PARIS — Patrick Drahi’s Altice saw its profit rise by 2.7% with adjusting earnings of 2.27 billion euros ($2.52 billion) during the second quarter, bolstered by the group’s recent acquisitions in the U.S..
Listed on the Dutch stock market and headquartered in Amsterdam, Altice reported a 2.6% year-on-year drop in revenue to 5.83 billion euros over the second quarter.
But Altice made headway in the U.S. this year with the acquisitions of Cablevision and Suddenlink Communications. The company stated Tuesday that Altice USA, which combines Cablevision and Suddenlink, brought in 41% of the group’s operative free cash flow.
“This quarter saw Altice transform into a leading transatlantic, converged telecoms and media company. Having successfully closed the Cablevision acquisition, Altice USA has become the 4th largest cable operator in the attractive and competitive US market,” said Michel Combes, CEO of Altice, who added that U.S. businesses were going to play a key role in Altice’s growth.
At Cablevision, earnings before deducting interest, taxes and depreciation charges (EBIDTA) rose 8.7% to 471 million euros, while revenue dipped 1% to 1.43 billion euros.
Suddenlink’s adjusted earnings climbed 16% to 258 million euros, and its revenue increased 3% to 566 million euros.
Meanwhile, the company’s French operations, notably the telco and cable outfit SFR, saw profit drop 6.8% to 909 million euros. Revenue fell 4.3% to 2.78 billion euros because of declining subscriber numbers.
Combes said that the quarter had been “commercially challenging” for SFR in France but that he expects to see revenues climb thanks to fiber expansion and accelerated 4G/4G+ network offers. The exec also alluded to the company’s agreement with French labor unions to eliminate 5,000 jobs — a third of SFR’s workforce — through buyouts, layoffs and attrition between July 2017 and the end of 2019.
Altice has also been diversifying into content with SFR, commissioning and acquiring TV shows and movies for its VOD platform Zive.