Altice SFR - comment

Altice France released its Q1 2023 numbers yesterday, weaker than market expectations. We will update our model in the next couple of days, but although there was weakness in Q1, we remain confident for a stable EBITDA in FY23. The medium-term story for Altice France remains the same, with CAPEX reducing in FY24 and FY25 increasing the deleveraging story. Additionally, cash out to fund Altice TV will reduce over FY23 and will be self-funding from FY24 onwards. 2024 is the real inflection point for Altice France, despite static/modest increase in Revenue and EBITDA, cashflow will improve on the back of lower CAPEX, lower cash restructuring costs and no longer funding Altice TV.

We don’t see any refinancing for Altice France in FY23, and they are likely to wait until FY24 before dealing with upcoming maturities.