Iliad (Free) 3Q 2008 Revenues

Thursday, November 6th, 2008
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The 3rd quarter 2008 was marked by a record level of net adds under the Free brand and by the integration of Alice France operations within the Iliad Group. At 30 September 2008, the Iliad Group (Paris: ILD) had 4,125,000 ADSL subscribers, 3,275,000 of which under the Free brand and 850,000 under the Alice brand. The acquisition of Alice enabled the Group to meet its objective of 4 million subscribers two years in advance.

The Group’s consolidated revenues for the 3rd quarter 2008 totalled € 399.6 million, a 30.2% increase compared to the 3rd quarter 2007. For the first time, the Group’s consolidated revenues include the acquisition of Alice France (LSG Group), carried out on 26 August 2008. The contribution of Alice France operations to consolidated 3rd quarter revenues corresponds to one month and 5 days of operations. Excluding the Alice France acquisition, 3rd quarter 2008 revenues growth was 17%.

With 141,000 recruitments, net of churn and a 32.4% market share of net adds, the 3rd quarter was the best-performing quarter of 2008. Free’s ADSL subscriber base thus increased from 3,134,000 at 30 June 2008 to 3,275,000 at 30 September 2008.

The average revenue per Free Broadband subscriber in 3rd quarter 2008 was € 36.4, up € 1.10 from 3rd quarter 2007. This increase was largely due to the growth in value-added services. As regards Free subscribers, value-added services posted growth of 38.3% compared to 3rd quarter 2007, with revenues of € 256.9 million to 30 September 2008, compared to € 185.8 million in 2007.

Free confirmed the soundness of its marketing dynamics, based on innovation and quality of service:

  • Extension of the free of charge Local Technical Support to cover a total of 70 towns and cities (August 2008).
  • Launch of the Multi-TV service, which allows subscribers equipped with the Freebox v5 to access audio-visual services on several TV screens within their household (September 2008)
  • Free was awarded a prize for its Technical Support at the 2008 Technical Mystery Contact Challenge (TMCC) on the ISP panel. Free was also awarded a prize as n°2 of ISP in the benchmark « Élu Service Client de l’Année 2009

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