Hello and welcome. My name is Ellie and I will be your conference operator today. At this time, I would like to welcome everyone to the Altice France Fourth Quarter 2025 Results Conference Call. Please note that this call is being recorded. After the prepared remarks, there will be a question and answer session. If you'd like to ask a question during that time, please press star and then one on your telephone keypad. Thank you. I would now like to hand the call over to Sam Wood, Head of Investor Relations. You may now go ahead, please. Hello and welcome to the Altice France Fourth Quarter 2025 E arnings Call. On the line to take you through the presentation today we have Dennis Okhuijsen, Malo Corbin, Gerrit Jan Bakker and Mathieu Cocq, the CEO of SFR. As this presentation may contain forward-looking statements, please refer to the legal disclaimer on slide two. With that, I'll hand over to Mathieu. Thank you, Sam. Good morning and good afternoon, everyone. Starting on slide three, for full year 2025, total revenue of EUR 9.23 billion declined by 8.4% year-over-year on a reported basis. Full year 2025 EBITDA was EUR 2.9 billion and operating free cash flow of EUR 1.4 billion grew year-over-year in line with our guidance. With respect to operations, the mobile customer base was stable over the full year 2025, while the fixed base declined slightly, although fiber customers continued to grow their base. Importantly, NPAs reached positive territory for the first time during the year. On October 1st, 2025, Altice completed its financial restructuring, fully implementing the accelerated safeguard plans for itself and several of its subsidiaries, along with Altice France Holding. This final step follows the restructuring announced in February 2025 and approved by the Paris Commercial Court on August 4th, 2025. It was supported by the Altice France and Altice France Holding financial creditors. This marks the final implementation step of Altice France restructuring. At the end of July 2025, SFR and Bouygues Telecom announced they had entered into exclusive negotiation with Phoenix Tower International to sell 100% of the share capital and voting rights of Infraco. The transaction is now closed. A total of EUR 279 million of the proceeds have been used to repay debt across the secured structure early January. On April 17th, it was announced that Bouygues Telecom, Iliad and Orange have submitted a new offer for SFR telecom activities in mainland France, and Altice France has accepted to enter into exclusive negotiation with a consortium of buyers. Finally, net leverage of 5.3x at the end of 2025. Pro forma liquidity was EUR 0.7 billion. Turning to slide four. We show here an update on recent commercial performance with a focus on total net additions across our fiber and mobile segments. Overall, for the full year, we have continued to operate in a highly competitive environment with ongoing price pressure driven by aggressive promotional activity. Despite these challenges, we've remained disciplined on pricing, avoiding excessive discounting while implementing targeted initiatives to mitigate customer losses compared to 2024. Importantly, we've demonstrated our ability not only to compete, but also to continue delivering a consistent and high-quality experience. In fixed, we've continued to grow our fiber customer base, which now accounts for 90% of our total fixed base. This reflects the success of our fiber rollout and migration strategy. We've also maintained positive fiber net addition in each quarter, underlying both strong commercial momentum and our ability to attract new customers while retaining existing ones. In mobile, performance has been impacted by the intensity of competition in the market, but mobile customer base remained stable in 2025, which is reflected in the net addition trends. Note that in the B2B mobile, we delivered positive net addition this quarter and achieved positive net addition over the full year, demonstrating the resilience of the segment and the effectiveness of our targeted offers for business customers. Slide four. Sorry. Moving to slide five. It gives you an update on customer satisfaction across both internal and external surveys. On the left, you see the result of our internal SFR survey across three key touchpoints: customer service, installation, and shops. Scores are improved meaningfully since 2022, with shops reaching 9.3 out of 10 in December 2025. While we know there is still work to do, the direction is clearly positive, and we have concrete plans to keep driving improvement. Customer satisfaction remains our key priority, which is what we are the most focused on and the most aligned around as a team. On the right of the chart, you can see the ARCEP customer satisfaction survey, which is an external survey by the French regulator independent benchmark. This measure overall performance out of 10 across mobile and fixed services. In mobile, the score has risen steadily from 7.2 in 2022 to 7.9 in 2025. Notably, the share of top rated response, i.e. scores of 9- 10, stood at 34% in 2025. In fixed, score has also improved to reach 7.3 in 2025, with the proportion of top scores increasing from 17%- 29% over the same period. Finally, the chart at the bottom highlights NPS Net Promoter Score development, with both fixed and mobile turning positive during the course of 2025 and reaching unprecedented level by year-end. As of March 2026, customer satisfaction continued to improve significantly, with NPS standing at +13 points on mobile and fixed NPS standing at +9 points. On slide six, you can see the summary financials for the fourth quarter and the full year 2025. Financials for all periods exclude Altice Media, UltraEdge, La Poste Mobile and Infraco. All these transactions have been closed in either 2024 or 2025. In summary, operating free cash flow grew by 6% for the full year of 2025 as a result of lower CapEx, which more than offset EBITDA declines year-over-year. We now see the bottom of the decline in EBITDA and expect to see stabilization in the coming quarters. In the fourth quarter, revenue declined by 9.7% year-over-year, excluding the construction revenue decline. For full year 2025, revenue declined by 8.4% or 7.6% excluding the impact of construction. EBITDA declined by 12.7% in Q4 and by 11.7% for full year. EBITDA was mainly impacted by the direct drop through of mobile residential service revenue year-over-year. Total CapEx was EUR 378 million in the fourth quarter, and EUR 1,535,000,000 for the full year 2025, significantly lower than in 2024. The reduction in CapEx comes primarily from network-related CapEx reduction after several years of significant investment in our fixed and mobile infrastructure. Slide seven now provides an update on XpFibre. Today, Altice France holds 50.01% stake in XpFibre, although its financials are not consolidated in our accounts. XpFibre started as a concept in 2018, and eight years later, it has become the leading alternative passive FTTH infrastructure wholesaler in France, with over 7 million home passed in medium and low density areas. SFR has played a central role in the rollout, delivering the majority of the network build, which is now nearing completion. In the middle of the slide, you can see the penetration rates of the network. They have scaled significantly in line with our original expectations. XpFibre serves French operators through two main revenue models, either a recurring monthly rental fee per line or long-term IRU agreements, typically structured in tranches of 5% within a given area. As we have highlighted in the past, XpFibre benefits from a highly attractive medium-term financial profile, which is now becoming tangible. This puts us on track towards our previously communicated target of EUR 900 million in revenue, supported by strong infrastructure like EBITDA margins. We remain confident that there is substantial equity value embedded in our stake in XpFibre. With that, I will now hand over to Gerrit Jan. Thank you. Okay. Thank you, Mathieu. Moving on to the cash flow waterfall on page eight, on slide eight. Operating free cash flow amounted to EUR 368 million, which is adjusted for the La Poste and Infracos' pro forma effects. Interest shown of EUR 766 million includes EUR 664 million of interest paid on the senior secured debt and EUR 102 million on the junior debt. Cash taxes were EUR 3 million outflow, and changes in working capital and other items generated a EUR 324 million outflow. Majority of this outflow is driven by working capital phasing and follows the material inflow in the third quarter of 2025 of around EUR 170 million. For the full year 2025, change in working capital and other outflow totals EUR 480 million, versus almost EUR 400 million inflow for the full year of 2024. As a result, free cash flow for the fourth quarter of 2025 amounted to EUR 725 million outflow. We detail the change in net debt on slide 15, which mainly reflects cash in related to the Infraco transaction, internal cash management activities, and equitization of the debt related to the completion of the restructuring, in addition to some other non-recurring cash flows. Moving on to slide number nine, where we show you the pro forma capital structure and debt maturity profile. The announced agreement with creditors effectively eliminates debt maturities prior to 2028, while also significantly de-leveraging the balance sheet. This financial restructuring provides Altice France with a substantial extended financial runway, strengthening the company's overall capital structure. The majority of loans mature in 2031, and the secured debt matured, with the secured bonds maturing in 2029, while the unsecured notes mature in 2033. Just on top of that, the fully drawn revolving credit facility was extended to 2030. The blended weighted average life is currently five years, or currently as of Q4 2025. The weighted average cost of debt is 7.7%. Of this debt, we have about 65% of it is fixed rate debt, either by nature or swapped into fixed rates. Pro forma liquidity, as Mathieu mentioned before, is around EUR 700 million, and this reflects EUR 279 million repayment of debt from the proceeds of the sale of the Infracos at early 2026. A portion of this was used to pay pro rata across all tranches. The largest portion of this was used to target repayment of the highest coupon instrument. I'll hand over to Malo to take you through the final slide of the deck. Thank you, Gerrit Jan. Finally, on page 10, Altice France announced on April 17th that they have entered into exclusive negotiations with a consortium of Bouygues Telecom, Iliad, and Orange for the sale of SFR. The offer made by the consortium reflects the enterprise value of EUR 20.35 billion for the assets under consideration. As disclosed previously, this offer excludes shareholdings in Intelcia, XpFibre, UltraEdge, and Altice Technical Services, as well as the operations in the French overseas territories. We are currently working on sale processes for certain of these assets. Altice France has granted an exclusivity period to the consortium until mid-May in order to finalize the terms and conditions and the transaction documents. The process remains ongoing and subject to employee representative consultations and regulatory approvals. This socially responsible transaction would help sustain and strengthen the entire digital economy and the telecommunications sector in France. For now, and as you would expect, we won't provide additional disclosure or commenting further on these advancements. With that, the teams is happy to take any questions. We are now opening the floor for question and answer session. If you'd like to ask a question, please press star followed by one on your telephone keypad. That's star followed by one on your telephone keypad. We will pause for a brief moment to wait for the questions to come in. Your first question comes from the line of Akhil Dattani of JP Morgan. Your line is now open. Good afternoon. Thanks for taking this. The first one is on the SFR deal process. Obviously, congratulations on the progress so far. You mentioned, obviously, you can't comment in detail. I just wanted to ask a sort of adjacent question in relation to the comments in the press release on an earn-out. I'm not sure what level of detail you can provide. Any sort of high-level understanding of what that involves, what the criteria, what the timeframe is, anything along those lines would be super helpful. That's the first one. The second one was operational on the fixed trends. It looks like in Q4, there was a deterioration in both the KPIs, even more so on the fixed revenue performance. Can you maybe just help us understand what's driven that, if there's any one-off elements to that or any sort of particular deviation? Seems there's quite a big step down sequentially. The very last one was just on EBITDA. I think you mentioned you're expecting to stabilize in the coming quarters. Any incremental color on what gives you confidence around that would be really helpful. Thanks a lot. Thanks for the questions. I'll take the first one, and I guess, Mathieu, you will take the question on the fixed trend and the EBITDA profile. On the first question, I don't think any earn-out was mentioned in the press release that was made by the parties, but we've seen in the press some mention of an earn-out. Indeed, there are discussions around an earn-out that will be paid by the buyers depending on the performance of SFR until closing. As you know, we are still discussing the parameters with Orange and Iliad. You know, I think there is no not much detail to be provided today. Regarding the fixed performance, as you have seen, and you mentioned the KPIs, in the quarter in terms of net additions, that was disclosed. Revenue, we are down year-over-year by 11.7%. That is roughly EUR 80 million. There are two drivers mostly, like always, but this time it's a bit, the mix is a bit different. The other revenue, the majority of the drop, that is OTT and collections, is roughly 60% of the EUR 80 million decline. The remainder is the base, basically, multiplied by the ARPU, and the base declined by 2%. With that, you have the split which explains the decline. Clearly the ARPU, the data volumes, trend is similar to previous quarters. Regarding EBITDA stabilization, as you know, if you look at the profile of the company over the past four-three years, the fact that we have stabilized our customer base dramatically between 2023, 2024, 2025. Because we are seeing a softer competitive environment in the beginning of 2026, we estimate that the drop and the decline in EBITDA is now behind us and that we can recover. I will not give further guidance for 2026. Great. Thank you. Your next question comes from the line of Joshua Mills of BNP Paribas. Your line is now open. Hi guys. Thanks for the questions. A few from me. First one's just a follow-up actually on Akhil's. I guess, a simple way of putting it would be, does the current offer that appears from the recent press releases to have been accepted, are you happy to press ahead with this on the level of price, or are you still actively seeking an earn-out? I think our understanding was that the process until May 15 was more due to legal technicalities than negotiation on price. Just to get your current view there would be helpful. Second question is just around the disclosure of the customer net adds. I think in previous quarters you've given residential fixed and post-paid mobile. We've now moved to total fixed and total mobile. Could you just maybe give us an indication of what the residential fixed and post-paid mobile net adds were in Q4 so we can track that versus previous quarters? Be really helpful. Then maybe finally, just any comment you have on the current competitive landscape in the French market as you see it. Thanks very much. On the transaction, first remember, you know, it's a very complex transaction. You have four parties around the table. What has been announced on April 17th is an exclusivity to finalize the transaction and to get to a binding agreement. You know, of course, this is extremely complex and always difficult to summarize in a one-pager press release. You know, I believe that, you know, the parties are pleased to work together towards signing the transaction. Again, I think we are not commenting more on the earn-outs. Yes, regarding KPIs, we will not disclose other KPIs than what you have in the press release. In general, we said that fixed B2B was not huge quarter-over-quarter, and we mentioned that B2B was positive. Clearly we see a stabilization of the customer base, which is clearly boosted by very efficient churn levels directly linked to the NPS. Again, what we are focused on is quality, and you see the vast improvement that we've been doing over the past three years, and that's what we are focused on. On the competitive side, I think that I mentioned already that on the low end of the mobile market, we are seeing less aggressiveness right now. If I compare the situation today to that of last year in April 25 or May 25, we had the worst price at that time, a year ago. It was for EUR 4 you could have 20 gig. Today, the market is still playing. The playground is still around EUR 10 for 100 gig or even more, but it's softer. On the fixed side, the situation is quite similar to what we have seen over the past 12 months. The situation, as you remember, deteriorated in terms of ARPU end of 2024 because of the introduction of fiber-only products with Wi-Fi 7 priced at around EUR 25. This has not changed across the course of 2025, so no major change on the fixed market. Thank you. Your next question comes from the line of Molly Whitcomb of Goldman Sachs. Your line is now open. Hi. Thanks for taking my questions. I have two, please. Firstly, just on CapEx. I'm wondering, obviously you won't guide, but just wondering how you're thinking about building blocks for CapEx over the next couple of years within the context of the deal. Secondly, and also outside of the context of the deal. Secondly, just thinking about to come back a little bit on mobile. There's been some unlimited launches from Iliad, I believe. Just wondering how you've been seeing that impact on the market, if at all. If you don't think there's been an impact and it's just improved rationality, just a little bit more color on that. Thank you. Sure. Regarding CapEx, in Q4 2025, CapEx reduced to EUR 278 million, i.e. a 28% decrease year-over-year, which is in line with what you saw before. The mix between network CapEx and other CapEx like CPEs installation is about 70%- 30%. 70% versus 30%. As we have said previously, we are at the end of many investment cycles. I will not repeat what I said earlier, but the FTTH rollout is near completion. The mobile 5G rollout is also well advanced. We are north of 85% coverage of population in 5G. We also have, you know, fewer customer if we compare ourselves to three or two, three or four years ago, and we have also disengage, and we are disengaging La Poste customers. Basically, we see the trend as a recurring one. Regarding guidance, as I said, for EBITDA for 2026, we will not guide any further on CapEx. On mobile, I think you had two questions. The first was, do we see any impact by the latest launch of Iliad with the pricing, catalog pricing at EUR 29.99. We have been monitoring this very closely over the past 18 days or so. So far we don't see much impact at our level. You had another question on mobile, but I don't really get it. Sorry. No, that covered it. Thank you very much. It was mostly on the Iliad launch. Thank you. Thank you. Your next question comes from the line of Mathieu Robilliard of Barclays. Your line is now open. Yes, good afternoon. Thank you for the presentation. I had a few questions, please. On slide 10, you lay out very precisely what are the assets that are going to be acquired and the ones that are not included in the offer by the consortium. Can you give us a sense maybe, in terms of revenues or EBITDA, how much of the acquired perimeter represents? Is it 90%, 95%, 85%? I don't know if you could give us a bit of color there. It'd be very helpful. I had a question on XpFibre. I think you give some numbers for 2026. Are you sharing the numbers for 2025 in terms of revenue and EBITDA? I think you had laid out some guidance in previous presentations for 2025. I had a question on mobile. I think clearly you've done very well in stabilizing the customer base, which is basically flat year-on-year. At the same time, you say you have not been very aggressive in the market. You try to be disciplined. When we look at the service revenues, they're down double- digits. I was trying to understand what was the missing link between all these elements. Is it because you're seeing a lot of spin down in your customer base? If that's the case, are we essentially behind it? I guess to stabilize the EBITDA, you probably need to stabilize the revenues at some stage, given the operating leverage of the business. Really trying to understand that. Thank you. Thank you. I'll start with the question on the perimeter. You know, it's easier for me to answer, you know, of the size of what is not included in the transaction perimeter. You will assume that the rest is part of the deal. I would first start with XpFibre. We have provided a slide with the guidance for XpFibre. This is outside the perimeter. When it comes to the 2025 financial of XpFibre, I don't have them handy, but you know, they would be included in the financial statements of Altice France that will be released shortly. We'll be able to find XpFibre numbers. The second asset, which is not part of the perimeter, is the business we have in the French overseas territories, which is around EUR 160 million EBITDA. The third one is the stage in UltraEdge. As you know, we sold 70% of UltraEdge to Morgan Stanley Infrastructure, we still own 30%, so that's not part of the perimeter. Obviously, it's a minority stake. It is not consolidated within Altice France's financial statement. I think in addition to that, you have Intelcia, the call center, a deal that we have announced a couple of months ago, which we are actually closing today. You know, in Intelcia, around EUR 50 million EBITDA. Last business being Altice Technical Services, which makes 100% of its revenues with SFR today. It's an internal business. Shall I proceed on mobile? Yes, as you mentioned, volume versus value, and we know about that. As you mentioned, the ARPU trend is negative, but we will see a stabilization. Because what we have implemented two- three years ago was quite massive. We've decided to stop bishop, the bishop system, so you don't enter at 10 with an additional EUR 5 after six months or after 12 months. These are the significant impact of the trajectory. We've decided, as you know, not to implement any price hikes for a long time now already. Also, we have decided to retain our customer and some of our legacy customer, allowing them to rebase themselves more easily at a lower cost than we used to. This is changes in policy that we've done that has this impact, but it was for the benefit of the customer base stabilization, for the benefit of the churn reduction and NPS growth. The market, you know, more broadly is still recruiting the customer at eight-10 and switching and exiting customer, exiting their plan at 18 and 16. We see the same trend, a declining trend on the competitor side. Our is accelerated for the reason I have specifically mentioned, but that we are taking, you know, voluntarily after what happened in 2023 and 2024. Thank you very much. I guess you expect those effects, on the ARPU to be less pronounced in 2026 if you plan- Yeah. To stabilize your EBITDA margin or EBITDA in absolute terms. Yeah, because, it explains most of the decline in EBITDA, as you mentioned. Thank you. Your next question comes from the line of Vivek Khanna of Deutsche Bank, London. Your line is now open. Hi. Good afternoon. A question on XpFibre, if I may. A little bit maybe out of left field. You've got 7.5 million homes covered, 66% penetration. That's a little under 5 million customers at XpFibre. Could you just give us a little bit of color as to a breakup or a composition of that customer base? How much of that is SFR? How much of that is Orange? How much of that's Iliad? How much of that's Bouygues? Potentially also get a breakdown of the customers, as in what percentage of that base is under an IRU contract, and what percentage of the base is more on a straight sort of a wholesale service agreement, please? Just to get a feel for the composition of that customer base. Thank you. Yeah. I think, you know, now the business is quite mature, and in France, most of the six customers are now on fiber, one. Two, as you remember, you know, ARCEP doesn't have any infra competitors in its regions. Correct. Effectively, the split of customers of each PC more or less reflect the split of market share of the four French players. Overall, you should assume that, you know, the national market shares reflect the split of customers. You know, for the mix of IRU versus a monthly rental, you should assume that when it comes to Orange, Free and Bouygues, most of their customers on each PC are through the IRU model. While on our side, at SFR, most of the customers are under the monthly rental model, even though we have some IRU. Most of them are under the monthly rental model. Thank you very much. Very clear. Your next question comes from the line of Laura Homsy of MFS. Your line is now open. Apologies. My question has actually been asked, but I missed the answer. With regards to the offer from the consortium, is there still, sort of negotiation going on around the actual price, or is that something that has been mostly agreed and it's just, other items that still need to be fine-tuned? Thank you. No, I think, you know, I think, you know, we have a deal on the base enterprise value. As you would expect, you know, at the end of the day, you know, the purchase price is, you know, is not only the enterprise value. You have the bridge between enterprise value and equity value. You have this concept of earn-out that we discussed before. You know, all these items are under discussions. That's why, you know, I think the party thought that, you know, we were close from a commercial standpoint to enter into a CD negotiation. We have, you know, we gave ourselves a month to finalize all the terms of the deal and put that in the contract. Understood. Maybe if I may ask, do you think there's a good chance that you can find an agreement? Yeah. I think, you know, all the parties, you know, are working toward that objective, obviously. Sounds good. Thank you. Our last question comes from the line of Uba Abdullah of UBS. Your line is now open. Hey. Thanks for the presentation. I just have two questions. The first one is on the structure of the deal. On slide 10, I know it says you've agreed to sell 100% of the SFR shares. I think it was Orange who basically said this was quite an important change versus the initial discussions in October. I just wanted to understand from your point of view, you know, what is the significance between this share deal versus I think the asset deal that was previously under discussion? The second question is just on mobile. Now that you've stabilized the customer base, is there scope for price rises or price adjustments in the future, do you think now you've completed, you know, the primary objective of getting positive NPS, stabilizing churn, et cetera? Thank you. So first, you know, yeah, so the difference between a share deal and an asset deal, you know, here, the complexity is that, you know, you have three buyers that will have to split SFR between themselves. You know, so that process of splitting the asset, I guess, will take some time. You know, some of the buyers have made comments in the press on this process post-closing. You know, if you would do an asset deal, you would need to do all these splits prior to closing. You know, you are, you know, that would mean that, you know, to close that deal, that could take ages. Which of course does not work for the sellers. We have opt for a much more simple selection structure, which is a share deal, where effectively Altice France would sell 100% of its shares in SFR to the consortium. We also need to make sure that, you know, on our side, we are not left with assets, you know, or small assets, you know, while I think the objective was to exit mainland France. Okay. Regarding the mobile pricing strategy going forward, I shall not expand too much on what we're gonna do, because first of all, we are very reactive. We anticipate what we can, but we also have to react to the behavior of our competitors. Clearly the step that we've been through, i.e., stabilizing the churn, lowering the churn, sorry, growing quality, gives us more opportunity going forward. I don't know how the Q2 will look like, but we will adapt as we did in the previous quarter, but in much better shape with a customer base that is now much more solid and loyal. Thank you. Thank you. Thank you so much, everyone, for attending today's call. We hope to see you soon. Have a wonderful day and stay safe. Thank you. Thank you. Bye-bye. Thank you.