Thank you for joining today's conference. Please stay connected. Your call will begin shortly. Hello, and welcome to the iliad Group H1 2025 Results Call. Please note this conference is being recorded, and for the duration of the call, your lines will be on listen-only. However, you'll have the opportunity to ask questions. This can be done by pressing star one on your telephone keypad to register your question. If you require assistance at any point, please press star zero, and you'll be connected to an operator. I will now hand you over to your host, Thomas Reynaud, CEO, to begin today's conference. Thank you, sir. Good afternoon, everyone. Good morning to those listening from the U.S. It's great to be back and to have the opportunity to talk to you. I'm here in Paris with Aude Durand, our Deputy CEO, with Thomas Kienzi, our Group CFO, and we'll have the chance also to have Nicolas Thomas, a French CEO, Ken Campbell in Warsaw, representing our Polish operator, PLAY, and Benedetto Levi in Milano for iliad Italia. I think that we had a very good first half, which is important for us in order to keep investing in the future. The number one topic that I'd like to address today is our growth profile. For more than three years now, iliad has been the fastest growing telecom group in Europe, and this is the case. One more time, this semester, we're the number one, not only in terms of revenue growth, but also in terms of profitability growth. This is a unique performance in a European market that is mature, in some cases saturated, and super competitive. I think that this is the singularity of our model, a model that managed to combine innovation and growth, profitability, investment, and yes, we accept, in some cases, in some markets, to invest more than our competitors. In a very concrete way, what does it mean to be number one in terms of growth? I will start with France. In France, we are the only operator among the four national players to grow in terms of revenue. Even if we see a slowdown of that growth, we are the only one to grow, and that's important for us. We've been very active during the first six months with the launch of two new successful Freebox, Freebox Pop! S S on the one side for the retail market, and the new generation of Freebox Pop. In Poland, good quarter too. Service revenue is up by 7%, and if we look at mobile service revenue, up by 10%, and PLAY has been the portability leader now for the early three years, and this is still the case for the first half of 2025. In Italy, finally, we've been number one now from day one, I would say, since 2018. This quarter, once again, we are number one for the 29th quarter in a row, 87 months without discontinuity. Really, congratulations to our Italian team, to the team of Benedetto. It's an amazing achievement. This is what you can see on that slide. You even see an acceleration of the commercial performance over the last quarter, so it's great visibility. As anticipated, or maybe it was not anticipated by some of our competitors, 2025 is a turning point in terms of cash flow generation for our mobile activities, + 73% compared to last year, which means that we generated just in the first six months of 2025, EUR 91 million. Everywhere we operate, the message is the same. We want to grow. Clearly, this is our mindset. Behind these good numbers, let's not forget what really matters to us. This is the customer satisfaction of our 61 million customers in Europe. Customer trust is clearly our strongest asset. In France, for example, we were ranked number one in terms of subscriber satisfaction by the telecom regulator, ARCEP. In Poland, our Net Promoter Score reached its highest level in four years. We still need to make some progress on broadband, and we're working on it. In Italy, we continue to hold the best NPS in the market, and really, iliad Italia is the love brand of the Italian market. I have the sentiment that the more aggressive the win-back offers from our competitors are, the stronger our brand and our NPS is there. Of course, behind these win-back offers, there is a lack, in a certain way, I would say, of trust in the other brands. Clearly, I would say that customer satisfaction is the greatest victory of this H1. We've been also quite proactive in terms of digital infrastructures. In Poland, we reinforced our wholesale leadership with the acquisition of Vectra Assets, extending our fiber footprint. Another very important topic for us, we defined a new ambition for our data center platform. We will invest EUR 2.5 billion, and clearly, our ambition is to become Europe's leading data center platform. We had good news this summer. On the one side, on our capability to extend one of our largest data centers in France, and also to secure what we call power land in terms of access to electricity for a project of a gigafactory dedicated to AI. On the scale way, we are accelerating in cloud, and in a certain way, we are helped by the geopolitical context. Clearly, we do believe that Europe needs a sovereign digital ecosystem. Thomas will come back on it on our economic model, but when I'm looking at the H1 figures, EBITDA + 10%, operating free cash flow plus 20%, and we generated EUR 940 million of equity free cash flow after tax, after interest, 55% of it coming from our operations, and 45% from the net proceeds of 50% of the sale of OpCore. What we're trying to do, iliad is a growth story, but we're also building an international telecom group step by step, with discipline, trying to keep at the same time, thanks to the leadership of Xavier Niel, our entrepreneurial mindset. At the level of iliad, we are now the number five telecom operator in Europe. We operate in eight countries with 62 million subscribers. At the level of the mother company, iliad Holding, we operate directly or indirectly in 19 countries, and we serve 113 million subscribers. Clearly, we have a great foundation. One, we have great visibility, scale, good strategic position in the country where we operate directly, and especially in France and in Poland. Two, we also have numerous strategic stakes in different telecom operators. We are the reference shareholder of Tele2 in Sweden. We are the number one shareholder of the Latin America operator, Millicom. We are also one of the two controlling shareholders of the Irish operator, Air. We have one fiber core in France, one fiber core in Poland. Clearly, the value of these assets has strongly appreciated. If you look at the share price of Tele2 and Millicom, these share prices have doubled since our investment. We can say that over the last four or five years, we have made good investments. What is important for our organization, this stake in various telecom operators secures a net stream of revenue, a net stream of cash through their dividend. Finally, we have a super strong balance sheet. Leverage is low at the OpCore 2.3, and also at the OLCO 3.4. Clearly, it gives us a great strategic flexibility in order to seize opportunity for consolidation if one day it happens in Europe, or in terms of geographical expansion. Thomas, the floor is yours. Thank you, Thomas, and good afternoon, everyone. I will walk you through a strong set of results. Starting with top-line performance, we delivered a solid organic service revenue growth of 4.3% over the semesters, once again positioning us as the fastest growing major telco operator in Europe. This performance reflects our ability to grow in mature and highly competitive markets while maintaining a disciplined balance between volume and value. Looking at the details by geography, in France, service revenue increased by 2.4% year on year. This is a significant achievement as iliad is the only national operator in France to grow its service revenue this semester. In Italy, we delivered 9.4% growth in service revenue, driven by sustained commercial momentum. As Thomas said, iliad Italia remains the market leader in Net Ads for the 29th consecutive quarter. In Poland, our service revenue grew by 7.2% with continued strength, in particular on mobile segments. On a constant currency basis, growth reached 5.1%, reflecting PLAY's resilient business model and our successful more-for-more strategy. Turning now to consolidated revenues, total group revenue for H1 reached almost EUR 5.1 billion, an increase of 3.8% compared to the same period last year. Out of this total, service revenue represented EUR 4.7 billion, and equipment revenues totaled slightly less than EUR 400 million, slightly down compared to last year, reflecting a general market tendency for equipment sales. As you know, equipment sales have a limited impact on EBITDA due to the lower margin structure. Focusing now on profitability, first half has been very strong in terms of growth. It has been also very strong in terms of profitability improvement. Our group EBITDA reached EUR 2.05 billion, an increase of 10% year on year, which was driven by our operating leverage and by our strong cost disciplines across all our geographies. Our group EBITDA margin reached a new record high at 40.2%, representing a 230 basis point increase compared to last year. More importantly, the EBITDA margin increased at group level, but it was also the case for each of our geographies. In France, our EBITDA grew by 6% to EUR 1.3 billion. In Italy, our EBITDA grew by 30% to almost EUR 200 million. In Poland, our EBITDA increased by 14% to EUR 544 million. Profitability is improving across the board, which is a clear sign that our model is performing and delivering results. Let's turn now to CapEx. Total group CapEx, excluding Spectrum, amounted to EUR 878 million in H1, relatively stable compared to last year. This reflects our disciplined approach to investment as we continue to optimize our spending while maintaining strong network development and investing strategically in digital infrastructure, fiber, cloud, and AI. In France, our CapEx amounted to EUR 629 million, with investment focused on 5G densification, B2B infrastructure, and fiber. In Italy, our CapEx increased to EUR 131 million, driven by mobile networks expansion and the ongoing rollout of our fiber footprint. In Poland, our CapEx decreased to EUR 118 million, down 11% compared to last year, as PLAY normalizes its investment cycle following recent network upgrades. This brings us to operating free cash flow, the true engine of our financial strengths. Here, also, we had a strong performance in H1 with a group operating free cash flow which reached EUR 1.7 billion, representing an increase of 20% compared to last year. The increase was driven by the combination of a higher EBITDA and stable CapEx across our markets. Here again, as you can see, the improvement in operating free cash flow has been fueled by all our geographies, with operating free cash flow in France up 13% to EUR 682 million, operating free cash flow in Poland reaching EUR 426 million, up 24% compared to last year, and finally, with our mobile operation in Italy generating EUR 91 million over the semester, which represents a 73% increase. If we put this performance into perspective, what you can see on the next slide is that our performance has steadily improved over the past six years. Since 2020, our operating free cash flow has grown dramatically from EUR 31 million in H1 2020 to almost EUR 1.2 billion this semester. This upward trajectory reflects the maturation of our business model as we have moved from a high investment phase to now a new phase of high cash generation without sacrificing growth. Based on these H1 results and based on this trajectory, we are pleased to confirm our full-year operating free cash flow target of EUR 2 billion for the year. We are on track, and we are highly confident in our ability to deliver it. Finally, let's look at our equity free cash flow. In H1 2025, our recurring equity free cash flow, excluding Spectrum, reached EUR 621 million, which is a significant increase of EUR 401 million compared to last year. Additionally, we received EUR 440 million from the disposal of 50% of OpCore. In total, our equity free cash flow over the semester reached EUR 942 million, which is a very strong performance. It's important to keep in mind that our recurring equity free cash flow in H2 will be slightly lower than in H1 due to several factors. First of all, we have traditionally more CapEx in H2 than in H1 due to some phasing effects. Secondly, in H1, we benefited from EUR 100 million of dividends from our associates that we won't see in H2. The last element to have in mind for H2 is that we will have an exceptional corporate income tax in France to be paid in defect to slightly more than EUR 1 million. All that will impact our second half of the year cash flow generation. Turning now to our financial position, thanks to the strong cash flow generation, our leverage ratio improved significantly to 2.3x the EBITDA. This is a significant milestone and a clear sign of our delivering momentum. We also have a strong liquidity position with EUR 1.5 billion in cash and EUR 2.5 billion in on-road credit facility, which ensures strong liquidity and financial flexibility. It is important also to mention that the three major rating agencies, Fitch, Moody's, and S&P, have both upgraded our outlook to positive, reflecting their growing confidence in our strategy, in our execution, and also in our financial discipline. Finally, at iliad Holding level, the leverage ratio stood at 3.4 x at the end of June, down from 3.8x. As you can see on the slide, we have a very solid debt maturity profile with no need before 2028. To conclude, in H1, we deliver strong revenue growth, margin expansion, and record free cash flow. We outperform in all our markets, our leverage is down, and our financial structure is strengthening. We are confident in our ability to deliver our annual target of EUR 2 billion of operating free cash flow at group level. Thank you, and we are now available for Q&A. Thank you, sir. We've already got quite a few hands raised in queue for questions. As a reminder, if you would like to ask a question, please press star one on your telephone keypad. If you change your mind and want to withdraw your question, it's star two. Please ensure your lines are unmuted locally as you'll be prompted when to ask your question. The first question today comes from a line of Matthieu Robillard from Barclays. Please go ahead. Yes. Good afternoon. Thank you for the presentation. I had a few questions. The first one was on the comment, Thomas, you made about the balance sheet flexibility and the opportunity it creates for consolidation or expansion into more geographies. I was trying to put that in the context of your comments earlier today that you would not be pursuing M&A opportunities with TI in Italy. Does it mean that it is that for now and it could change? Is it that you're looking at other deals that are more likely, like maybe France? The second question was in terms of your reporting. There's a slight change. You don't report ARPUs anymore. You've kind of rounded up the subscriber numbers. I was wondering if it was a sign that you were looking at the business slightly differently. You put a lot of focus on the very strong performance on EBITDA and free cash flow. Is it a sign that maybe the growth coming ahead is more focused on profitability rather than top line? Or am I reading too much into that? Coming back to Italy, no deal there. You're still growing strongly, but you're still far away from earning a good royalty. How do you see achieving a good royalty in Italy? Do you think you need to be more aggressive? Or you have other levers to improve the profitability of the business? Thank you. Thank you. I will start with the first question. My comment on the balance sheet of the company and strategic flexibility it gave us was a general comment. At the beginning of 2018, we were in one country. Today, we are in 17 countries. The general idea is that we're doing things step by step with a lot of financial discipline, with a very industrial focus. If there are opportunities, of course, we will seize them. We're not going to do any transaction or any acquisition just for the sake of putting a new flag in a new country. Each time there is an opportunity for us to bring something to the local market and to create value, we will do it if it makes sense for iliad in terms of value creation and if this is in line with our balance sheet guidelines. Regarding my comment on consolidation in Italy, what I said exactly is that there have been no more discussions with Telecom Italia since the beginning of April. We had discussions in the past and serious ones for a potential tie-up. This discussion will not resume. Clearly, when I look at the first half of 2025, iliad Italia is strengthening its position. We see a net acceleration of the commercial momentum. As expected, I will insist, as expected, 2025 is the natural turning point in terms of cash flow generation. In terms of royalty return on capital employed in the past, but what I see today is that iliad Italia is a source of generation of cash flow of OFCF for iliad in that global equation of a pan-European telecom group. Benedetto, maybe you want to say a few words regarding the dynamic that you see in Italy and all the great actions that you took in order to achieve that commercial performance? Sure. So indeed, as you mentioned, the Italian market remains extremely competitive. There are basically all the incumbents offering plans at less than EUR 5 or EUR 6 per month. What we did actually in the last quarter, but it's been the same strategy since now, I would say, seven years, is to focus on the quality of our networks and most of all on the overall satisfaction of our users. We have by far the highest NPS of the market, both on mobile and on fiber. This allowed us to be the leader in terms of Net Ads for the 29th quarter in a row and actually to see an acceleration in terms of Net Ads despite an acceleration in terms of the, let's say, aggressiveness of the offers in the market. We believe we have a very good basis to keep growing even in this very challenging market. The more aggressive our competitors are in terms of win-back, the more successful we are in terms of commercial Net Ads. Thomas. Regarding reporting and priorities, I think our priorities have not changed. We want to continue to grow, but our priority is to grow in a profitable way and to generate cash. We are, of course, focused on revenue growth, but more importantly, we are focused on EBITDA and operating free cash flow growth. This is really on what we focus the most. You have the details in the appendices of the presentation of the SEB by geography and by quarter. You know we will continue to disclose the SEB by quarter, and you will be able to assess our commercial dynamic. Regarding ARPU, that's true. We have not disclosed it this quarter for one reason. This is because we are more and more focused on convergence, and therefore, looking separately at fixed and mobile ARPU is not meaningful in our view. You can deduce it, of course, because you have service revenues and you have the SEBs. However, I can comment it if you want, and I can tell you that the ARPU in France in Q2 was stable compared to Q1. In Poland, they were up 1% compared to previous quarters. The idea is not to change our reporting, and our priority has not changed, but the main target of the group is to grow profitably and generate cash. Thank you very much. The next question comes from a line of Joshua Mills from BNP Paribas Exane. Please go ahead. Hi, guys. Thank you for taking the question. I just wanted to split in two to talk on the Italian consolidation debates and then secondly a bit on France. On Italy, I'm just trying to square the comments you make about we will take any opportunity that creates value in our markets with the reference there to the fact that the talks you had with Telecom Italia will not come back. Can you give us an indication or some color on what it was that led to those talks ending? Was it just about valuation, or was there a debate about control of the company, regulation risk, etc.? I'm just trying to understand whether there is a scenario where this could come back in the future under different terms. If not, whether you'd be interested in pursuing consolidation deals with other players in the markets, namely WINDTRE or Swisscom. That's the first bucket of questions. Secondly, on French consolidation, I think you talked this morning about the fact that talks are at a very early stage. Could you just maybe remind us of what your strategic priorities would be if any deal might materialize and how you think this could help iliad Group in terms of its overall asset ownership and what assets you might be most interested in? Thank you. Thanks. Yeah, you know right now, I sat down in the Paris office. I have in front of me Nicolas Thomas. On my right, Aude, our Deputy CEO. On my left, Thomas Kienzi, our Group CFO. I can tell you that every morning when we see each other, when we have discussions around the coffee machine, our number one topic, our number two one is not consolidation. It's to grow the business. It's customer satisfaction. How are we going to improve customer assistance, like taking a deep transformation of our assistants in France from a super centralized assistance organized around the call center to a decentralized one? This is the topic that is on our mind and not consolidation. Just to come back on Italy, I will not comment a combination, a transaction that will never happen. Since 2018, we've been quite consistent because we had this discussion around the consolidation, this question from the investor community around consolidation in 2018 and 2019. The main scenario has been and is still a four-player market in Italy. What is important for us is to keep on growing in terms of revenue and to generate cash flow from our mobile activities. The good news is that Italy is now self-financed, and we will keep on growing the business. The next question comes from a line of Molly Whitcomb from Goldman Sachs. Please go ahead. Hi. Good morning. Firstly, I have a quick question on your margin improvement in France. Obviously, that's improved quite a lot versus previous quarters. I was just wondering, could you give us a little bit more color on the moving parts, on what's driving that, and how much you feel there's capacity for further efficiencies? My second question is just on the competitive environment in France. One of your competitors described the mobile market as fiercely competitive. I'm just wondering if that matches your experience and how you're seeing more broadly the competitive environment across both mobile and Fixed. Thank you. I will start with your first question regarding margin improvement in France. I think it reflects, first of all, our operating leverage and strong cost discipline. Compared to Q1, you also have to keep in mind that in Q1, we had the accounting of the IFRS tax, which amounted to EUR 140 million on a full-year basis, and everything is accounted in Q1. This explains another part of the increase in EBITDA from Q1 to Q2. More generally, it's really discipline and operating leverage, which explains the increase in profitability in France in Q2 versus Q1. On the competitive environment in France, it's still a tough competition for sure. There is no change, I would say, in the way we conduct the business in France, in fact. We keep enriching the offers. We keep striking the right balance between volume and value. We keep innovating. We've launched two boxes during the first semester, one for the businesses and the Freebox Pop! S for the consumer market. We keep rolling out the new assistance services that Thomas just mentioned. We have the right results, in fact, the results we are looking for. First is satisfaction of the subscriber, and the regulator in its study confirmed that we were number one in terms of satisfaction of the SEBs in France. It's the right value. The right value is we are the only operator among the four MNOs in France having a positive organic revenues growth. We have also keep growing the EBITDA and the EBITDA minus CapEx in line with what we expect. In the coming quarter, we will stick to this strategy, this approach, keep innovating, and I'm sure that we will have obtained the results that we are looking for. Very clear. I was wondering, can I just follow up on consolidation in France? You've said that you're in very preliminary talks. Some of your competitors have said maybe to get a deal done, it would take 18 months to a couple of years. Is that the kind of timeline that you guys are thinking about when you're sitting down for discussions? Just a little bit of color on that would be great. Thank you. No, we don't have any timeline in mind. What I can tell you is that consolidation in France is an opportunity for us to grow our model, clearly. We had some discussions in June at a very preliminary stage. What I can tell you is that the industrial complexity of such an operation, of such a combination, should not be underestimated. I have no further comments on the topic. Thank you very much. Thank you. Before proceeding to the next question, a final reminder. If you would like to ask a question, please press star one on your keypad. The next question comes from a line of Akhil Datani from JP Morgan. Please go ahead. Hi. Good afternoon. Thanks for taking the questions. I've got a few, please. If I can start maybe with the French competitive environment. We've seen all the operators in France report slowing growth rates. As you said, you are the only operator still in positive territory. The visibility at this stage does seem to be a bit lower. I'd love to understand how you're thinking about the way competition is evolving. Orange is seemingly indicated that they think trends will stabilize in H2, but Bouygues has actually trimmed their guidance, and it's very unclear whether things could get worse or not. Any sort of color from you in terms of what you're seeing and how you think about what that all means for H2 would be really helpful. The second one on M&A in France, and I'm sure there's limits on what you can say here, but I guess there's a few factual things and a few maybe comments that would be useful for us to get. The press reports have been pretty intense over the last couple of months, indicating that there have been a lot of meetings between operators through July. I think you referenced in your answer to the previous question that you did have some meetings in June. Just to understand, are these meetings with SFR? Are there meetings with your peers? Just to sort of understand what is the framework in which these conversations are going and who exactly are you meeting? Are regulatory parties or politicians involved, or is this purely operators? I'll leave it there. Thanks very much. Thanks for your question. Regarding the French consolidation, I will restate what I said. The discussions were at a very preliminary stage. When discussions are at a very preliminary stage, there is nothing to add, basically. Nicolas, regarding the French competitive environment? For sure, the French competitive environment is very fierce, very strong. There are some very aggressive offers, both on mobile and fixed. Some MNOs are having sometimes maybe an irrational behavior. In the end, what has been the force of iliad and Free in the past 25 years is that we stick to our roadmap, and that's it. We have the offers we want to have, and we do not look that much at what competitors do. Otherwise, we would probably have a low-cost second brand or reprice our backbook, and that's not what we do. We stick to a few values, a simple strategy, and it brings its results. Thank you. Can I just ask, ignoring your competitors, for H2, what are your general thoughts? Do you think growth will stay positive for iliad, or is it hard to comment? No, it's not hard to comment. I can tell you that growth will stay positive for iliad. Clearly, we get good visibility in France, in Poland, in Italy, and the revenues of iliad will keep on growing. What Nicolas said is super important. Our mindset is a long-term mindset. Our shareholder, Xavier Niel, took a bold decision to take private the company to be an independent international telecom group with a long-term view, and this is really what matters to us. Thanks very much. The next question comes from a line of Ottavio Odorizio from Bernstein. Please go ahead. Hi. Good afternoon. Thank you for taking a couple of questions. My question focuses on Italy and not on M&A, but on your business. Compared with France, you're very subscaling fixed. Now, if someone looks from the distance, it's the ideal scenario for you. You've got two wholesale providers of fiber competing against one another. You have a very strong brand, particularly in the value segments. You have a very compelling offer, but still, you're struggling to make inroads in terms of Net Ads. I was just wondering if you can elaborate on the reasons why, after three years and the quite aggressive marketing, you're still not gaining scale. Is it an issue on the coverage that's been provided to you in terms of the wholesale rates or anything else? The second question is related to the business market in Italy. In France, you've done well to shy away from business. It's not been a great story for Orange. In Italy, it looks to be pretty good, particularly given all the subsidies being given into the SMEs. I know that it's not your DNA, the business, but is it something a segment that you probably look at in your marketing already, or is it something that potentially you can see as an opportunity to enter? Thanks. Thank you for your question. Regarding the first topic, which is broadband in Italy, we made a strong decision a few years ago, two or three years ago, just to concentrate on the fiber market. The specificity of the Italian market, it's a market where you have two wholesale providers, which means that scale in the ramp-up is less critical than in other countries. We rely on these two wholesale suppliers. When I look at Q1 and Q2, we're number one in terms of fiber and Net Ads in Q2 in front of Fastweb, in front of Telecom Italia. I totally agree with you. We want to do better, and we do hope that we will do better. Benedetto, any comment on the other question? Yeah, sure. If I may add, on fiber, we reach around 7% market share in three years, and for sure, the potential is much bigger, but it's a much, much smaller market than in France. We are actually recovering from a big delay in terms of FTTH. First of all, coverage, and then pick up. As Thomas said, we are the leader now among the four main players in the market. We see a lot more potential in FTTH. In B2B, we are actually at a very early stage. We launched for the moment a mobile offer targeting only small and medium companies, but for sure, we see a big potential there as well. Our brand, from all the research we make, is actually also very appreciated for small, medium, and actually more and more from big businesses as well. We have some plans to definitely expand also on the B2B market where we are really still very small, but potential is very big there as well. There are no further questions, so I'll hand back to you, host, to conclude today's call. Thank you so much for your attention. I think that the key takeaway is, one, our leadership in terms of growth. When I say growth, it's in terms of revenue and profitability. Two, a really good economic KPI on H1, especially in Italy in terms of cash generation. Clearly, a strong financial balance sheet gives us plenty of flexibility and opportunity to address. Thank you so much, and talk to you in three months. Thank you for joining today's call. You may now disconnect your line.