TDF GROUP POSTS SALES GROWTH, DRIVEN BY DEPLOYMENT OF TELECOMS AND FIBER INFRASTRUCTURE
In 2021, the TDF Group will post :
- Sales of 731.7 million euros, up +6.4%, driven by mobile telecoms and fiber optics
- EBITDAaL of €412.2 million, up +5.8
- Capital expenditure up 18.6% to 418.4 million euros, or 57.2% of sales.
- Increased industrial capacity with 180,000 FttH connections built and 240 new telecommunication towers made available by 2021
The TDF Group has been growing for three years. This growth corresponds to the implementation of its strategy, which is based on an ambitious investment program in very high-speed fixed and mobile broadband infrastructures, initiated in 2015. Backed by its industrial capacity to build and deploy infrastructures on a massive scale, the group is relying on an investment strategy to differentiate itself in an increasingly competitive sector.
- In mobile telecoms infrastructures, the TDF Group recorded sales growth of +9.5%.
The Group consolidates the presence of mobile operators and other customers on its existing towers (+ 800 points of presence), particularly with the arrival of 5G on the territory. With 20,381 points of presence on its towers and rooftop terraces (€362.6 million in sales), TDF is consolidating its position as a major player in the digital development of the country, serving the connectivity of French homes and businesses.
In 2021, TDF is continuing its massive industrial deployment of telecoms infrastructure for digital coverage. 240 mobile telecommunications towers have been made available to operators, bringing the total to 1,130 since the tower construction program was launched in 2016.
In other telecom services, sales were up +13.8% (€44.9m), boosted in particular by the rollout of 5G, which is supporting the Engineering, Datacenters and Mobile Edge Computing businesses.
- In fiber, rollout accelerated further, enabling the TDF group to confirm sales growth of +80% to 36.3 million euros.
60% 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 have been completed. 180,000 sockets have been built by 2021, bringing the total number of marketable sockets to 410,500 out of the 750,000 allocated to the TDF group.
Sales have surged in all regions, multiplying the volume of orders by 2.5: the number of outlets connected has risen from 63,300 at the end of 2020 to 155,500 at the end of 2021.
The TDF Group thus confirms its position and industrial expertise as a national operator of FttH networks.
- In the audiovisual sector, revenues were down 1.8% on 2020. The contextual evolution of this sector is weighing on this activity.
Given the erosion of revenues in this business, TDF is continuing to control costs in Digital Terrestrial Television and radio broadcasting. Thanks to its expertise in network operation and supervision, the Group is able to provide its customers with a quality service, in a context where the terrestrial platform remains popular with the population. The DTT platform is one of the main modes of television reception in France, with coverage of 97% of the population and 46.3% of households using it (Observatoire de l'équipement audiovisuel des foyers de France métropolitaine, published by the Conseil Supérieur de l'Audiovisuel - data for Q2 2021).
On the DAB+ (Digital Audio Broadcasting) digital radio market, TDF positions itself for local, regional and national calls for tender, following the pace of the roadmap set by Arcom (Autorité de Régulation de la Communication audiovisuelle et numérique, ex-CSA).
TDF's commitment as a responsible industrial player
As part of its Corporate Social Responsibility (CSR) performance for 2020, the TDF Group has been awarded a score of 100/100 for 2021 by GRESB, the benchmark organization for the real estate infrastructure sector. Internationally, TDF ranks number one in all categories, and has been awarded the "Sector Leader" distinction in the "Data infrastructure" and "Data infrastructure - data transmission" categories.
As a major player in telecommunications infrastructure and digital development, the TDF Group helps to ensure that all French citizens can receive digital terrestrial television and radio. In addition, through the development of its infrastructures, the Group is helping to improve fixed and mobile broadband connectivity, which is essential for the population.
A strategy of massive investment in mobile telecoms and fiber based on the TDF Group's industrial capacity:
- In 2021, the volume of investments continues to grow: 418.4 million euros have been invested, representing 57.2% of sales, up +18.6% on 2020. Of these operating investments, 339.1 million euros correspond to growth investments, mainly in the Telecom and Fiber businesses.
- These investments are in line with the Group's growth strategy, which involves the massive 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 installed base, which now stands at 19,200 marketable sites, including 7,800 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.
The Group's refocusing on its infrastructure activities and its investment strategy, combined with tight control over costs, enabled it to generate growth in operating income. EBITDAaL rose by +5.8% to €412.2 million. In addition, the Group's order backlog reached a very high level of 3.844 billion euros, equivalent to 5.3 years' sales. Its 18% increase over 2020 is the result of infrastructure rollouts, particularly for fiber optic networks, as well as the renewal of major contracts for audiovisual broadcasting services.
Continuing the ambitious telecoms infrastructure deployment program in mainland France and the French overseas territories :
- The TDF Group has acquired 70% of the ultra-marine company Towerco Réunion Mayotte (TORM) in 2021. TORM is a mobile telecoms infrastructure operator in La Réunion and Mayotte, currently operating 195 telecoms sites.
- To support its growth, the TDF Group has considerably strengthened its financial structure and liquidity over the past 12 months:
o In March 2021, the Group set up a new €300 million syndicated credit facility to finance the Group's capital expenditure.
o In December 2021, TDF Infrastructure finalized a new bond issue for 800 million euros.
o Finally, in February 2022, TDF Fibre, a company owned by TDF (79.5%) and Banque des Territoires (20.5%), raised 725 million euros in Social Loan bank financing to increase its financial resources. This operation, which will provide a structure for the years to come, comes at a time when fiber rollouts in the territories assigned to TDF are well underway or nearing completion. TDF Fibre will enable the TDF group to deploy, manage or take over new FttH (Fiber to the Home) and FttO (Fiber to the Office) networks in France, in addition to deploying and marketing existing networks (Val d'Oise, Yvelines, Loir-et-Cher, Indre-et-Loire and Maine-et-Loire).
Olivier Huart, Chairman and CEO of the TDF Group, said:
"Building on our industrial capacity, we confirm the continuation of our strategy focused on our investments and the deployment of telecom infrastructures and fiber optic networks. At a time when our fiber optic networks are completed or nearing completion and 5G-related needs are soaring, our expertise in networks and telecommunications is leading us to envisage new services for our customers. The TDF Group has all the assets to succeed in these new challenges and to respond to the sector's technological evolutions."
The figures in this press release exclude IFRS16. EBITDAaL: EBITDA plus operating rental expenses and excluding IFRS 2 expenses, severance payments and related fees. See appendices for detailed figures.