PARIS – Altice Group saw its second-quarter core operating profit rise by 6.9% to 2.4 billion euros ($2.8 billion), bolstered by the growth of Altice USA, the unit that owns Cablevision and Suddenlink.
Patrick Drahi’s Netherlands-based telecom and cable group also saw its revenue surge 2.7% to 5.9 billion euros ($6.9 billion) during the second quarter.
Michel Combes, CEO of Altice, attributed the results to the company’s “vision of convergence” which he said consists of “extensive deployment of fiber and super-fast mobile broadband networks, innovations from Altice Labs, investment in content, and monetization of digital and TV advertising.”
The revenue of Altice USA, believed to be the fourth-biggest U.S. cable company, went up 5.8% to 2.1 billion euros ($2.4 billion), while its core operating profit skyrocketed 25.3% to 913 million euros ($1.06 billion).
“Altice USA continues to grow at an accelerated pace with further margin expansion as we continue to execute on our efficiency targets,” said Combes.
Altice USA raised $1.9 billion in an initial public offering in New York last month, and Drahi is expected to make further acquisitions in the U.S.
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Altice USA’s chief executive, Dexter Goei, said the IPO provided the company with “greater flexibility and strategic optionality operating in a competitive industry.”
Meanwhile, the company’s French telecom firm, SFR, saw its profit decline by 4.6% to 953 million euros ($1.1 billion) with revenue fairly stable at 2.7 billion euros ($3.1 billion).
Altice has been ramping up acquisitions of TV content and sports rights in order to attract new SFR subscribers.
Within the last year, Altice has signed distribution deals with Netflix, Discovery and NBCUniversal. As part of its deal, inked in June, with Netflix, Altice will distribute Netflix’s content on its platforms in France, Portugal, Israel, and the Dominican Republic.
The company will also be launching Altice Studio, a service dedicated to premium shows and films, on Aug. 29.
In March, Altice Group announced that it had refinanced a portion of the existing debt of SFR and Altice International to the tune of 2.5 billion euros ($2.9 billion) and 863 million euros ($1 billion), respectively, in order to strengthen its cash flow.