Financing expenses (71) (75) (5%)
Income before taxes on income 23 82 (72%)
Taxes on income (tax benefit) 6 22 (73%)
Net income 17 60 (72%)
HOT Group - Consolidated balance sheet
Assets (NIS million) March 31, December 31,
2013 2012
Cash and cash equivalents 46 32
Restricted cash 15 69
Trade receivables 503 549
Other receivables 63 62
Inventory 35 27
Current assets 662 739
Long-term trade receivables 74 82
Other long term receivables 130 115
Investment in available for sale financial asset 28 28
Fixed assets, net 4,041 4,136
Intangible assets, net 724 753
Goodwill 1,264 1,264
Deferred taxes 46 48
Non-Current assets 6,307 6,426
TOTAL Assets 6,969 7,165
Equity and Liabilities (NIS million) March 31, December 31,
2013 2012
Credit from financial institutions and current 125 125
maturities of bonds
Trade payables 973 1,062
Other payables 434 412
Short term loan from a related party 15 70
Provision for legal claims 55 68
Current Liabilities 1,602 1,737
Loans from financial institutions and bonds 1,264 1,326
Loans from a related party 1,900 1,900
Other long-term liabilities 352 374
Advances received for terminal equipment installation 53 52
Employee benefit liabilities, net 30 32
Deferred taxes 305 299
Non-Current Liabilities 3,904 3,983
Equity 1,463 1,445
TOTAL Equity and Liabilities 6,969 7,165
HOT Group - Consolidated statement of cash flow
For the three months
ended
Millions of NIS March 31, March 31,
2013 2012
+-----------------------------------------------------+---------+--------------+
|Cash Flow from Current Activities | 17 | 60 |
| | | |
|Net income | | |
| | | |
|Adjustments required to present cash flows from | | |
|current | | |
|activities : | | |
| | | |
|Depreciation and amortization | 300 | 244 |
| | | |
|Gain on disposal of fixed assets | | |
| | | |
|Taxes on income, net | 6 | 22 |
| | | |
|Change in employee benefit liabilities, net | (1) | 4 |
| | | |
|Linkage differentials on bonds | 1 | 2 |
| | | |
|Revaluation of other long term liabilities | | 3 |
| | | |
|Cost of share based payment | | 7 |
| | | |
|Financing and other expenses, net | 46 | 36 |
| +---------+--------------+
| | 352 | 318 |
| | | |
|Change in asset and liability items | | |
| | | |
|Increase (decrease) in trade receivables | 46 | (19) |
| | | |
|Increase in other receivable and long-term | | |
|receivables | (16) | (4) |
| | | |
|Increase in subscription acquisition costs | | |
| | | |
|Prepaid expenses paid to marketers | (26) | (15) |
| | | |
|Decrease (increase) in inventory | (8) | 5 |
| | | |
|Decrease (increase) in non-current trade receivables | 8 | (11) |
| | | |
|Increase (decrease) in trade payables | (52) | (21) |
| | | |
|Increase (decrease) in other payables | 7 | (10) |
| | | |
|Increase (decrease) in provision for legal claims | (13) | (9) |
| | | |
|Increase(decrease) in other long term liabilities | (1) | (2) |
| | | |
|Increase (decrease) in income in advance from the | | |
|installation | | |
|of terminal equipment, net | 1 | 5 |
| +---------+--------------+
| | (54) | (81) |
| | | |
|Cash paid and received over the course of the year | | |
|for : | (34) | (10) |
| | | |
| | | |
| | | |
|Net cash from current operations | 281 | 287 |
+-----------------------------------------------------+---------+--------------+
HOT Group - Consolidated statement of cash flow
For the three months
ended
Millions of NIS March 31, March 31,
2013 2012
+-----------------------------------------------------+----------+-------------+
|Net cash from current operations | 281 | 287 |
| | | |
| | | |
| | | |
|Cash Flow from Investment Activities | | |
| | | |
| | | |
| | | |
|Purchase of newly consolidated subsidiary | - | - |
| | | |
|Acquisition of fixed assets and intangible assets | (183) | (305) |
| | | |
|Proceeds from the disposal of fixed assets | - | - |
| | | |
|Repayment (investment) in restricted cash, net | 54 | - |
| | | |
| | | |
| | | |
|Net cash used in investment activities | (129) | (305) |
| | | |
| | | |
| | | |
|Cash Flow from Financing Activities | | |
| | | |
| | | |
| | | |
|Short-term credit from financial institutions, net | - | (86) |
| | | |
|Receipt of long-term loans from financial | (55) | 500 |
|institutions, net of re- | | |
|organization commissions and the issuance of bonds | | |
| | | |
|Receipt of loan from a related party | - | - |
| | | |
|Receipt of short-term loan from a related party | - | - |
| | | |
|Receipt of long-term loans from financial | (63) | (16) |
|institutions | | |
| | | |
|Increase in other long-term liabilities | - | (17) |
| | | |
|Repayment of other long-term liabilities | (20) | - |
| | | |
|Issuance of share capital | - | |
| | | |
|Dividend for shareholders in the Company | - | (365) |
| | | |
|Purchase of treasury shares | - | - |
| | | |
| | | |
| | | |
|Net cash used in financing Activities | (138) | 16 |
| | | |
| | | |
| | | |
|Increase (decrease) in cash and cash equivalents | 14 | (2) |
| | | |
|Balance of cash and cash equivalents at the beginning| 32 | 16 |
|of the year | | |
| | | |
|Balance of cash and cash equivalents at the end of | 46 | 14 |
|the year | | |
| | | |
| | | |
+-----------------------------------------------------+----------+-------------+
HOT Group Reconciliation of operating income to EBITDA
(NIS in millions) For the three months ended
March 31, March 31,
2013 2012 (*)
Operating income 84 147
Depreciation and amortization 276 244
Other income, net 39 7
Options (capital and phantom) - 5
EBITDA (1) 399 403
(*) Following the initial implementation of IAS19 (Revised), as described in
Note 2B(1) to the Hot Consolidated financial statements, the EBITDA for the
three months ended March 31, 2012 was adjusted by NIS 1 million.
(1) EBITDA represents profit before net financing income, taxes on income,
depreciation and amortization, and before expenses in respect of options and
before expenses (income) derived from other expenses (income), net and network
set up expenses. EBITDA is an additional measure used by management to
demonstrate our underlying performance and should not replace the measures in
accordance with IFRS as an indicator of our performance, but rather should be
used in conjunction with the most directly comparable IFRS measure.
HOT Group Summary Statistical and Operating Data
in thousands except percentages and as otherwise
indicated
March 31, December 31,
2013 2012
Total Israeli Homes 2,252 2,243
Customer Relationships
Cable Customer Relationships(1) 1,188 1,198
Cable Revenue Generating Units (RGUs)((2))
Digital Television RGUs 883 878
Analog Television RGUs 15 18
Total Television RGUs 898 896
Broadband Internet Infrastructure Access RGU 774 771
Fixed-Line Telephony RGUs 684 676
Total Cable RGUs 2,356 2,343
RGUs per Cable Customer Relationship (in units) 1.98x 1.96x
Cellular Revenue Generating Units (RGUs)((3))
UMTS RGUs 482 441
iDEN RGUs 276 325
Total Cellular RGUs(3) 758 766
Cable Services Penetration
Television RGUs as % of Total Israeli Homes 40% 40%
Broadband Internet Infrastructure Access RGUs as % of 34% 34%
Total Israeli Homes
Fixed-Line Telephony RGUs as % of Total Israeli Homes 30% 30%
Cable Customer Bundling((4))
Single-Play Customer Relationships as % of Cable * 47%
Customer Relationships
Double-Play Customer Relationships as % of Cable * 19%
Customer Relationships
Triple-Play Customer Relationships as % of Cable 36% 34%
Customer Relationships
in thousands except percentages and as otherwise March 31, December 31,
indicated 2013 2012
Churn((5))
Churn in Pay Television RGUs 13.6% 15.3%
ARPU((6))
Cable-based services ARPU (in NIS) 223 220
Market Share
Cellular Market Share((7)) 8% 8%
________________
* not reported
(1) Cable Customer Relationships represents the number of individual end users
who have subscribed for one or more of our cable-based services (including pay
television, broadband Internet infrastructure access or fixed-line telephony),
without regard to how many services to which the end user subscribed. It is
calculated on a unique premises basis. Cable Customer Relationships does not
include subscribers to either our cellular or ISP services.
(2) RGUs relate to sources of revenue, which may not always be the same as
customer relationships. For example, one person may subscribe for two different
services, thereby accounting for only one subscriber, but two RGUs. RGUs for pay
television and broadband Internet infrastructure access are counted on a per
service basis and RGUs for fixed-line telephony are counted on a per line basis.
(3) Cellular RGUs is equal to the net number of lines or SIM cards that have
been activated on our cellular network.
(4) Cable customer bundling for our stand-alone, double-play and triple-play
services is presented as a percentage of Cable Customer Relationships. Our
double play package customers include customers who have purchased a combination
of two services out of our pay television, broadband Internet infrastructure
access and fixed-line telephony services. Our triple-play package comprises pay
television, broadband Internet infrastructure access and fixed-line telephony
services.
(5) Churn is calculated by dividing the number of RGUs for a given service that
have been disconnected during a particular period (either at the customer's
request or due to a termination of the subscription by us) by the average number
of RGUs for such service, excluding transfers between our services (other than a
transfer between our cable services and cellular services), during such period.
For example, an analog television customer who migrates to our digital
television services or a customer who migrates from our double-play to triple-
play services or vice-versa will not increase churn.
(6) ARPU is an average monthly measure that we use to evaluate how effectively
we are realizing revenues from subscribers. ARPU is calculated by dividing the
revenue (for the service provided, in each case including the proportional
allocation of the bundling discount, and after certain deductions) for the
respective period by the average number of RGUs for that period and further by
the number of months in the period. The average number of RGUs is calculated as
the number of RGUs on the first day in the respective period plus the number of
RGUs on the last day of the respective period, divided by two.
(7) Our cellular market share is based on our estimate of the total cellular
lines in Israel, which is based on the number of lines reported by other
cellular operators in Israel. This market share calculation is not indicative of
nor does it correlate to the market share calculation required under our
cellular license. In relation to the addition of frequencies to our cellular
license enabling us to provide UMTS based 3G services, we were required to pay a
total license fee of NIS 705 million, out of which we paid NIS 10 million at the
time of receiving the license. The remaining amount equal to NIS 695 million is
payable in 2016 subject to certain deductions based on market share gained by
HOT Mobile (based on the higher of the market share as measured in September
2013 and September 2016).
NOT AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO PURCHASE SECURITIES
This press release does not constitute or form part of, and should not be
construed as, an offer or invitation to sell securities of Altice Finco S.A. or
Altice Financing S.A. (collectively the "Altice Issuers") or the solicitation of
an offer to subscribe for or purchase securities of an Altice Issuer, and
nothing contained herein shall form the basis of or be relied on in connection
with any contract or commitment whatsoever. Any decision to purchase any
securities of an Altice Issuer should be made solely on the basis of the final
terms and conditions of the securities and the information to be contained in
the offering memorandum produced in connection with the offering of such
securities. Prospective investors are required to make their own independent
investigations and appraisals of the business and financial condition of the
applicable Altice Issuer and the nature of the securities before taking any
investment decision with respect to securities of such Altice Issuer. Any such
offering memorandum may contain information different from the information
contained herein
FORWARD-LOOKING STATEMENTS
Certain statements in this press release constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include, but are not limited to, all statements
other than statements of historical facts contained in this presentation,
including, without limitation, those regarding our intentions, beliefs or
current expectations concerning, among other things: our future financial
conditions and performance, results of operations and liquidity; our strategy,
plans, objectives, prospects, growth, goals and targets; and future developments
in the markets in which we participate or are seeking to participate. These
forward-looking statements can be identified by the use of forward-looking
terminology, including the terms "believe", "could", "estimate", "expect",
"forecast", "intend", "may", "plan", "project" or "will" or, in each case, their
negative, or other variations or comparable terminology. Where, in any forward-
looking statement, we express an expectation or belief as to future results or
events, such expectation or belief is expressed in good faith and believed to
have a reasonable basis, but there can be no assurance that the expectation or
belief will result or be achieved or accomplished. To the extent that statements
in this press release are not recitations of historical fact, such statements
constitute forward-looking statements, which, by definition, involve risks and
uncertainties that could cause actual results to differ materially from those
expressed or implied by such statements.
FINANCIAL MEASURES
In this press release, we present certain non-GAAP measures, including EBITDA.
We define "EBITDA" as profit before net financing income, taxes on income,
depreciation and amortization, expenses in respect of options, expenses (income)
derived from, net and network set up expenses. EBITDA and similar measures are
used by different companies for differing purposes and are often calculated in
ways that reflect the circumstances of those companies. You should exercise
caution in comparing EBITDA as reported by us to EBITDA of other companies.
EBITDA as presented herein differs from the definition of "Consolidated Combined
EBITDA" contained in the indentures governing the Senior Secured Notes and the
Senior Notes or for purposes of any other indebtedness of an Altice Issuer. The
information presented as EBITDA is unaudited and has not been prepared in
accordance with IFRS or any other accounting standards. In addition, the
presentation of these measures is not intended to and does not comply with the
reporting requirements of the U.S. Securities and Exchange Commission (the
"SEC") and will not be subject to review by the SEC; compliance with its
requirements would require us to make changes to the presentation of this
information.
EBITDA is not a measurement of performance under IFRS and you should not
consider EBITDA as an alternative to net income or operating profit or other
performance measures determined in accordance with IFRS or to cash flows from
operations, investing activities or financing activities. EBITDA has limitations
as an analytical tool, and you should not consider it in isolation.
Altice / HOT Group First quarter 2013 results:
http://hugin.info/156399/R/1701563/561888.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Altice SA via Thomson Reuters ONE
[HUG#1701563]
Unternehmensinformation / Kurzprofil:
Datum: 14.05.2013 - 19:00 Uhr
Sprache: Deutsch
News-ID 259928
Anzahl Zeichen: 56068
contact information:
Town:
Luxembourg
Kategorie:
Business News
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"Altice SA: Altice / HOT Group First quarter 2013 results"
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Altice SA (Nachricht senden)
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