Wind Tre 3Q17 - Weak and disappointing results, accelerated negative trend in mobile
Wind Tre, having just refinanced its whole capital structure, reported disappointing preliminary 3Q17 results, which were well below our expectations. Revenue was down by 6.4% to €1,543m while EBITDA came in 4.9% weaker at €579m. This marked a strong deterioration vs. previous quarters, which came entirely from mobile, the company’s largest segment (80% of total revenue). Indeed, Wind Tre lost 1.6m customers yoy with a strong acceleration in customer erosion over the last 2 quarters (-600k in 2q17 and -500k in 3q17) while ARPU remained broadly stable at €11.7. The performance is worrying as it comes ahead of Iliad’s entrance, which will inevitably increase competitive pressure in the market (although as we previously stated, we do not believe that Iliad’s move will prove to be as disruptive as in France in 2012).
Spread Research is France's first Rating Agency, registered by ESMA (European Securities and Markets Authority) and a leading European Independent Credit Research firm, founded in 2004 and based in Lyon, France. Our experienced team offer key research services using a wide range of investment strategies and research methodologies for the High Yield, Emerging Markets, Convertibles and Loan Markets.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.