Telecom group Iliad’s core profit rises on strong France and Italy sales

Telecom group Iliad’s core profit rises on strong France and Italy sales

A guest speaks on a mobile phone as she arrives for the French telecoms operator Iliad’s media conference in Milan, Italy, May 29, 2018. REUTERS/Stefano Rellandini/File Photo Acquire Licensing Rights

Nov 14 (Reuters) – French Telecom provider Iliad reported a 5.1% rise in its nine-month core profit on Tuesday driven by strong subscription growth in France and Italy.

The unlisted company posted earnings before interest, taxes, depreciation and amortisation and after leases (EBITDAal), a key metric for telecom groups, of 2.55 billion euros ($2.73 billion) in the January-September period, up from 2.42 billion last year.

Free, Iliad’s brand in France, racked up 324,000 new subscribers during the third quarter, which it called “a record sales performance”. In Italy, the group gained 382,000 new subscribers, its best performance in three years.

“These very good results were achieved thanks to our choices in terms of investment and defending our subscribers’ purchasing power,” Iliad CEO Thomas Reynaud said in a statement.

Most European telecommunications operators have raised prices of their products to limit the impact of inflation on costs and subscriber growth.

Iliad, on the other hand, earlier this year set a five-year price cap on its two base plans, but was criticized for increasing the price of add-ons.

Iliad’s results reflect a trend amongst its main French competitors, with Orange (ORAN.PA), Bouygues Telecom (BOUY.PA) and SFR all reporting slight profit growth year-on-year.

($1 = 0.9348 euros)

Reporting by Victor Goury-Laffont in Gdansk; editing by Milla Nissi

Our Standards: The Thomson Reuters Trust Principles.

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