With the execution of its strategic plan, Altice Portugal strengthened its leadership in yet another quarter. The investment in the expansion of the Optical Fiber network, the Mobile Network and 5G, in parallel with the digital transformation, with the use of Artificial Intelligence, supports innovation and the diversification of the portfolio, maintaining high quality standards and sustainable operational growth.
The results for the 2nd quarter of 2024 showed growth in the main operating indicators, both compared to the previous quarter and to the same period in the previous year. The company strengthened its market position and continued to expand its Unique Customer Base, increasing the total number of Telco RGUs, maintaining its customer acquisition and record levels of disconnections. The company once again demonstrated its capacity for innovation and disruption in the market by launching, for the first time in the Portuguese and international market, an offer of Telco and Energy services, promoting cross-benefits between MEO Telecomunicações and MEO Energia, under the motto of Synergy.
Highlights of the results for the 2nd quarter of 2024
- The Company's revenues in the 2nd quarter of the year stood at 705M€, an increase of 4.7% (excluding Altice Labs), benefiting from growth of 3.6% in the Consumer Segment and 5.8% in the Enterprise Segment. Considering the overall contribution of Altice Labs, total revenue fell by -1.7%.
- Operating performance remained solid and growing in both Segments, as a result of the continued commitment to an innovative portfolio, convergence, synergy between products and services, quality of service and the security of networks and infrastructures.
- The total base of RGUs and Unique Customers continued to grow, standing at 14 million and 1.7 million, respectively, allowing us to continue to strengthen our leadership of the telecommunications market in Portugal.
- Total Fixed Services increased by 2.0% compared to the 2nd quarter of 2023, totaling 6.0 million, and the Subscription Television and Connectivity Service Customer Base grew by 2.9% and 3.1% respectively, both standing at 1.9 million.
- The Post-Paid Mobile Customer Base has already surpassed the 5 million mark and, driven by convergence, grew by 1.3% (+67 thousand customers) in the 2nd quarter of 2024 compared to the 1st quarter of 2024.
- EBITDA amounted to 252 million euros, an increase of 4.0% year-on-year, excluding Altice Labs. Considering Altice Labs' overall contribution, total EBITDA fell -0.9% year-on-year.
- Investment totaled 95 million euros in the 2nd quarter, reflecting the reinforcement of the 4G mobile network, which reaches 99.96% of the population, and the commitment to 5G, which at the end of the 2nd quarter had a population coverage rate of 95.8%.
Altice Portugal's Revenues (excluding Altice Labs) increased by 4.7% in the 2nd quarter of 2024, compared to the same period of the previous year, driven by solid growth in operating results, boosted by Fixed-Mobile convergence, the expansion of the Core Telco Customer Base, Non-Telco services and ARPU growth. The solid financial performance demonstrates the Company's dynamism in the process of transforming its revenue mix, with Non-Telco revenue streams reaching a very significant weight in Total Revenues.
Revenues in the Consumer Segment amounted to 348 million euros in the 2nd quarter of 2024, a year-on-year increase of 3.6%. Service Revenues increased by 3.1% as a result of the growth in the Customer Base and RGUs and the increase in ARPU, boosted by the better portfolio mix through convergence. Unique Customers in the Consumer Segment increased by 0.6% year-on-year at the end of the 2nd quarter, representing +10 thousand net additions, and reached a total of 1.7 million customers.
Fixed and Mobile Services RGUs amounted to 11 million and increased by 104 thousand year-on-year. These results reflect the leadership and quality of service recognized by customers. Diversification into new business areas, such as Energy, combined with a competitive offer of "green" energy with telecommunications benefits, ensure a more robust relationship with the Customer Base, promoting stronger Customer engagement. Revenues in the Business Segment in the 2nd quarter stood at 320 million euros, excluding Altice Labs, which represents an increase of +5.8% compared to the same quarter last year. In the SMB&SOHO, SME, Corporate and Wholesale Segments, the route and pace of growth was maintained as a result of the increase in the RGU and Corporate Customer Base, as well as the diversification of Non-Telco and International services.
Altice Labs' financial performance continues to be impacted by the decrease in sales of hardware and services to other geographies. EBITDA, excluding Altice Labs, increased by 4.0% compared to the 2nd quarter of 2023, sustained by the operational dynamics of expanding the Customer Base and RGUs, growth in the respective ARPU, portfolio diversification, new Non-Telco businesses, and discipline in the management of operating costs.
The company continued to strengthen and optimize its resources, the capacity of its infrastructure and the provision of innovative services. Therefore, CAPEX amounted to 95 million euros in the 2nd quarter of 2024, maintaining the expansion of the Optical Fiber Network, which has already reached 6.4 million homes, the reinforcement of the increase in coverage of the Mobile Network and the implementation of 5G technology, already with a coverage rate of 95.8% of the population at the end of the 2nd quarter of 2024. In 4G, the coverage rate of the national population in the 2nd quarter of 2024 was 99.96%.
Main events
MEO is the first operator in Portugal, and one of the first worldwide, to make WiFi 7 technology available to its customers, through a pilot project that precedes the commercial launch of the new Fiber X7 router. Developed by Altice Labs, the equipment promises greater speed, security and energy efficiency, as well as revolutionizing the market. May 21 marked the beginning of a new cycle, with MEO becoming the first and only operator in the world to launch a totally sustainable offer that integrates telecommunications and energy. MEO's new positioning, focused on its customers, is based on four pillars: Savings, Convenience, Simplicity and Sustainability.
The company launched Meo Net Segura home, a service that provides security for all devices connected to the home network, including mobile devices, computers, home IoT and smart home appliances. Meo Net Segura Mobile and Meo Net Segura home services provide customers with a comprehensive cybersecurity protection ecosystem, both inside and outside the home.
As far as the Business segment is concerned, the company has diversified its Telco and Non-Telco portfolio, enabling its customers to carry out and reinvent their businesses. Highlights include the launch of the AccessWnG service, to establish a secure private connection and backup access to customers' networks using 4G/5G technology, without any fixed structure behind it, and the launch of the Private Custom Network, a high-performance private mobile network designed to support critical operations in health, transportation, industry, etc.
For the first time in Portugal, MEO Empresas and CNN Portugal are starring in the first HD television broadcast, supported by a private 5G mobile network, during the final match of the Millennium Estoril Open.
MEO guaranteed the success of the first mobile vote in Portugal, having been at the heart of the success of yet another mega-operation, with an impact on one of the most important days for European democracy. More than 1,300 employees were assigned to the national project that ensured that the Portuguese could exercise their right to vote, for the first time, on the move, in any polling station set up on the day of the European Parliament Election.
In its report on telecommunications complaints for the 1st quarter of the year, ANACOM positions MEO as the operator with the lowest number of complaints per 1000 customers. In the reports published by ANACOM for the 1st quarter of 2024, MEO remains the leader in all Telecommunications Services. DECO Proteste elects MEO as the operator with the fastest mobile internet This seal of quality and security guarantee refers to one of the factors most appreciated by consumers, the speed of the mobile internet, which gives this distinction special importance.
The Portuguese chose MEO, which was once again awarded the title of "Best Store in Portugal" in the Telecommunications sector, for Grande Consumo, which honors the best in physical and digital retail.
MEO won three awards for excellence in customer experience at the Best European Customer Experience (BECX) in the Fixed Telephone Service and Pay-TV categories. The Partilha home project was recognized with the National Sustainability Award in the "Equality, Diversity and Equity" category. The distinction awarded to MEO reflects its commitment to inclusion, generational balance and equal opportunities.
A MEO Energia and SAPO received the "Recommended Brand 2024" distinction, awarded by Portal da Queixa and Consumers Trust, as a result of their focus on the customer and quality of service. MEO won Gold in the category of Best in Customer Service EMEA, a recognition by Contact Center World which placed MEO among the best customer relationship operators, reinforcing its status as a benchmark in the sector at international level. The result of the study by consultancy firm OnStrategy places MEO among the 25 most valuable brands in the country in 2024, standing out particularly in the telecommunications sector as the most valuable operator at national level.