Financial Performance Worsens Amid Aggressive Pricing Strategy
Altice France, the parent company of telecommunications operator SFR, announced a significant decline in its third-quarter sales and operating results. Revenue fell by more than 9% to €2.3 billion, while operating profit saw an even steeper drop of over 11% to €764 million.
The company, owned by billionaire Patrick Drahi, is facing pressure from its aggressive pricing strategy, which has been eroding profit margins. Despite being pursued by competitors Orange, Bouygues Telecom, and Free, Altice France’s financial performance continues to deteriorate.
Mixed Results in Customer Base
The operator did see one positive development in its mobile phone segment, gaining 44,000 new subscribers during the third quarter and ending a period of customer losses. However, this was offset by the departure of 32,000 fixed internet subscribers during the same period.
Competitors Eye Acquisition Opportunities
Rival companies are positioning themselves to take advantage of Altice France’s financial challenges. Industry observers suggest that the continued decline might pressure Drahi to reconsider acquisition offers that he has previously rejected as insufficient.
Potential buyers had previously valued the operator at approximately €17 billion, but sources indicate this valuation is likely to decrease as the company’s financial trajectory worsens. One industry insider warned that “the offer will not be the same in a year,” suggesting that Altice France’s negotiating position is weakening over time.
