Altice Portugal strengthens its market leadership, having been distinguished as the operator with the best mobile coverage and the fastest mobile internet in Portugal. This is the result of the strong investment in the expansion of the Mobile Network, 5G and the Optical Fiber Network, allowing the diversification of the portfolio of products and services, and guaranteeing high standards of service quality.
Altice Portugal has 6.5 million homes with optical fiber and a 5G network population coverage of 95.8%. Altice Portugal maintained the positive evolution of its main operating indicators in the third quarter of 2024, with a 1.7% increase in Fixed Services RGUs and a 4.9% increase in Post-Paid Mobile Services compared to the same period of the previous year. This trajectory has been based on synergies and the diversification of the service portfolio. An example of this is MEO Energia, which is now one of the players in the energy sector in Portugal. With very competitive tariffs, it combines energy from 100% renewable sources with benefits in the telecommunications package. In the 3rd quarter of 2024, 112,000 customers were reached who use MEO's 100% green energy on a daily basis.
Highlights of the results for the 3rd quarter of 2024:
Total revenues
- Revenues in the third quarter of the year stood at 704 million euros, an increase of 1.7% compared to the same period last year, benefiting from increases of 5.9% in the Consumer Segment and 5.8% in the Business Services Segment, the latter excluding the global contribution of Altice Labs, or -2.4% penalized by the decrease in sales of equipment and hardware to other geographies by Altice Labs.
- In the nine months to date and excluding the decrease in Altice Labs sales, Revenues continued to grow by 4.6% compared to the same period last year, due to the factors described above, revealing the solid performance of core telecommunications services and portfolio diversification, especially in the Energy business.
- There was a robust and positive operating performance in all Segments, as a result of the continued commitment to a rich and innovative portfolio, fixed-mobile convergence, synergy between products and services, high quality of service standards, strong investment in network expansion and coverage, as well as network and infrastructure security. (1) Proforma of Geodesia's operations in international territories.
- The total RGU base for fixed and mobile services continued to grow, standing at 14 million. The same happened with the total number of Unique Customers in the Consumer Segment, which reached 1.7 million. These growths resulted in the reinforcement of the leadership of the Telecommunications market in Portugal.
- Total Fixed Services increased by 1.7% compared to the 3rd quarter of 2023, totaling 6.0 million, and the Subscription Television and Connectivity Service Customer Base grew by 2.7% and 3.0% respectively, both standing at 1.9 million.
- The Post-Paid Mobile Customer Base reached 5.3 million and, driven by convergence, grew by 0.6% (+33 thousand customers) in the 3rd quarter of 2024 compared to the 2nd quarter of 2024. Consumer Segment Revenues
- Revenues from the Consumer Segment amounted to 361 million euros in the 3rd quarter of 2024, a year-on-year increase of 5.9%.
- Service Revenues increased by 4.9% as a result of the growth in the Customer Base and the increase in ARPU, boosted by the better portfolio mix through convergence.
- Unique Customers in the Consumer Segment at the end of the 3rd quarter increased by 0.5% year-on-year, representing +8 thousand net additions, reaching a total of 1.7 million customers. Fixed and Mobile Services RGUs amounted to 11 million. These results reflect the leadership and quality of service recognized by customers.
- In the third quarter of 2024, MEO Energia, a player in the energy sector in Portugal, reached 112,000 customers. The formula for success is to offer a competitive tariff that combines energy from 100% renewable sources with benefits in telecommunications packages. This is confirmation that the expansion into new business areas, such as Energy, strengthens the commitment to the customer base. Business Services Segment Revenues
- Revenues from the Business Services Segment in the 3rd quarter stood at 343 million euros, representing growth of 5.8% compared to the same quarter of the previous year. Included in this segment are Telco and Non-Telco services from the SMB&SOHO, SME and Corporate sub-segments, which maintained a steady growth trajectory leveraged on the increase in the RGU and Business Customer base and the constant diversification of the portfolio. In addition, the positive performance of the Wholesale business also grew as a result of the higher volume of Roaming traffic and the leasing of new core infrastructures to other operators. Considering the evolution of Altice Labs already described, overall Business Services revenue decreased by 2.4% YoY. EBITDA
- EBITDA reached 258 million euros in the 3rd quarter of 2024, practically the same as in the same period of the previous year (-0.3%, excluding the performance of Altice Labs), sustained by the operational dynamics of expanding the Customer Base and RGUs, the growth of the respective ARPU, the diversification of the portfolio, new Non-Telco businesses, and discipline and efficiency in the management of operating costs. Considering the evolution of Altice Labs already described, EBITDA decreased by 4.5% YoY.
- In the 9 months of the year, EBITDA increased by 4.5% (excluding Altice Labs' financial performance) and grew slightly YoY (+0.1%), despite lower sales of equipment and hardware from Altice Labs. CAPEX
- Investment amounted to 100 million euros in the 3rd quarter of 2024, maintaining the focus on expanding the Optical Fiber Network - which has already reached 6.5 million homes - strengthening the increase in coverage of the Mobile Network and the implementation of 5G technology, which already has a coverage rate of 95.8% of the population. In 4G, the coverage rate of the national population in the 3rd quarter of 2024 was 99.97%.
Main events
MEO reaffirms its leadership in the electronic communications sector by being awarded "Best Mobile Coverage" in Portugal by Ookla®, the world leader in network intelligence. After being elected by DECO PROteste as the operator with the fastest mobile internet, MEO consolidates its technological leadership and its commitment to the Portuguese as the operator with the best mobile network at national level.
In the reports published by ANACOM for the second quarter of 2024, MEO remains the electronic communications service provider with the lowest number of complaints and the leader in all telecommunications services. MEO and NOKIA announced the multi-year contract that will modernize the radio access network infrastructure and enhance 5G capabilities, guaranteeing the best network performance and reliability, enabling the implementation of advanced solutions for all consumers.
Altice Labs has achieved new international recognition, this time with a patent granted by the United States Patent and Trademark Office. Entitled "Dual GPON Small Form-Factor Pluggable Optical Module", the patent refers to a compact and innovative optical module that doubles the capacity of GPON ports in telecommunications equipment. This innovation responds to the growing demand for greater capacity and speed in telecommunications networks, driven by the exponential increase in users and connected devices. This achievement reinforces Altice Labs' position at the forefront of innovation in telecommunications and the development of advanced technologies, key to the continuous provision of effective and robust solutions, responding to the needs of a constantly evolving market.
The inauguration of TUMO Lisboa, the second Creative Technologies Centre in Portugal, located in the Beato Innovation District - Factory Lisboa, an innovative learning space, once again counts MEO and the Altice Foundation as partners, marking a significant step in promoting education for young people in Portugal, allowing them to develop skills in technology and creativity through a collaborative and personalized teaching model, free of charge.
In September, MEO welcomed 60 young graduates and master's students to the 2024 edition of the DarWiN trainee program. Over the course of 12 months, they will work in various areas such as Engineering, Information Technology, Data Science, Management or Economics, having contact with various brands that make up the group's universe, such as SAPO, Moche, MEO Empresas and MEO Energia.