Good morning. Welcome to the iliad Group first quarter 2025 results conference call. Please note this call is being recorded, and for the duration of the call, your lines will be on listen only. However, you will have the opportunity to ask questions at the end of the call. This can be done by pressing star one on your telephone keypad to register your question. I will now hand you over to your host, Mr. Thomas Reynaud, Group CEO, to begin today's conference. Thank you. Good afternoon, everyone, and good morning for those listening from the U.S. I'm here in Paris today with Aude Durand, our Deputy CEO, with Thomas Kienzi, our Group CFO, and we have the chance to have Ken Campbell from Play in Warsaw, and Benedetto Levi from iliad Italia in Milan. Unfortunately, today we do not have Nicolas Thomas from Free, but for good reason, he's having a baby, so this is a future new subscriber for iliad, which is an excellent piece of good news. I think it's great to connect with you again just a few months after the announcement of the results. Just as a reminder, in 2024, we delivered all the KPIs of our ODC 2024 plan, and we reached two major milestones. We get into the top five of the European telecom players in number of subs, and we cross the EUR 10 billion revenue threshold, and that was a real turning point for our company. We have set two clear priorities for ODC 2028. On the one side, to keep the leadership in terms of growth in Europe. On the other side, to make sure that that growth turns into stronger free cash flow. I can tell you that we had a good start of the year in Q1 2025 in a tough market environment. This is probably one of the key takeaways of Q1. The market environment is becoming more and more mature on one side, and at the same time, and this is a big paradox, it is becoming more and more competitive, maybe more competitive than ever, and I will have the opportunity to come back on it. The good news is that in a tough market, we had a good start in Q1. We maintain our leadership in terms of revenue growth in Europe, with a 6% revenue growth in service revenue. This growth is not an accident. It is powered by innovation, the strengths of our three brands in Poland, Italy, France, and a clear focus on service quality. Our business model is also becoming more robust. Thomas Kienzi will come back to it in a moment. Thanks to strong cost control and good operating leverage, our OFCF grew by 9% in Q1, and with also a strong increase in our equity free cash flow. Clearly, in that specific context of a more mature and more competitive market, we need to step up our game to find the right balance between volume and value, to push our customers to the high-end offer, and at the same time, to better bundle broadband and mobile, and this is exactly our commercial strategy. Maybe let's have a quick look at each of our key markets. I will start with France. We are the only telecom operator posting positive growth rate in Q1, with clearly lower recruitment, but a strong value management, and we are particularly proud of the latest customer satisfaction survey, not of an independent house, but from the telecom regulator, and Free ranked number one for overall satisfaction, both in both broadband and mobile, and that's a big win for the French team. Congratulations to them. Italy, very good surprise. You may have seen some comments from some of our competitors on the fact that iliad Italia is losing momentum. What I can tell you is that our Q1 performance is stronger than Q4, with 258,000 additional customers. We are number one in terms of net assets now for 28 quarters in a row. This is quite an achievement, and that despite extremely aggressive offers from competitors. WindTre at EUR 4.99 for 200 GB, Telecom Italia at EUR 4.99 for 100 GB. We can say that we managed to keep on gaining market share based on the quality of our offer, based on the power of our brand, and not necessarily on pricing. The good news also regarding Italy is that we significantly improved the profitability of our Italian operations. Thomas will come back on it. In Poland, organic service revenue grew by 6%, with mobile revenue growth by 9%. Very strong performance, but we are losing a little bit of ground in broadband in Poland, and we really need to do a turnaround on that topic. We are working hard in terms of processes, which is super important for us. I am going to say a few words regarding ESG. I know that many global leaders do not consider global warming as a hot topic. For iliad, cutting our carbon footprint is still super important, and this is the reason we announced four new power purchase agreements, which means that we're going to cover 15% of our needs with renewable energy. And these PPAs, on the one side, reduce our carbon footprint, especially in Poland and in Italy, but enable us also to secure attractive and stable prices for the next 15 years with a high level of visibility on our energy cost, and this is super important. To conclude, our markets are becoming really tougher and tougher, but even in that difficult competitive environment, we managed to keep the focus on our two objectives: leading the pack in terms of growth, and at the same time, better cash flow generation. I'm happy to confirm that we will meet our target of EUR 2 billion operating cash flow in 2025. I hand over to Thomas Kienzi. Thank you, Thomas, and good afternoon, everyone, and good morning for those in the U.S. As described by Thomas, this quarter demonstrated a very solid performance, both in terms of growth and in terms of cash flow generation. Our consolidated revenue grew 4.3% year on year, followed by all our geography, with France growing at 3%, Poland growing at 5.3%, and at plus 2.1% at constant effect, and Italy growing at 9.4%. It is a slowdown compared to the previous quarter, but it is a solid performance, and it is consistent with what we anticipated for the quarter, given, as Thomas said, markets that are becoming more and more mature, and also given a high level of competitive intensity. It also reflects our willingness to find the right balance between volume and value, and between retention and acquisition. We exceeded during the quarter EUR 2.5 billion in revenues, with EUR 2.3 billion coming from services and around EUR 200 million from equipment sales. Our service revenues grew +5.7% year on year. It's a very strong performance, showing our ability to drive volume, but also value growth in all our markets. Equipment sales were down by 10% in the quarter, both in France and Poland, reflecting market maturity and therefore lower growth. The decrease in equipment revenue has a very limited impact on EBITDA as margin on equipment sales is low. Performance of the quarter was also very solid in terms of profitability. EBITDA in Q1 reached EUR 931 million, up 6% versus last year, despite some tax headwind in France, with the increase in IFER tax by EUR 41 million. Profitability improved in all our geographies. EBITDA in France increased by 0.9%, but excluding the impact of IFER, it's an increase in EBITDA of 8%. EBITDA in Poland grew by 13%, and EBITDA in Italy increased by 24%. This translated at group level by a 70 basis points margin expansion, reflecting once again our strong operating leverage and our cost discipline. We invested during the quarter EUR 428 million in CapEx, mostly to expand our 4G and 5G coverage in all three geographies, and in order to pursue the FTTH rollout and to sustain in France the development of our B2B activities. This amount is relatively stable compared to last year, despite the fact that last year's numbers included in Q1 some disposal of non-core fiber assets in France. Talking about cash generation now, our operating free cash flow in Q1 increased by more than 9% to reach EUR 503 million. This represents an increase of EUR 43 million versus last year. Focusing now on each of our countries, in France, operating free cash flow was down, but excluding the impact of IFER, it's up by 6%. Very strong performance in Italy with an operating free cash flow which more than tripled on our mobile operation to reach EUR 38 million. Also very strong performance in Poland with an operating free cash flow which increased by EUR 34 million, which represents a 20% increase. With this strong start of the year in terms of cash flow generation, we are happy, as Thomas just said, to confirm our EUR 2 billion OFCF target for the full year. On the next slide, you can see the usual operating free cash flow to equity free cash flow bridge. We generated during the quarter EUR 656 million of equity free cash flow, of which EUR 440 million from the disposal of OFCOR. Excluding OFCOR, our recurring cash flow generation increased very significantly, as our equity free cash flow quadrupled versus last year to reach EUR 216 million. In detail, group operating free cash flow increased by EUR 43 million compared to last year, as we just discussed. Income tax increased by EUR 30 million in line with our improved profitability. Net interest increased by EUR 20 million, reflecting a slightly higher interest rate. Networking capital and other items contributed a positive EUR 103 million inflow, mostly due to IFER payments that are being recorded in Q1, but cashed out in June and December. Last comment on this slide regarding spectrum. Spectrum spending amounted to EUR 130 million, down 2% versus last year. This amount includes EUR 70 million from Poland, as we paid the first part of the PLN 726 million spectrum acquisition we made in Q1, with the remaining part to be paid in Q2. Thanks to this strong cash flow generation, our leverage ratio at iliad Group level went down from 2.7 to 2.5 times at the end of Q1, with net debt going down from EUR 10.3 billion to EUR 9.7 billion. On the right-hand side of the slide, you can also see that we have proactively managed our debt maturities, with an amendment and extension in May of our PLN 8 billion Play facilities maturing in 2026, which were extended by four years to 2030. Thanks to that, we benefit from a very strong liquidity position, with EUR 1.4 billion in cash and EUR 2.8 billion of undrawn credit lines, which enables us to cover well our upcoming debt maturities for at least the next three years. Final word on iliad Holding. Our leverage also went down from 3.8 times to 3.7 at the end of the quarter, and net financial gains went down from EUR 15.2 billion to EUR 14.7 billion, reflecting the strong cash flow generation. Here again, our liquidity position is very strong, with EUR 400 million of liquidity and undrawn credit lines available, and no debt maturities before 2027. This is it. Thank you for listening to us, and we are now open to take any question you may have. Ladies and gentlemen, as a reminder, if you would like to ask a question or contribute on today's call, please press star one now on the telephone keypad, and to withdraw your question, hit star two. Also, ensure your line remains unmuted locally. You will be advised when to ask your question. The first question comes from the line of Laura Homsy, calling from MFS. Please go ahead. Hi, thank you so much for taking my question. Just wanted to hear any thoughts you may have on recent headlines around Italian market consolidation, in particular with regards to a combination between iliad Italia and TIM. Thank you for your question. I know that some Italian telecom executives are very talkative about Italian consolidation, but what I can tell you is that there are currently no discussions ongoing and that we are continuing on our path of organic growth. If I would summarize our mindset at iliad, we view the consolidation as a nice to have, but not as a must-have, and look at the recent dynamic of our Italian operation. We have surpassed 12 million users. We are the leader in terms of net adds for 28 consecutive quarters. Our EBITDA grew by 24%, and we have a very strong operational free cash flow from our mobile activities, and we decide to reinvest that mobile cash flow into our broadband activities. Consolidation is definitely not a necessity for us, and for the time being, a lot of no's for nothing. I appreciate that. Maybe asking differently, would you entertain a scenario where you would not have full control, like a joint venture with 50% ownership or even less than that, and giving up control, or is that not something that you would contemplate? I'm not going to make any comments about a scenario that is not on the table. Fair. Thank you. Thank you so much. Ladies and gentlemen, as a second reminder, if you'd like to ask a question, please press star one on your telephone keypad. The next question comes from the line of Charlotte Wood, calling from Schroders. Please go ahead. You might be on mute. We can't hear you at the moment. Can you hear me now? Yep. Oh, sorry. The first question I had was with regard to France and the SFR, sort of ongoing rumors about that being broken up. Could you see a scenario in which you would be interested in some part of SFR if that was to happen? That's my first question. The second one, I just wanted to ask about the IFER, the network tax. Does that change every year? Does the rate change, or was that just a significant increase that happened this year? Yeah, I would start with IFER. Actually, it increased by EUR 41 million this year. This is not due to an increase in the tax rate. It's due to the fact that we continue to develop our network, and you have a growth period during the first five years after having deployed your network, and therefore you pay less tax during the first five years, and then you pay the full amount after year five. This is what reflects the increase in IFER. Regarding your question regarding potential consolidation in France, clearly in France, our business model is based above all on organic growth, on innovation. We have a good visibility also on the improvement of the cash flow generation. We have enough scale. Clearly, a consolidation in France will require first an alignment of all the parties and probably the four telecom operators. I do not see one from an antitrust perspective that can buy 100% of SFR. Two, a clearance from the antitrust body. It is too early to draw any kind of conclusion. Just as a follow-up to that, and I'm not sure if you would say anything on it, but is there a discussion that is happening between all four parties with regard to that possible scenario? No, we have nothing to say at this stage regarding potential consolidation in France. Okay. Thank you very much. The next question comes from the line of Matthew Olaribigbe, calling from Barclays. Please go ahead. Yes, good afternoon. Thank you for the presentation. I had a first question about France, and I wanted to dive a bit on the commercial dynamics and the ARPU dynamics. I think a few quarters ago, you had said that you were probably more focused on value than volume, which was a slight change I felt at the time. Obviously, I mean, things don't move overnight, but when we look at Q1, volumes are softer than they were, but also ARPU trends. I realize it's a much more competitive market, but the question really is, how do you think about that value versus volume trade-off, and what are the tools for you to either improve both or one of these elements going forward? The second one was on Italy. As you flagged, your trends are much better than they were in Q4. Maybe Q4 was a bit of an anomaly, but still, I was wondering what was driving that. I think in terms of the competitive environment on mobile, at least on the mid to high end, it's not that competitive, but on the lower end, it remains with notably targeted offers to iliad. I was wondering why it was better now than Q4. Have you been able to maybe reduce churn that was picking up, or are you regaining market share on gross ads? It would be very helpful to understand what is behind that dynamic. Thank you. Benedetto Levi will answer on your question in Italy. Regarding France, you're right. It's getting a more and more competitive market. What we see is an increase in terms of broadband ARPU, so we know how to manage value. What we do also is that more and more we bundle broadband and mobile, and the decrease that you see on our mobile ARPU is purely technical, as the convergence discount is 100% applied to our mobile prices. Keep in mind also that we are committed, as you know, to keep price on mobile unchanged till 2027. The good news is that we're experiencing a strong traction on convergence in France, and this is at the heart of our strategy and value creation, as you can tell by the evolution of the cash flow. Benedetto? Sure. As Thomas mentioned at the beginning of the presentation, the market in Italy remains extremely competitive, and I would say irrational, with offers as low as EUR 14.99 for 200 GB, and operators offering also 5G for free to all their customer base. The market is still very, very competitive. I would say the reason behind our performance is still good, and again, we are a leader in net adds after 28 quarters in a row, is really the result of the investment and the choices we made over the last seven years in terms of network quality, in terms of transparency. Our NPS remains much higher than one of all the other competitors. I would say there's not one specific action we took. It's really the result of the action we implemented in the last years that explains why we keep growing, despite the fact that we have actually the highest prices of the market. Thank you very much. Ladies and gentlemen, as a final reminder, if you would like to ask a question, please press star one at any time on your telephone keypad. The next question comes from the line of Mark, who is calling from Citi. Please go ahead. Hi, guys. Just two questions here. One on Italy. Do you mind also just elaborating on the kind of the exit and perhaps the more recent months in terms of competitive dynamics? Is it largely the same, and are those sort of promotional offers from peers kind of persisting, or was this more kind of a beginning-of-year type initiative? Just keen to hear the kind of more current trending thoughts given the sort of two months into Q2. The other is just on capital allocation. You guys, I guess, have been always quite proactive in addressing near-term maturity. Would you say that will continue, do you think, or how are you looking at the debt structure over the next kind of year, given, as you say, you have only got one bond due before 2027? Just keen to understand if anything's changed or how you're looking at given the current market. Thanks. Thanks. I think that on Italy, Benedetto, just to give you some color on the competitive dynamic, we see a slight deterioration with a very, very aggressive win-back offer from WindTre at EUR 4.99 for 200 GB, and from Telecom Italia at EUR 4.99 for 100 GB. We saw also some win-back offer between Telecom Italia, WindTre, and Fastweb, which is kind of new. Regarding capital allocation, Thomas? Yeah, regarding debt structure, I mean, we have been very active over the past few months with several issuances, and I'm independent. We are now, I would say, in a safe situation with limited debt maturities over the next two to three years and a good liquidity position. I think it's a good position in which we are. We will continue to be proactive if market conditions are supportive, and we may envisage further financing deals, but there is no need or no urgency at this stage. We will be opportunistic. Got it. Do you mind if I just also just clarify? I guess you've talked about ESG, kind of just general corporate governance as well, and no real imminent refinement, and numbers again, really strong. Curious how you think about kind of IG status. Is that something that is top of mind at all or at all the focus, given a lot of your maturities being pushed out, and maybe there might be M&A in the medium term? Is there a leverage profile, you think, or are you speaking to rating agencies about that prospect? I think our leverage target is to stick to a three-times net debt over EBITDA at iliad Group and four times at iliad Holding. We are satisfied with this leverage target in the long term, and with that type of leverage, it's probably a way of potential for some upgrade in terms of rating, but probably not investment grade. As you may have noticed, the outlook with Moody's has just been moved from stable to positive. We have a good dialogue with our rating agency. We think that there is some upside potential in terms of rating, but we are not necessarily targeting an investment-grade rating for the moment. Got it. Thanks. The next question comes from the line of Stephane Beyazian calling from ODDO BHF. Please go ahead. Thank you. I've got two, if that's possible. The first one is just to follow up on the interesting comment you made about convergence. I was wondering if it's possible to have an idea of how much of your base is today convergent, and if you're more convergent potentially than some of the operators. I think you were probably one of the very first brands that started with linking Free mobile with the box, for instance, and how much more, therefore, you think, or potential you think you have in terms of bringing the two customer bases together. My second question is, I noticed that the month of April was even further more aggressive in terms of promotions in the French market. I was wondering if you can put any color around that, if you have some specific reading on what is driving that further competition in the market. Is it because SFR is now really focused on recovering commercially? Is it because of big after volume? Is it because potentially some players are trying to show their muscles ahead of possible talks later on this year regarding French consolidation? Any color would be interesting. Thank you. Okay, we start with convergence. I think you're right in saying that we were one of the first to launch a convergent strategy in France, and actually it's paying off. We have more than half of our subscribers that are now convergent. If we look at the revenue dynamic from our convergent customers, the ARPU is actually the revenue growth is approximately 10%. It is performing very well. Regarding the evolution of the competitiveness of the French market, you're right that there is a deterioration in April, but we consider that we have the right lineup of offers. We have also the right distribution platform to still be performant. What's super important, and maybe we should make some progress in terms of communication, is that there is no hidden cost or hidden price increase with our brand name, which is quite different with our competitors, and we should better expose that metric to the French market. Okay. And just a quick follow-up, if I can, on the convergence. More than 50% of your base, but do you think potentially you can go up to 80%? We have seen that in some of the markets in Belgium or in Spain, for instance. How much more upside do you think there is? There is upside, definitely. All right. Thank you. Have a good day. Ladies and gentlemen, there are no further questions. From the queue, as a final reminder, if you would like to ask a question, please press star one now. We have a follow-up question coming from Matthew Olaribigbe from Barclays. Please go ahead. No, thank you. Just a quick one. Actually, I wanted to touch on Poland. You said that the competitive or your performance was a bit below what you wanted. Could you explain what is behind that? Also, if you can give us a bit of color in terms of the competitive environment in mobile. Obviously, you're doing super well. Some of your peers are not doing as well, so I was wondering if it was because of your business exposure or because you're taking market share. Thank you. Yes. Now, in terms of local currency, our service revenue growth is 9% on the mobile side, which is really good, and it's a mix of volume, but also and mainly of value management. On the broadband side, we're up by 2%, and we consider that growth rate too low compared to the potential of the Play brand and the potential of the cross-selling with our big number one B2C mobile customer base. What we see in terms of handset, we saw a decrease in the level of handset revenue, but this is more or less a zero-sum margin business, so it's less relevant. Yes, the Polish market is competitive. It's slightly moving towards more convergence. Thank you. This concludes today's conference. I will hand it back to Thomas Reynaud for the conclusion for today's call. Thank you very much. Thank you so much for your attention. We will be meeting again at the end of August for our half-year results, and I hope that they will be as good as the Q1. Thank you. Ladies and gentlemen, thank you for joining today's call. You may now disconnect.