Thank you for standing by. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to Altice France Q2 2025 Results Call. I would now like to turn the call over to Sam Wood, Head of Investor Relations. Please go ahead. Good afternoon, good morning, and welcome to the Altice France Second Quarter 2025 Earnings Call for Debt Investors and Analysts. On the line today to take you through the presentation, we have Benno Sorgheisen, Malo Corbin, Gerrit Jan Bakker, and Mathieu Cocq, the CEO of SFR. As the presentation may contain forward-looking statements, please refer to the legal disclaimer on slide two. With that, I'll hand over to Malo. Good morning, or good afternoon, everyone. Moving to slide three, for Q2 2025, total revenue was €2.29 billion, a decline of 9.1% year-over-year on a reported basis. Q2 EBITDA was €801 million, and operating free cash flow was €423 million. As announced in February of this year, we reached an agreement with a group of creditors at Altice France S.A. and Altice France Holding S.A. This agreement represents a significant milestone for the company, as it will enable it to substantially reduce existing debt burden and lower interest expenses. As you will have seen last week, Altice France has started the implementation of the Safeguard Plan, and Altice France Holding has launched the Auto Exchange Offer. We expect to close this process by early October 2025. Similar to recent conference calls, we will not provide additional commentary regarding the transaction on today's conference call. Further announcements will be made as and when appropriate. At the end of July, SFR and Bouygues Telecom announced they are entering exclusive negotiations with Phoenix Tower International to sell 100% of the share capital and voting rights of a company called InfraCo. Bouygues Telecom and SFR each hold a 50% stake in InfraCo, which is primarily responsible for managing a portfolio of approximately 3,700 sites, for which it holds the leases and passive infrastructure. The transaction is expected to result in gross cash proceeds of approximately €480 million for SFR and is expected to close by the end of 2025, subject to customary condition breakdown. Pro forma for the transaction with creditors, net leverage was five times at the end of Q2 2025, and pro forma liquidity was €860 million. I will hand over to Mathieu Cocq to take you through the coming slides. Thanks, Malo, and good afternoon, everyone. On slide four, we show the updated commercial trends, meaning B2C net addition on the fleet base and B2C net addition on the mobile postpaid base. Overall, our commercial performance has improved both in terms of acquisition and retention in the first half of 2025 versus 2024. One of the drivers of the improved trends is lower churn year over year. These lower churn levels have been driven primarily by an improvement in quality. In general, in the first half of the year, we have seen price pressure from aggressive offers triggered by competitors, while SFR aims to remain price disciplined. SFR has proactively taken action to minimize the loss of customers in 2025 versus what we've seen in 2024. Clearly, SFR is able to match the price points of competition with similar quality. For postpaid mobile, in the first half of 2025, you can see the net subscriber base remained stable despite a challenging pricing environment in the low-end segment. This has impacted mobile ARPU at the low end of the market across the French market. For fixed, total net losses were minimal in 2025 compared to 2024. These improved commercial trends are a leading indicator when it comes to financial performance. While they do not translate immediately in a turnaround in revenue, they give us confidence that trends can improve in the coming quarter. In June, a technical incident affecting a core platform of the mobile network resulted in intermittent service disruption for certain subscribers. The issue was fully resolved within approximately eight hours through the mobilization of our operational team. As a goodwill measure, impacted customers were automatically granted an additional 100 GB of mobile data. We have since reinforced our monitoring and response protocol to further enhance network stability and resilience. Excluding the impact of this outage, residential mobile would have recorded net addition of 4,000 rather than reported net losses of 17,000. While the fixed network was not directly affected by the outage, the interconnected nature of our fixed and mobile offering, particularly through cross-selling, meant that there was a knock-on effect on our Q2 fixed performance. Adjusting for this, fixed net losses would have been 12,000 compared to the 17,000 reported. Moving to slide five, we present our financial performance for the second quarter of 2025. As a reminder, all figures include the contribution from Altice Media, UltraEdge, and La Poste Telecom, which were divested during 2024. In Q2, total revenue declined by 7.4% year over year, excluding the impact from lower construction-related revenue. Our residential service revenue declined by 9.1% year over year, starting with fixed residential service revenue, which was down 6.2%. Roughly half of this decrease stems from our core telecom operation, while the other half reflects lower revenue from other revenues, i.e., connection fees and OTT revenue. As we've noted previously, connection revenue is largely tied to gross addition and first-time activation, which naturally taper off as FTTH penetration continues to increase. In addition, remember that we did not implement meaningful backbook pricing adjustment in Q1 2025, reflecting our decision to prioritize subscriber retention over short-term revenue uplift. Moving to mobile, mobile residential service revenue declined by 11.3%, impacted by customer base erosion seen throughout 2024, and continued competitive pricing pressure across the market in 2025. Business services, excluding construction, declined by 2%, meaning the vast majority of the decline in B2B was driven by construction. EBITDA decreased by 10.8% in the second quarter, and this performance was shaped by two key factors. First, the direct flow-through effect from the decline in residential revenue, primarily reflecting lower year-over-year revenue levels in both fixed and mobile. Second, construction activity continued to be a drag on EBITDA as previously guided on. Capex expenditure for the quarter totaled €378 million, a notable reduction versus Q2 2024. This decrease reflects a deliberate pullback in network-related investment following several years of heavy spend across our fixed and mobile infrastructure. In 2025, we remain focused on capex discipline, particularly in areas like FTTH and 5G, where prior investment levels will not need to be sustained. Consequently, EBITDA minus capex, or operating free cash flow, reached €423 million in Q2 2025. We continue to expect growth in EBITDA minus capex for the full year 2025 compared to 2024. With that, I'll now pass over to Gerrit Jan Bakker to continue the presentation. Thank you, Mathieu. Moving on to slide number six, we show you the free cash flow waterfall for the second quarter. Below operating free cash flow, we had an interest cost of €296 million for the quarter. Cash taxes amounted to €11 million, and change in working capital and other was a €200 million outflow. For the full year 2024, there was a €350 million positive change in working capital. The majority of the outflow this quarter is an unwind of that. Consequently, free cash flow for the second quarter of 2025 amounted to an outflow of €137 million. Below free cash flow, in order to bridge the change in net debt quarter over quarter, main items relate to securitization, principal, and interest. Interest rate swap unwinds and cash coming from an unrestricted subsidiary. On top of that, we had FX impact on gross debt totaling approximately a €300 million inflow. Moving on to slide number seven, where we show you the pro forma debt maturity profile. The announced agreement with creditors removes all debt maturities before 2028, in addition to meaningful deleveraging of the balance sheet. The transaction provides Altice France with a significant extended runway. As you can see in the chart on the slide, the majority of the loans will only mature in 2031, and the secured debt starts from 2029, with the unsecured debt maturing in 2033. The RCF, the revolving credit facility, will also be extended in full to 2030. Finally, turning to slide eight, where we show you a short overview of the pro forma debt metrics and liquidity. Blended weighted average life is 5.7 years as of Q2 2025. The weighted average cost of debt as shown on the slide for Altice France and Altice France Holding is presented before the impact of hedges. Pro forma liquidity is €860 million, and the majority of the disposal proceeds from media, data centers, and La Poste Telecom, as well as the SP5 dividend recap, will be used as part of the transaction. As mentioned by Malo, at the end of July, SFR and Bouygues Telecom announced they had entered into exclusive negotiations with Phoenix Tower International to sell 100% of the InfraCo. The transaction is expected to result in total gross cash proceeds of approximately €480 million. Note that we have not included these proceeds in the pro forma figures shown in the slide. We're actively working on other processes to realize further disposal proceeds. We don't have more to say on that at this point in time. If and when we do, further announcements will be made as appropriate. As mentioned before, we have an objective to reduce leverage to 4 times. With that, Dennis, Malo, Mathieu, and myself are happy to take any questions. Operator, if you could open the floor for those. Thank you. At this time, I would like to remind everyone, in order to ask a question, please press star, then the number one on your telephone keypad. Our first question comes from the line of Akil Datanie with JP Morgan. Your line is open. Hi, good afternoon. Thanks for taking the questions. I've got a few, please. Firstly, can I just ask on the guidance you're giving for the full year on operating cash flow? H1's around down 5%, and obviously, you're guiding for growth for the full year. It'd just be helpful to get some color on what drives that. Is that revenue improvement? Is it costs on the OpEx level, or is it CapEx? Just so we understand the moving parts to get to what you're expecting for the full year. The second thing is you mentioned the Safeguard process. We've seen some press reports around appeals. If you could maybe just give us an update on who has and hasn't appealed, and is that relevant, and is there any chance that could impact and suspend the process, or whether this is just procedural and there's limited or no risk to the October timeline? The last one was just in regards to French consolidation. I'm sure there's limits on what you can say on this, but I guess just two things I wanted to understand. There were press reports suggesting there have been numerous meetings through July. I was wondering if SFR is part of that, just to understand the high level of what are these meetings and what do they involve. Second to that, obviously, we've had a lot of developments in the French political environment this week. Any thoughts around whether that has any implications for the industry at all? Thanks. Thanks for the question. A cross question on guidance. Yeah, we stick to our guidance to grow EBITDA minus capex in 2025 versus 2024. Obviously, you have seen the trend, revenue, EBITDA, and capex, especially revenue and EBITDA for Q1 and Q2. Given our business, you know it's not a trend that you reverse in one single quarter. Mechanically, you should expect that part of the growth of EBITDA minus capex will come from capex reduction. That's something that has started already last year, and you see the progress every quarter. In H2, you will see more capex reduction compared to H2 2024. I guess EBITDA should improve, but will remain in negative territory. Most of the growth will be fueled by capex reduction in the second half of 2025 versus the second half of 2024. Second question on the restructuring process. Following the positive judgment we had early August, indeed, there has been one appeal by the employee representative, and they are seeking suspension of the judgment of August. On our side, we feel strong about the timetable we have put forward, which is to close the restructuring on October 1. As you have seen, our restructuring plan has for sole objective to reduce the absolute debt of Altice France, to reduce interest, and to increase or to delay the maturity of the debt. This restructuring plan has no impact on operation and no impact on employees. The pure effect is on reducing the debt. We don't believe that the employee representative has a case as employees are not impacted at all by the plan. Last question on French consolidation. Obviously, and similar to previous quarter, we are not going to comment on the topic. Whatever press articles you may have read on this, what we can comment on is that we remain always very active in reviewing our portfolio. When that makes sense, we're happy to transact. As you may have seen in early August, we've done that deal together with Bouygues Telecom on some mobile towers that we had with them in a 50/50 JV. We signed the deal, or we signed an exclusivity with Phoenix Tower International on that one. There is no other concrete transaction to be discussed on the call today. I think that you had one question on the politics. We don't believe that the current political situation in France has impact on our current business or ability to do transactions like the InfraCo transaction or other transactions. Thanks a lot. Our next question comes from the line of Mollie Witcombe with Goldman Sachs. Your line is open. Hi, Anne. Thank you for taking my questions. I was wondering, fast forward, if you could talk a little bit about the competitive environment that you're seeing in France. There's been some talk from your competitors about intensity in mobile, specifically on the budget end. Just wondering what kind of environment you're seeing there. Really the same question for the B2B business. You said that the decline ex construction was minus 2%. What do you think are the barriers to growth in that business, and how do you see it developing over the rest of the year and into next? I was just wondering, last of all, if you could just talk us through the moving parts on the EBITDA decrease, anyone else to think about, just how we should think about that mechanically. Thank you. Okay. Regarding the environment and the competitive environment, what we have to keep in mind is that the volume of net adds on the French market, like last year, is a bit low compared to what we had in 2020, 2021, or 2022. Competitively, as we saw for Q1, Q2 was very competitive. I say that because end of May, when we last talked, it was the peak of competition, really, because at that time, we had offers. For instance, for €4, you have 30 giga, which was crazy in terms of pricing. The market has now a bit softened in July and August. To give you just one example on our portfolio, in last May, we would price a 30 gig for €5. Now for mobile, we price a 20 gig for €7. Clearly, the market is getting better in terms of pricing, but it's still very, very low. Regarding B2B, you mentioned that excluding construction, revenue decline was 2%. Your question was regarding barriers to growth. Clearly, this market, as we see it on B2C, is very competitive. Prices are going down on most of the products. You have also many small players entering the market. Its competition is high, and barriers to entry are not so high. Of course, we have had a bit of impact over the past few months regarding the restructuring. The liability management in France has not been helpful, but we are now close to the end of it. I think it's going to be a better place to operate, especially when you see the market share of the incumbent, which we see are very high. We still see that as a market growth opportunity, but price remains declining. Market share-wise, we are still a huge step to make. Regarding EBITDA decrease, it's quite simple to analyze it because close to 100% of it is a direct impact from the revenue decline. Out of the €100 million or so decline, all of it is a direct drop through of the service revenue decline. Very clear. Thank you very much. Our next question comes from the line of Vivek Khanna with Deutsche Bank. Your line is open. Hi. Good afternoon, and thanks for the presentation. I had two questions, if I may. I guess the first one is with regards to the fixed service revenue decline, which is down 6%. You said 3% is due to lower connection revenue. That's about a €20 million decline in the quarter. Could you maybe just give us a sense as to what the connection revenue base was on an LTM basis so we just get a sense for what potential further pressure we could get over time? The second question is just as a point of clarification. You have mentioned that you expect to get gross proceeds of €480 million on the back of the tower transaction. How much would that be on a net basis? Thank you very much. Like post-tax or post any other costs. Thank you. We first comment on the fixed revenue. As you said, it's declining by 6.2% year over year with two drivers, as you mentioned. The first one is the connection fees, but we will not give absolute numbers on that item. To give you some more on the actual decline of the activity, the customer base was down 2%. The base ARPU has been impacted, of course, by the fact that we have not made this year any backbook adjustment in Q1 and Q2. The market remains competitive. Just before, I gave you examples of the fact that the market is softening in terms of pricing on the B2C mobile. On the fixed, it's not the case. We still have very aggressive pricing, especially on products without TV from Bouygues Telecom, IAD, and SFR, which is the Orange brand. Understood. Yeah. I think, Vivek, on your second question on the net proceeds for InfraCo, we should be around €460 million. Our last question comes from the line of Joshua Mills with BNP Paribas. Your line is open. Hi, there. A couple of questions from my side. Firstly, I think in the past, you've given a bit of an indication on trading volumes in the current quarter. Given that we've had this mobile network outage in June, could you give us an indication on how net adds are trending into Q3? In particular, whether you think that the churn issues related to that outage were isolated to Q2 or whether you've seen any spillover into Q3 as well? That would be helpful. Secondly, I think going back to Axel's question, obviously, the capex reduction is the driver of the op-refresh rate growth this year. There is some skepticism out there around the sustainability of that capex reduction in the longer term. Could you maybe just get a bit of color around what's driving the 24% decline in capex this year? Maybe reiterate or come back to comments made in the past as to where you think the sustainable level of capex sales this business will settle longer term. Thank you. On Q3 volume, we will not comment. As I said, the volume of net adds in Q2 was comparable to that of last year, meaning that in fixed and mobile, roughly the volume of net adds for the total market on B2C is close to 80,000 net adds for all the players. You can see that this year, those net adds have spread more evenly across operators. A year ago, we had massive losses compared to others. The gap between us and our competitors was in the order of 100,000, 200,000. Now it's in the order of a few thousand. We are getting better, but we will not comment on Q3. Regarding the capex sustainability, we had already mentioned that we face lower capex intensity for two reasons. The majority of it is network, and the rest is TP installation because, as we just mentioned, mechanically, as FTTH is rolled out, the connection fee that we pay to infrastructure operators is decreasing accordingly. Coming back to network, which is the biggest chunk of the capex reduction, as we have said prior, we are well advanced in 5G rollout. We're now close to 85% of the population covered. We also are covering all of the territory in FTTH with 41 million home paths totally for all the players. Clearly, we do not invest anymore in capillarity of this network. We have some specifics on mobile. Remember, we will progressively disengage from La Poste Mobile in the coming quarters. We have lost, as you know, some customers over the past few years in the order of 2 million teams compared to 2022. Finally, as we have already mentioned, the data consumption itself and the capacity we need to put in our network is not the one we had expected three years back. Three years back, the growth was 30% per year per user for data. Now it's in the order of 10%. For all those reasons, we believe that our direction with regard to capex reduction is sustainable. Great. Thank you. If there are no further questions, we can end the call.