Page 189 - 2012 Annual Report

189
VIVENDI l 2012 l Annual Report
FINANCIAL REPORT – CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE
CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS –
STATUTORY FINANCIAL STATEMENTS 4
4
I - 2012 FINANCIAL REPORT
SECTION 4 BUSINESS SEGMENT PERFORMANCE ANALYSIS
REVENUES AND EBITA
SFR revenues(1) amounted to €11,288 million, a 7.3% decrease compared
to 2011 due to the progressive impact of price cuts related to the
competitive environment and to price cuts imposed by the regulators(2) .
Excluding the impact of these regulatory decisions, revenues decreased
by 3.3%.
Mobile(3) revenues amounted to €7,516 million, an 11.1% decrease
compared to 2011.
During the fourth quarter, SFR’s postpaid mobile customer base increased
by 109,000 additions. At the end of 2012, SFR’s postpaid mobile customer
base reached 16.563 million, stable compared to 2011. The customer mix
(the percentage of the number of postpaid customers in the total customer
base) amounted to 80.1%, a 2.9 percentage point increase year-on-year.
SFR’s total mobile customer base reached 20.690 million. Mobile Internet
usage continued to progress, with 49% of SFR customers equipped with a
smartphone (41% at the end of 2011).
SFR became the first French operator to open the 4G network to the mass
market and enterprises. After Lyon on November 29, 2012, the 4G network
was launched in Montpellier and Paris-La Défense. Four additional cities
will open in the first half 2013. This offer includes the availability of a
wide range of compatible equipment and is based on “Formules Carrées”
packages.
SFR also introduced a new pricing policy in January 2013 offering the best
value/price ratio on the market both for its low-cost offers and its premium
offers, the latter remaining the choice of the majority in the French market.
Broadband Internet and fixed revenues(3) amounted to €3,963 million,
a 0.9% decrease compared to 2011, and a 0.3% increase excluding
the impact of regulated price cuts.
At the end of 2012, the postpaid broadband Internet residential customer
base reached 5.075 million, with 56,000 net additions(4) year-on-year.
The customer base for the quadruple play offer (“Multi-Pack de SFR”)
reached 1.8 million at the end of 2012.
SFR’s EBITDA amounted to €3,299 million, a 13.2% decrease compared to
2011. Excluding negative and positive non-recurring items (-€15 million in
2012 and +€93 million in 2011), EBITDA decreased by 10.6%.
EBITA amounted to €1,600 million, a 29.8% decrease. Excluding negative
and positive non-recurring items and restructuring charges, EBITA
decreased by 18.0%.
In 2012, SFR launched an adaptation plan while continuing to invest in 4G
and fiber infrastructures and adapt its organization to changing market
conditions. In November, SFR announced a voluntary redundancy plan with
a target of 856 net departures.
CASH FLOW FROM OPERATIONS (CFFO)
SFR’s cash flow from operations amounted to €693 million, a 65.9%
decrease compared to 2011. This change notably included the impact
of the acquisition of 4G mobile spectrum for €1,065 million in 2012,
compared to €150 million in 2011. Excluding these impacts, cash flow
from operations amounted to €1,758 million, compared to €2,182 million
in 2011, a €424 million decrease (-19.4%), primarily due to the decrease in
EBITDA after changes in net working capital (-€407 million).
(1) Following the disposal of 100% of Débitel France SA to La Poste Telecom SAS, Débitel France SA, with a customer base of 290,000 has been excluded from the consolidation
perimeter since March 1, 2011.
(2) Tariff cuts imposed by regulatory decision:
i) 33% decrease in mobile voice termination regulated price on July 1, 2011, a 25% additional decrease on January 1, 2012 and a further 33% decrease on July 1, 2012;
ii) 25% decrease in SMS termination regulated price on July 1, 2011 and a 33% additional decrease on July 1, 2012. In addition to asymmetric tariff in favor of Free;
iii) Roaming tariff cuts on July 1, 2011 and July 1, 2012; and
iv) 40% decrease in fixed voice termination regulated price on October 1, 2011 and a 50% additional decrease on July 1, 2012.
(3) Mobile revenues and broadband Internet and fixed revenues are determined as revenues before elimination of intersegment operations within SFR.
(4) At the end of December 2011, SFR group broadband Internet residential customer base totaled 5.019 million, following the exclusion of 1P and 2P Akéo customers
from the consolidation perimeter.