Mobile investments weigh on Iliad’s profits

by bold-lichterman

The group Iliad, parent company of Free, today released its annual results.

iliad

The group recorded consolidated sales of € 3.1 billion in 2012, up 48.6%. Ebitda, meanwhile, stood at € 921m, up 10.6% over one year.

On the other hand, the group’s net income fell by almost 26% to stand at € 186.5 million.

This erosion could be explained in particular by the heavy investments made by the group this year. Indeed, 30% of the turnover would have been invested in 2012, that is to say nearly 950M € of investments.

On the mobile side, the group claims to have recruited more than 5.2M subscribers, or nearly 8% of market share and announces having generated more than 840M € of turnover thanks to this activity.

Medium term, Free mobile aims for a 15% market share and aims, in the long term, for a 25% market share.

Still in terms of forecasts, the group is counting on a turnover of more than € 4 billion by 2015.