IN 2019, THE TDF GROUP INVESTS AND CONTINUES TO ROLL OUT ITS TELECOM AND FIBER INFRASTRUCTURE
TDF IS MOBILIZED IN THE FACE OF COVID-19
In the current context of the COVID-19 pandemic, TDF is implementing exceptional measures whose primary objective is to protect its employees. For its audiovisual broadcasting and telecommunications activities, which are essential services for its customers and the entire population, TDF is doing everything possible to ensure continuity of service, and is reinforcing the security of its operations. Deployment of new infrastructure is being pursued wherever possible. Even if all the consequences of the pandemic cannot be precisely assessed at this stage, TDF's activities are resilient in nature.
In 2019, TDF reports:
- Sales of 654.8 million euros, up +3.2% thanks to telecom and fiber infrastructure deployments
- Capital expenditure up +20.2% to 305.9 million euros, or 46.7% of sales.
- Increased industrial capacity, with 84,000 FttH outlets built and 307 new telecom towers erected in 2019
- EBITDA of €367.8 million, up +6.2
The figures in this press release do not take into account the new IFRS16 standard and the proforma results of the subsidiaries Mediamobile, Bebanjo and Cognacq-Jay Image, which have been sold. Detailed figures in appendix.
The Group's 2019 results confirm the massive investment strategy pursued in recent years. This strategy of organic investment and industrial deployment has resulted in growth in fixed and mobile ultra-broadband infrastructures. It is set to continue.
In telecoms infrastructure, the Group continues to build towers to accelerate mobile coverage.
The acceleration of its tower construction program and the marketing of its existing infrastructure, in particular in response to the Mobile New Deal agreement signed in 2018 between the Government, Arcep and the four main telephone operators, are enabling the Group to post growing results.
In 2019, 307 mobile telecommunications masts were lifted, bringing the total to over 800 since the mast-building program was launched in 2016. The target of 1,000 pylons lifted is on track to be reached in 2020.
The number of points of presence grew by +1.5% (+5.1% proforma for the ran sharing agreement between Bouygues Télécom and SFR), thanks in particular to TDF's tower construction program.
On-site hosting services (hosting operators on TDF Group sites) posted organic growth of +6.9%.
Fiber deployment is well underway.
In 2019, the milestone of 100,000 sockets built was passed, in 164 communes, including 84,000 in 2019. With 250,000 sockets currently built or under construction (i.e. a third of the 750,000 sockets to be built in the four territories it has won, Val d'Oise, Yvelines, Loir-et-Cher/Indre-et-Loire and Maine-et-Loire), the TDF Group is confirming its credibility and industrial expertise in this new market. Sales have been launched in all territories. Commercial penetration rates are over 20% for outlets marketed in the last year. In Val d'Oise, rollout is nearing completion. 110 communes are open to commercialization, including 80 since 2019.
Audiovisual revenues stagnate since the shock of the second digital dividend
which reduced the number of DTT multiplexes from eight to six, following the transfer of the 700 MHz band to mobile operators. Against this backdrop, TDF continues to control costs and resources, while offering its customers a high-quality service.
Massive investment and enhanced industrial capacity
In 2019, the TDF Group is pursuing its strategy of massive investment in telecoms and fiber, confirming its position as an industrial player:
- 305.9 million euros were invested, representing 46.7% of sales, up +20.2% on 2018. Of these operating investments, 238.1 million euros corresponded to growth investments, mainly in the Telecom and Fiber businesses.
- These massive investments are enabling the Group to accelerate the rollout of pylon and fiber infrastructure on behalf of its customers, while keeping costs and resources under control. The Group has continued to expand its installed base, which now stands at 18,600 marketable sites, including 6,900 active sites (masts, towers, rooftop terraces, stations, etc.).
- The acceleration in the deployment of pylon-type infrastructures is made possible by the industrial capacity of the TDF Group, which masters the end-to-end construction process.
Over the past few years, the TDF Group has divested its media services activities and fully refocused on its three core businesses: mobile telephony infrastructure, fiber optic deployment and audiovisual broadcasting. After Médiamobile in November 2018, the Bebanjo subsidiary was sold in November 2019. The sale of Cognacq-Jay Image has been effective since January 8, 2020.
The Group's refocusing on infrastructure activities and its increased investment in the infrastructure made available to its customers, combined with tight control of its expenses, is helping to improve its profitability. EBITDA rose organically by +6.2% to €367.8 million.
As an infrastructure operator and digital developer, the TDF Group helps to ensure digital terrestrial television and radio reception for all French citizens. Thanks to the development of its infrastructures, the Group is helping to improve fixed and mobile broadband connectivity, which is essential to French society.
Olivier Huart, Chairman and CEO of the TDF Group, said:
Investing enables us to expand our infrastructure base, and thus to post growing results. On the strength of our industrial capacity, we confirm that we will pursue this strategy, focused on investment and the deployment of our telecoms and fiber infrastructures to improve digital coverage of the territory.