Altice International - comment

Altice don’t release the full accounts prior to their call, but the headline numbers remain strong.  Altice Portugal has increased the number of homes passed and penetration, driving revenue up 12%, split residential up 4% and business services up 19%.  EBITDA increased by 10% but margin compressed due to low-margin equipment sales.  The Israeli and Dominican Republic businesses grew, but at a more modest rate, on a constant currency basis.  Reported figures show a decline due to the strengthening Euro.  The Teads business also showed some modest improvement.  Leverage remains at 4.7x on an LTM basis.  Another point to note is the Altice UK Investment (Loan of €581m) remains fully covered.

Separately, Patrick Drahi, and management team will host investor meetings in London and New York in September.  There is very limited additional information concerning the ongoing investigation in Portugal, with Altice reiterating that Altice Portugal, their main subsidiary, is allegedly a victim of the misconduct and corruption.  Altice International will provide any material updates as appropriate and permissible in due course.