SALES GROWTH, DRIVEN BY TELECOMS AND FIBER ACTIVITIES AND ONGOING INVESTMENTS
In 2020, the TDF Group will post:
- Sales of 687.2 million euros, up +4.9% organically thanks to telecom and fiber infrastructure rollouts
- Capital expenditure up +15.3% to 352.7 million euros, or 51.3% of sales
- Increased industrial capacity , with 260,000 FttH outlets built or under construction and 300 new telecom towers to be raised by 2020
- Adjusted EBITDA of €389.4 million, up +5.9
The 2020 results confirm the resilience of the Group's activities, against the backdrop of the Covid-19 health crisis. In line with previous years, TDF is consolidating its growth strategy. This strategy is reflected in organic investments and massive industrial rollouts to support the growth of very high-speed fixed and mobile broadband infrastructures. These infrastructures are all the more essential in the current pandemic period.
The figures in this press release are shown excluding IFRS16 and proforma for the results of the Cognacq-Jay Image and Tim Congo subsidiaries, which have been sold. Detailed figures in appendices.
- In telecom infrastructures,
the Group is stepping up the operation of its existing network and the construction of new masts to accelerate mobile coverage. The Group's ongoing tower construction program and the marketing of its existing infrastructure, despite the effects of confinement periods, have enabled it to post sales growth of +8.3%.
In 2020, 300 mobile telecommunications masts were raised, bringing the total to
1,100 since the tower construction program was launched in 2016.
On-site reception services (hosting operators on TDF Group sites) saw organic growth of +6.2%. In other telecom services, sales were up +30.8%, boosted in particular by the rollout of 5G.
- In the fiber,
the pace of rollouts has accelerated, enabling this business to triple its sales to 20.2 million euros. 70% of the four networks won by the Group (Val d'Oise, Yvelines, Loir-et-Cher/Indre-et-Loire and Maine-et-Loire) have been deployed, and rollouts in Val d'Oise and Yvelines are nearing completion. In all, 506,000 of the 750,000 sockets allocated to the TDF group have been or are being built. No fewer than 260,000 sockets were completed in 2020.
Marketing is progressing successfully in all territories, with 80,500 orders at the end of December 2020, compared with 17,000 a year earlier. The TDF Group has thus confirmed its credibility and industrial expertise in this new market.
- In the audiovisual sector,
revenues are down 2.1% on 2019. The health crisis and the context of this market have weighed on the sector. TDF continues to control costs and resources in broadcasting Digital Terrestrial Television and radio, while offering its customers a quality service, in a context that makes the terrestrial broadcasting platform more essential than ever.
Massive investment and enhanced industrial capacity
The TDF Group is pursuing its strategy of massive investment in telecoms and fiber, confirming its position as an industrial player:
- In 2020, 352.7 million euros were invested, representing 51.3% of sales, up +15.3% on 2019. Of these operating investments, 307.4 million euros correspond to growth investments, mainly in the Telecom and Fiber businesses.
- These investments are enabling the Group to accelerate the deployment of pylon and fiber infrastructure on behalf of its customers, while keeping costs and resources under control. The Group has continued to expand its portfolio of sites, which now totals 19,000 marketable sites, including 7,300 active sites (towers, roof-tops, stations, etc.).
- The acceleration in the deployment of pylon infrastructures and fixed broadband networks 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 sold off its media services activities and fully refocused on its three core businesses: mobile telephony infrastructure, fiber optic networks and audiovisual broadcasting. After Médiamobile in November 2018, Bebanjo in November 2019, the sale of Cognacq-Jay Image has been effective since January 8, 2020. The Tim Congo subsidiary was also sold in May 2020.
The Group's refocusing on its infrastructure activities and the investment strategy pursued, combined with tight control over expenses, enabled it to generate growing operating income. EBITDA rose organically by +5.9% to €389.4 million (adjusted proforma and excluding IFRS 16).
The Group's order book stands at 3.3 billion euros, equivalent to 4.7 years' sales. Its increase over 2019 (+30%) is the result of the infrastructure rollouts completed, as well as the protocols signed for the renewal of major contracts with telecom operator customers.
In 2020, the Covid-19 health crisis confirmed more than ever the importance of telecommunications infrastructures, of which TDF is a major player and digital developer. The TDF Group contributes to ensuring the reception of Digital Terrestrial Television and radio for all French citizens. In addition, thanks to the development of its infrastructures, the Group is helping to improve fixed and mobile broadband connectivity, which is essential for the population.
In 2020, TDF's operational and tertiary activities were uninterrupted.
Olivier Huart, Chairman and CEO of the TDF Group, said:
Despite the health crisis, we continued to invest in our telecoms, fiber and audiovisual activities, which are more vital than ever for the population. We continued to expand our infrastructure and digital coverage. Our resilience has enabled us to post growing results. Backed by our industrial capacity, we confirm that we will pursue this strategy, focused on investment and the deployment of our telecoms and fiber infrastructures.