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November 21, 2023
ALTICE INTERNATIONAL
Q3 2023 RESULTS
Altice International S.à r.l. (“Altice International”) today announces financial and operating results for
the quarter ended September 30, 2023.
Q3 2023 Key Highlights
Total revenue declined by -0.6% YoY in Q3 2023 on a reported basis (CC +5.0%).
Total EBITDA grew by +3.8% YoY in Q3 2023 on a reported basis (CC +10.0%).
Total accrued Capex was €205 million in Q3 2023.
Operating free cash flow amounted to €271 million in Q3 2023.
FY 2023 narrowed guidance reiterated
FY 2023: revenue, EBITDA and operating free cash flow growth YoY.
FY 2023 EBITDA and operating free cash flow are expected to grow broadly in line with H1 2023
performance of +7% growth YoY for EBITDA and +13% YoY for operating free cash flow on a CC
basis. This guidance includes impacts from the war in Israel.
Mid-term guidance reiterated
Mid-term: absolute operating free cash flow in excess of €1 billion, underpinned mainly by
EBITDA growth.
Target leverage of 4.0x to 4.5x net debt to EBITDA.
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Capital Structure Key Highlights – including subsequent events
Total pro forma
1
net debt was €8.7 billion at the end of Q3 2023 (actual net debt was €8.6 billion).
On October 30, 2023, Altice Financing S.A. successfully raised a new €800 million Term Loan
following excess demand. This transaction is in line with Altice International’s liability
management efforts to optimize its capital structure. Following this transaction, Altice
International has no major maturities before 2027. The average maturity for the Altice
International debt capital structure as of Q3 2023, pro forma for this transaction, increases to 4.6
years. The new Term Loan, due October 2027, is priced at 5.00% over EURIBOR with an OID of
96. Proceeds will be used to redeem, defease or otherwise discharge the outstanding €600
million 2.25% Senior Secured Notes maturing in 2025 in full, with excess proceeds going to repay
RCF.
On October 7, 2023, the State of Israel suffered a surprise attack, which led to the declaration of
the ‘Iron Swords’ War (the “War”). The War is on-going as of the issuance date of this press
release. As a consequence of the situation, Altice International’s operations in Israel (HOT) are
impacted. More specifically, HOT is affected by a reduction of revenue in the fixed segment
(subscription fees have been frozen for the evicted Israeli population in the South and in the
North of the country) and in the mobile segment (reduced equipment sales due to closing of
shops, prepaid revenues and roaming as less customers are travelling abroad and less visitors are
coming to Israel) as well as business services revenue related to the construction of the fibre
network for IBC (many local authorities currently prohibit construction). The evolution of the
situation is uncertain and closely followed. Based on its current assessment, Altice International
expects a negative effect on its results of operations in Israel in the fourth quarter of 2023 due
to the War, the extent of which cannot be quantified at this stage.
On April 24, 2018, the European Commission imposed two fines on Altice Europe for a total
amount of €124.5 million for gun jumping in connection with the acquisition of PT Portugal in
2015. On July 5, 2018, Altice Europe introduced proceedings against the European Commission’s
decision before the EU General Court. On September 22, 2021, the General Court issued its
judgment and reduced the amount of one of the two fines by €6.2 million. On December 2, 2021,
Altice Europe filed an appeal against this judgment before the Court of Justice of the European
Union. On November 9, 2023, the Court of Justice further reduced the amount of one of the two
fines by €3.2 million. The total amount due by Altice Group Lux S.à r.l. (as successor to Altice
Europe), including interest, is €124.1 million.
In mid July of this year, Altice Portugal – a subsidiary of Altice International – learned that the
Public Prosecutor’s Office in Portugal was investigating allegations of harmful practices and
misconduct of certain individuals and entities affecting Altice Portugal and its subsidiaries. At
that time, Altice International took immediate remedial actions, including enhancing internal
control procedures and controls, strengthening the oversight of procurement processes and
suspending certain employees that had potential connections to the misconduct under
investigation. Moreover, Altice International immediately undertook to transition away from all
suppliers potentially implicated in the Portuguese authorities’ investigation. In parallel, an
internal investigation in Portugal and across other jurisdictions under the direction of a global
investigation committee was launched to perform a thorough risk assessment in key
jurisdictions. The investigative work initially scoped has now been substantially completed and
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Total Altice International net debt is pro forma for the October 2023 loan raise (the raise at Altice Financing S.A. of €800 million of Term Loan due
October 2027, the redemption, defeasance or otherwise discharge of the outstanding €600 million 2.25% 2025 Senior Secured Notes, the repayment
of RCF of €200 million and the effect of OID and transaction fees).
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no material impact is expected on Altice International’s financial statements. Although there
were already robust control mechanisms in place, Altice International has proactively initiated
actions to enhance and strengthen several internal control processes, policies and procedures to
effectively prevent, detect and mitigate the risk of any future potential individual misconduct
and has appointed external advisors to support it in the implementation of such actions.
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Altice International Q3 2023 Results Call for Debt Investors
Altice International is hosting a call for existing and prospective debt investors on Tuesday, November
21, 2023 at 14:00 CET (13:00 GMT, 08:00 EST), to discuss its Q3 2023 results.
Dial-in Details:
UK: +442034814247
USA: +16463071963
France: +33173023136
Conference ID: 27358
A live webcast of the presentation will be available on the following website:
https://events.q4inc.com/earnings/ALVVF/Altice-International-Q3-2023-Results-Call-Invitation-for-Debt-
Investors
Contacts
Head of Investor Relations
Sam Wood
sam.wood@altice.net
Head of Communications
Arthur Dreyfuss
arthur.drey[email protected]
About Altice International
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Altice International is a convergent leader in telecoms, content, media, entertainment and advertising,
and operates in Portugal, Israel and the Dominican Republic. Altice International also has a global
presence through its online advertising business Teads.
Financial Presentation
This press release contains measures and ratios (the “Non-GAAP measures”), including Adjusted EBITDA,
Capital expenditure (“Capex”), Operating free cash flow, and net debt that are not required by, or
presented in accordance with, IFRS or any other generally accepted accounting standards. We present
Non-GAAP measures because we believe that they are of interest to the investors and similar measures
are widely used by certain investors, securities analysts and other interested parties as supplemental
measures of performance and liquidity. The Non-GAAP measures may not be comparable to similarly
titled measures of other companies or have limitations as analytical tools and should not be considered
in isolation or as a substitute for analysis of our, or any of our subsidiaries’, operating results as reported
under IFRS or other generally accepted accounting standards. Non-GAAP measures such as Adjusted
EBITDA are not measurements of our, or any of our subsidiaries’, performance or liquidity under IFRS or
any other generally accepted accounting principles, including U.S. GAAP. In particular, you should not
consider Adjusted EBITDA as an alternative to (a) operating profit or profit for the period (as determined
in accordance with IFRS) as a measure of our, or any of our operating entities’, operating performance,
(b) cash flows from operating, investing and financing activities as a measure of our, or any of our
subsidiaries’, ability to meet its cash needs or (c) any other measures of performance under IFRS or other
generally accepted accounting standards. In addition, these measures may also be defined and calculated
differently than the corresponding or similar terms under the terms governing our existing debt.
Adjusted EBITDA is defined as operating profit before depreciation, amortization and impairment, other
expenses and income (capital gains, non-recurring litigation, restructuring costs), share-based expenses
and after operating lease expenses (i.e., straight-line recognition of the rent expense over the lease term
as performed under IAS 17 Leases for operating leases). This may not be comparable to similarly titled
measures used by other entities. Further, this measure should not be considered as an alternative for
operating income as the effects of depreciation, amortization and impairment excluded from this measure
do ultimately affect the operating results, which is also presented within the annual consolidated financial
statements in accordance with IAS 1 - Presentation of Financial Statements. All references to EBITDA in
this press release are to Adjusted EBITDA, as defined in this paragraph.
Capital expenditure (Capex), while measured in accordance with IFRS principles is not a term that is
defined in IFRS. However, management believes it is an important indicator as the profile varies greatly
between activities:
The fixed business has fixed Capex requirements that are mainly discretionary (network, platforms,
general), and variable Capex requirements related to the connection of new customers and the
purchase of Customer Premise Equipment (TV decoder, modem, etc.).
Mobile Capex is mainly driven by investment in new mobile sites, upgrade to new mobile technology
and licenses to operate; once engaged and operational, there are limited further Capex requirements.
Other Capex: mainly related to costs incurred in acquiring content rights.
Operating free cash flow (OpFCF) is defined as Adjusted EBITDA less accrued Capex. This may not be
comparable to similarly titled measures used by other entities. Further, this measure should not be
considered as an alternative for operating cash flow as presented in the consolidated statement of cash
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flows in accordance with IAS 1 - Presentation of Financial Statements. It is simply a calculation of the two
above mentioned non-GAAP measures.
Adjusted EBITDA and similar measures are used by different companies for differing purposes and are
often calculated in ways that reflect the circumstances of those companies. You should exercise caution
in comparing Adjusted EBITDA as reported by us to Adjusted EBITDA of other companies. Adjusted EBITDA
as presented herein differs from the definition of “Consolidated Adjusted EBITDA” for purposes of any of
the indebtedness of Altice International. The financial information presented in this press release,
including but not limited to, the quarterly financial information, pro forma financial information as well
as Adjusted EBITDA and OpFCF, is unaudited.
Net debt is a non-GAAP measure which is useful to the readers of this press release as it provides
meaningful information regarding the financial position of the Group and its ability to pay its financial
debt obligations compared to its liquid assets.
Financial and Statistical Information and Comparisons
Financial and statistical information is for the quarter ended September 30, 2023, unless otherwise stated,
and any year over year comparisons are for the quarter ended September 30, 2022.
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Altice International Summary Financial Information (1/2)
Quarters ended September 30, 2023 and September 30, 2022
Q3-22 Q3-23 Q3-23 YoY
In € million (Reported) (CC)
Portugal 680
742 +9.1% +9.1%
Israel 312
267 -14.5% +1.7%
Dominican Republic 160
147 -8.0% +3.3%
Teads 149
136 -8.7% -5.9%
Eliminations & other -6
-5 n.m. n.m.
Total revenue 1,296 1,288
-0.6%
+5.0%
Portugal
234 281 +20.3% +20.3%
Israel
108 87 -19.9% -4.6%
Dominican Republic
82 78 -4.4% +7.3%
Teads
37 31 -15.3% -9.7%
Eliminations & other
-2 -1 n.m. n.m.
Total EBITDA
458 476 +3.8% +10.0%
Portugal
114 110 -3.7% -3.7%
Israel
83 70 -15.5% +0.3%
Dominican Republic
37 23 -37.8% -27.3%
Teads
1 3 n.m. n.m.
Eliminations & other
-2 -1 n.m. n.m.
Total accrued Capex
233 205 -12.2% -4.9%
Portugal
119 171 +43.2% +43.2%
Israel
26 17 -34.1% -20.5%
Dominican Republic
45 55 +23.5% +36.2%
Teads
35 28 -21.0% -15.1%
Eliminations & other
- - n.m. n.m.
EBITDA - accrued Capex
225 271 +20.5% +25.5%
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Altice International Summary Financial Information (2/2)
Quarter ended September 30, 2023
In € million Portugal Israel
Dominican
Republic Teads
Eliminations
& other
Altice
International
Fixed 180 125 27 - - 333
Mobile
129 57 84 - - 270
Residential service
309 182 112 -
-
603
Equipment
32 20 9 -
-
61
Total residential
341 202 121 -
-
664
Business services
401 65 27 - -5 488
Telecom
742 267 147 - -5 1,152
Media - - - 136 - 136
Total revenue
742 267 147 136 -5 1,288
Total EBITDA
281 87 78 31 -1 476
Margin
37.9% 32.4% 53.2% 22.8% - 36.9%
Total accrued Capex
110 70 23 3 -1 205
EBITDA - accrued Capex
171 17 55 28 - 271
Quarter ended September 30, 2022
In € million Portugal Israel
Dominican
Republic Teads
Eliminations
& other
Altice
International
Fixed 173 150 31 - - 354
Mobile
124 68 91 -
-
283
Residential service
297 217 122 -
-
636
Equipment
33 28 10 -
-
71
Total residential
330 245 132 -
-
707
Business services
350 67 28 -
-6
440
Telecom
680 312 160 -
-6
1,147
Media - - - 149 - 149
Total revenue
680
312 160 149
-6
1,296
Total EBITDA
234 108 82 37 -2 458
Margin
34.3% 34.6% 51.2% 24.6% - 35.4%
Total accrued Capex
114 83 37 1 -2 233
EBITDA - accrued Capex
119 26 45 35 - 225
Note to Summary Financial Information table
(1) Accrued Capex in Q3 2023 for Israel excludes accruals related to the acquisition of an additional tranche of the indefeasible
right of use (“IRU”) signed with IBC for an amount of €17.6 million
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Key Performance Indicators
Quarter ended September 30, 2023
000’s unless stated otherwise Portugal Israel
Dominican
Republic
Altice
International
Fibre homes passed
6,311 2,263 1,024 9,599
Fibre unique B2C customers
1,423 1,028 226 2,677
Total fixed B2C unique customers
1,678 1,028 362 3,068
Postpaid B2C subscribers
2,982 1,288 680 4,951
Prepaid B2C subscribers
2,929 249 2,537 5,715
Total mobile B2C subscribers
5,911 1,537 3,218 10,666
Notes to Key Performance Indicators table
(1) Portugal fibre homes passed figures include homes where MEO has access through wholesale fibre operators (0.5 million in
Q3 2023)
(2) Fibre unique customers represent the number of individual end users who have subscribed for one or more of our fibre /
cable-based services (including pay television, broadband or telephony), without regard to how many services to which the
end user subscribed. It is calculated on a unique premise basis. For Israel, it refers to the total number of unique customer
relationships, including both B2C and B2B. For the Dominican Republic, it includes B2C HFC and FTTH customers
(3) Mobile subscribers are equal to the net number of lines or SIM cards that have been activated on the Group’s mobile networks
and exclude M2M
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Financial and Operational Review
For the quarter ended September 30, 2023, compared to the quarter ended September 30, 2022
Portugal (MEO)
Altice Portugal delivered revenue growth across all segments in Q3 2023, as well as EBITDA growth and
operating free cash flow growth YoY.
Altice Portugal had 6.3 million addressable FTTH homes passed in total at the end of Q3 2023 (vs. 6.2
million at the end of Q3 2022), including 5.7 million homes passed owned by FastFiber (vs. 5.5 million at
the end of Q3 2022). The FTTH penetration of the B2C fixed customer base was 85% at the end of Q3
2023.
At the end of Q3 2023, 4G population coverage was 99.9% and 5G population coverage was 95.6%.
Increased coverage compared to the prior periods was supported by ongoing mobile network investment,
densifying the network coverage. The roll-out of 5G technology will support Altice Portugal’s strategy,
connecting people with the best available technology.
During Q3 2023, Altice Portugal continued actions to promote network simplification, including the work
of identification, shutdown, removal, and re-routing of obsolete network equipment. These actions are
supporting a reduction in energy consumption.
In July 2023, MEO was ranked first among telecommunications operators nationwide according to
OnStrategy's
1
(a multidisciplinary consulting firm focusing on brand value) most recent study on the 100
Most Valuable Portuguese Brands of 2023. In addition, MEO was awarded “Brand of the Year”, being one
of the most recognized brands at the Portuguese Association of Marketing Professionals
2
- Marketing
Awards 2023 ceremony.
In September 2023, MEO launched a symmetrical 10 Gbps internet offer for the consumer and business
segments. This pioneering hyper-speed internet solution, via optical fibre, is 10 times faster than existing
speeds available in the market.
Total Altice Portugal revenue grew by +9.1% YoY in Q3 2023 to €742 million.
o Total residential service revenue growth was +4.1% YoY in Q3 2023, supported by ongoing
low levels of churn and sustained net additions within the residential customer base. Digital
channel activity continued to grow, with increased MEO website visitors YoY, higher MyMEO
mobile app downloads YoY and growth in online sales of equipment (smartphones, smart
TVs) YoY in Q3 2023.
o Business services revenue grew by +14.4% YoY in Q3 2023, which was partly driven by the
contribution of Geodesia in Q3 2023 and another positive contribution of Altice Labs in Q3
2023.
Total EBITDA increased by +20.3% YoY to €281 million.
Total accrued Capex amounted to €110 million in Q3 2023.
1
https://www.onstrategy.com.pt/pt/relatorios/brand-value/56/
2
https://appm.pt/marketing-awards/?doing_wp_cron=1698053449.7327120304107666015625
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Israel (HOT)
HOT delivered revenue growth in Q3 2023 on a CC basis.
In the third quarter of 2023, HOT continued to focus on deployment of fibre for IBC, which began at the
end of Q2 2021. At the end of Q3 2023, IBC had homes passed of 1,412k (+120k in Q3 2023, +104k in Q2
2023, +91k in Q1 2023, +106k in Q4 2022, +91k in Q3 2022, +89k in Q2 2022), with HOT contributing to
the majority of the construction in the quarter. HOT continued to grow its FTTH subscriber base
throughout the third quarter of 2023. IBC is in the process of upgrading the fibre network to XGS-PON.
This technology is based on symmetrical 10G capabilities per port and allows HOT to offer up to 5Gbps
packages.
HOT continued with the deployment of 5G sites in Q3 2023, achieving 65% population coverage. The
number of subscribers already taking 5G offers continued to grow. Following the tender launched in
December 2022 by the Ministry of Communication for 25 100Mhz bands in the 26Gh frequency range
(Millimetric waves), HOT Mobile, through PHI, won four 100Mhz bands in July 2023, for which HOT’s share
in the costs is less than €0.5 million. This allows HOT Mobile to expand public networks and capacity.
On October 7, 2023, the State of Israel suffered a surprise attack, which led to the declaration of the ‘Iron
Swords’ War. As a consequence of the situation, HOT’s operations are impacted. More specifically, HOT
is affected by a reduction of revenue in the fixed segment and in the mobile segment as well as business
services revenue related to the construction of the fibre network for IBC.
HOT total revenue grew by +1.7% YoY in Q3 2023 on a CC basis, or declined by -14.5% YoY on a
reported basis as a result of the depreciation of the Israeli Shekel compared to the Euro, to €267
million:
o Residential service declined by -0.2% YoY in Q3 2023 on a CC basis, or
-16.1% YoY on a reported basis. Mobile service revenue grew by +0.8% on a CC basis,
supported by subscriber base and ARPU growth, which was offset by fixed service revenue
decline of -0.6% on a CC basis driven by ongoing competition in the fixed market. Equipment
revenue declined by -14.3% YoY on a CC basis, resulting in a total residential revenue decline
of -1.8% YoY in Q3 2023 on a CC basis, or -17.5% YoY on a reported basis.
o Business services revenue grew by +14.1% YoY in Q3 2023 on a CC basis, or declined by
-3.7% YoY on a reported basis.
EBITDA declined by -4.6% YoY in Q3 2023 on a CC basis, or -19.9% YoY on a reported basis, to €87
million.
Total accrued Capex was €70 million in Q3 2023, excluding the indefeasible right of use (“IRU”)
in the quarter, related to the IBC fibre network.
Dominican Republic (Altice Dominicana)
In Q3 2023, Altice Dominicana grew revenue, EBITDA and operating free cash flow on a CC basis.
The company continues to strengthen its presence and customer base. In Q3 2023, Altice Dominicana
continued to deploy its FTTH product offering of download speeds up to 1Gbps. This network upgrade
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commenced in 2022 in the south of the country and now covers the provinces of San Juan de la Maguana,
Barahona, Azua, San Cristobal and Bani.
In July 2023, Altice Dominicana has been rated by Revista Mercado
1
as “one of the best companies to
work for in the Dominican Republic”. According to Revista Mercado, Altice Dominicana serves as a
national role model when it comes to organizational culture and the work environment.
In August 2023, Altice Dominicana ranks among the top companies with the best corporate reputation
nationwide and is one of the top ten companies in terms of ESG criteria according to Merco
2
(corporate
reputation business monitor in the Dominican Republic).
Total revenue in the Dominican Republic grew by +3.3% YoY in Q3 2023 on a CC basis, or declined
by -8.0% YoY on a reported basis, as a result of the depreciation of the Dominican Peso compared
to the Euro, to €147 million.
o Residential service revenue grew by +3.0% YoY in Q3 2023 on a CC basis, or declined by
-8.3% YoY on a reported basis. The growth on a CC basis was supported by a growing total
customer base in fibre and mobile post-paid.
o Business services revenue grew by +7.0% YoY in Q3 2023 on a CC basis, or declined by -4.6%
YoY on a reported basis.
Total EBITDA grew by +7.3% YoY in Q3 2023 on a CC basis, or declined by -4.4% YoY on a reported
basis, to €78 million. The EBITDA margin in Q3 2023 was 53.2% on a reported basis.
Total accrued Capex was €23 million in Q3 2023.
Teads
In Q3 2023, Teads continued to invest in the business to drive long term product diversification and
growth.
Ongoing macroeconomic pressures have impacted ad spend especially in key markets like the UK
and industries such as entertainment which was impacted by the writers’ strike. Teads revenue
declined by -8.7% YoY in Q3 2023 on a reported basis, to €136 million (-5.9% on a CC basis). On
a regional basis, North America and Latin America weighed on results. Teads continues to invest
significantly in current products and new product initiatives that target large addressable
markets within digital advertising which will help drive future growth. As an example, in July
2023, Teads announced the global availability of “Brandformance”, re-defining its mid funnel
performance offering, which is focused on maximizing clicks for clients.
Teads reported EBITDA of €31 million in Q3 2023, representing an EBITDA margin of 23%.
1
https://www.elcaribe.com.do/gente/sociales/altice-dominicana-entre-las-10-mejores-empresas-para-trabajar-segun-ranking-de-revista-mercado/
2
https://www.merco.info/do/
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Altice International Net Debt as of September 30, 2023
Altice International has a robust, diversified and long-term capital structure:
o Weighted average debt maturity of 4.6 years;
o WACD of 5.7%;
o 79% of debt at fixed interest rate;
o No major maturities until 2027;
o Available liquidity of €0.7 billion
1
.
Total pro forma
2
net debt was €8.7 billion at the end of Q3 2023 (actual net debt was €8.6
billion).
Amount in
millions
(local currency)
Actual
(€m)
Pro Forma
(€m)
Coupon /
Margin
Maturity
Senior Secured Notes
EUR 600
600
-
2.250%
2025
Senior Secured Notes
EUR 1,100
1,100
1,100
3.000%
2028
Senior Secured Notes
USD 1,200
1,134
1,134
5.000%
2028
Senior Secured Notes
EUR 805
805
805
4.250%
2029
Senior Secured Notes
USD 2,050
1,938
1,938
5.750%
2029
Term Loan
USD 187
177
177
L+2.75%
2025
Term Loan
USD 132
125
125
L+2.75%
2026
Term Loan
EUR 49
49
49
E+2.75%
2026
Term Loan
EUR 448
448
448
E+5.00%
2027
Term Loan
USD 1,592
1,505
1,505
S+5.00%
2027
Term Loan
EUR 800
-
800
E+5.00%
2027
Drawn RCF
-
361
1
61
E+3.00%
2027
Finance lease liabilities and other debt
-
45
45
-
-
Swap Adjustment
-
-
20
-
20
-
-
Secured Debt
8,266
8,266
Senior Notes
EUR 675
675
675
4.750%
2028
Gross Debt
8,941
8,941
Total cash and restricted cash
-
32
8
-
29
0
Net Debt
8,61
4
8,6
5
2
Undrawn RCF
4
1
8
WACD
5.
7
%
1
€0.7 billion liquidity includes €0.4 billion of undrawn revolvers and €0.3 billion of cash. The cash position as show is pro forma for the October 2023
loan raise (the raise at Altice Financing S.A. of €800 million of Term Loan due October 2027, the redemption, defeasance or otherwise discharge of the
outstanding €600 million 2.25% 2025 Senior Secured Notes, the repayment of RCF of €200 million and the effect of OID and transaction fees) and
includes restricted cash for an amount of €41 million
2
Total Altice International net debt is pro forma for the October 2023 loan raise (the raise at Altice Financing S.A. of €800 million of Term Loan due
October 2027, the redemption, defeasance or otherwise discharge of the outstanding €600 million 2.25% 2025 Senior Secured Notes, the repayment
of RCF of €200 million and the effect of OID and transaction fees)
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Altice International Reconciliation to Swap Adjusted Debt
As of September 30, 2023, in € million
Actual
Pro forma
1
Total Debenture and Loans from Financial Institutions 8,846 8,846
Value of Debenture and Loans from Financial Institutions in Foreign Currency converted at closing FX rate -6,758 -6,758
Value of Debenture and Loans from Financial Institutions in Foreign Currency converted at hedged rate 6,738 6,738
Transaction Costs 71 71
Total Swap Adjusted Value of Debenture and Loans from Financial Institutions 8,897 8,897
Finance lease liabilities and other debt 45 45
Pro forma Term Loan Raise October 2023 – loan raised - 800
Pro forma Term Loan Raise October 2023 – cash collateralized - -600
Pro forma Term Loan Raise October 2023 – repaid RCF - -200
Gross Debt Consolidated 8,941 8,941
Cash and restricted cash -328 -290
Net Debt Consolidated 8,614 8,652
Altice International Leverage Reconciliation
A
s of
September
3
0
, 202
3
, in
€ million
Actual Pro forma
1
Gross Debt Consolidated 8,941 8,941
Cash and restricted cash -328 -290
Net Debt Consolidated 8,614 8,652
LTM EBITDA Consolidated 1,852 1,852
Net Leverage 4.6x 4.7x
L2QA EBITDA Consolidated 1,864 1,864
Net Leverage 4.6x 4.6x
1
Total Altice International net debt is pro forma for the October 2023 loan raise (the raise at Altice Financing S.A. of €800 million of Term Loan due
October 2027, the redemption, defeasance or otherwise discharge of the outstanding €600 million 2.25% 2025 Senior Secured Notes, the repayment
of RCF of €200 million and the effect of OID and transaction fees)
15
Altice International Non-GAAP Reconciliation to unaudited GAAP measures
In € million
Q1-23
Q2-23
Q3-23
Revenue - Financial Statements 1,234 1,277 1,288
Purchasing and subcontracting costs -333 -341 -331
Other operating expenses -245 -255 -258
Staff costs and employee benefits -184 -183 -182
Total 472 498 517
Rental expense operating lease -41 -42 -42
Adjusted EBITDA 430 456 476
Depreciation, amortisation and impairment -282 -287 -286
Other expenses and income -2 -235 -10
Rental expense operating lease 41 42 42
Operating profit 188 -23 222
Capital expenditure (Accrued) - Financial Statements 283 231 223
IRU (Israel, HOT) -53 -15 -18
Capital expenditure (Accrued) - Investor Presentation 230 215 205
Operating free cash flow (OpFCF) - Investor Presentation 200 241 271
16
FORWARD-LOOKING STATEMENTS
Certain statements in this press release constitute forward-looking statements. These forward-looking
statements include, but are not limited to, all statements other than statements of historical facts
contained in this press release, including, without limitation, those regarding our intentions, beliefs or
current expectations concerning, among other things: our future financial conditions and performance,
results of operations and liquidity; our strategy, plans, objectives, prospects, growth, goals and targets;
and future developments in the markets in which we participate or are seeking to participate. These
forward-looking statements can be identified by the use of forward-looking terminology, including the
terms “believe”, “could”, “estimate”, “expect”, “forecast”, “intend”, “may”, “plan”, “project” or “will” or,
in each case, their negative, or other variations or comparable terminology. Where, in any forward-looking
statement, we express an expectation or belief as to future results or events, such expectation or belief
is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the
expectation or belief will be achieved or accomplished. To the extent that statements in this press release
are not recitations of historical fact, such statements constitute forward-looking statements, which, by
definition, involve risks and uncertainties that could cause actual results to differ materially from those
expressed or implied by such statements, including risks referred to in our annual and quarterly reports.
