Altice SFR - comment

While most of us try to imagine the future capital structure and which creditor class will take a haircut (answer all!), the underlying business continues to deteriorate at SFR.  Residential mobile services continued their decline due to net losses in subscribers over the last 6 months.  In addition, business service revenue also declined, driven by lower construction activity.  This translated into lower EBITDA numbers, which was compounded by higher staff costs and increases in the FTTH lease costs. 

Interestingly, in the MD&A released last night, the Company felt obliged to state that although they believe their cash balances, RCF and cash flow from operations will be sufficient for the next 12 months, no assurance can be given that this will be the case.  

There was no Q&A held during the results call yesterday, with the Company opting to leave doubt and ambiguity in the market.