195
Annual Report -
2013
-
Vivendi
Financial Report
| Statutory Auditors’ Report on the Consolidated Financial Statements | Consolidated
Financial Statements | Statutory Auditors’ Report on the Financial Statements | Statutory Financial Statements
4
SECTION 4 - Business segment performance analysis
■
■
Revenues and EBITA
SFR’s revenues were €10,199 million, a 9.6% decrease compared to
2012, due to the impact of price cuts in response to the competitive
environment and to tariff cuts imposed by the regulators
(1)
. Excluding
the impact of the tariff cuts imposed by the regulators, revenues
decreased by 7.2%.
In 2013, SFR’s total mobile customer base increased by 756,000
(2)
net additions since December 31, 2012 and reached 21.354 million
(2)
.
At the end of December 2013, the broadband Internet residential
customer base increased by 182,000 net additions to 5.257 million.
Retail
(3)
revenues amounted to €6,873 million, down 13.8% compared
to 2012.
Within the Mobile Retail market
(3)
, SFR’s postpaid customer base
increased by 279,000
(2)
net additions in 2013. At the end of December,
SFR’s postpaid mobile customer base reached 11.381 million, a 2.5%
(2)
increase compared to end December 2012. In the Retail Postpaid
customer market, in the fourth quarter, SFR recorded its best net sales
performance since the fourth quarter of 2011, and its best December in
three years. SFR’s total (postpaid and prepaid) Mobile Retail customer
base reached 14.555 million. Mobile Internet usage continued to
improve, with 64% of SFR Retail customers equipped with a smartphone
(51% at end December 2012).
One year after having launched 4G, SFR covers more than 40% of the
population representing 1,200 cities, with more than 1 million customers
at year-end. SFR also covers over 70% of the population in Dual Carrier.
Within the Fixed Retail market
(3)
, the broadband Internet residential
customer base in mainland France reached 5.209 million at the end of
December 2013, with 170,000 net additions since December 31, 2012,
and an acceleration of fiber recruitments. The “Multi-Pack de SFR”
offer attracted 2.355 million subscribers at the end of December 2013,
representing 45% of the broadband Internet customer base.
In a challenging macroeconomic environment, B2B
(4)
revenues amounted
to €1,789 million, down 4.4%.
On February 13, 2014, Vivendi announced it had entered into
exclusive negotiations with Belgacom Group to acquire 100% of the
shares of Telindus France Group. Telindus Group is a leader on the
French market of telecommunication integration and operations of
ICT (Information and Communication Technologies) infrastructures,
and the first Cisco distributor in France. Telindus France would
further strengthen Vivendi’s Telecoms Division, sitting alongside the
SFR group. SFR will thus substantially expand its presence on the
related market of telecommunication integration and will provide
new services to its corporate customers in addition to those offered
by the SFR Business Team.
Wholesale and other
(5)
revenues amounted to €1,537 million, a 6.5%
increase year-on-year, mainly due to growth on Wholesale activity.
SFR’s EBITDA amounted to €2,766 million, a 16.2% decrease compared
to 2012 (excluding non-recurring items
(6)
, EBITDA decreased by 16.5%).
SFR continues to implement its transformation plan. Since the end of 2011,
operating expenditures, both fixed and variable, have decreased by more
than €1 billion (excluding non-recurring items
(6)
).
■
■
Cash flow from operations (CFFO)
SFR’s cash flow from operations amounted to €650 million, a 6.2%
decrease compared to 2012. In 2012, it notably included the impact of
the acquisition of mobile spectrum for €1,065 million. Excluding this
impact, cash flow from operations amounted to €1,108 million (-63.0%),
primarily due to the decrease in EBITDA after changes in net working
capital (-€992 million) and the increase in restructuring charges paid
(-€150 million).
(1)
Tariff cuts imposed by regulatory decision:
i)
33% decrease in mobile voice termination regulated price on July 1, 2012 and a further 20% decrease on January 1, 2013;
ii)
33% decrease in SMS termination regulated price on July 1, 2012;
iii)
roaming tariff cuts on July 1, 2012 and on July 1, 2013; and
iv)
50% decrease in fixed voice termination regulated price on July 1, 2012 and a further 47% decrease on January 1, 2013.
(2)
Following a Retail billing system migration, 92,000 inactive customers were excluded from the final customer base (no impact on revenues).
(3)
Metropolitan market, all brands combined.
(4)
Metropolitan market, SFR Business Team brand.
(5)
Mainly Wholesale revenues, SRR (SFR’s subsidiary in La Réunion) revenues, and elimination of intersegment operations.
(6)
+€51 million in the third quarter of 2012, and -€66 million in the fourth quarter of 2012.
