Altice SFR France - comment

Orange reported its H1 numbers highlighting the cost issues operators have in France. Orange’s France EBITDAaL is down 5% mainly due to energy prices and the price increases only coming into effect in May. In H2, Orange is guiding that EBITDAaL to reduce, but the magnitude of the decline versus the prior year will be less (2-3%) than H1. Orange also pointed to further aggressive mobile offers in the French market showing competition is not easing in the current cost environment. 

We will likely have these sentiments reiterated on the Bouygues call on Friday, (higher costs & intense competition) reiterating there is no easy path for Altice France to raise EBITDA in the coming quarters.