- Following recent changes to management and strategy, Altice Europe is already starting to see the benefits of intensifying operational focus to improve customer service and drive better subscriber figures with further significant progress expected from Q1 2018:
o France B2C mobile postpaid customer base increased by +80k net additions in Q4 2017 (+199k in FY 2017), the best quarterly performance in two years, and a significant improvement compared to last
year (vs. +33k in Q4 2016);
o France fiber customer net additions were also the best in two years, reaching +69k in Q4 2017 (+193k in FY 2017), supported by improved processes, more attractive offers and new retention policies (vs.
+54k in Q4 2016). Total fixed B2C customer base trends improved both compared to the prior year and the prior quarter, reporting -45k net losses in Q4 with continuous significant monthly improvements throughout the quarter (-171k in FY 2017 and vs. -61k in Q4 2016).
o Portugal fiber customer net additions in Q4 2017 of +43k were the highest ever (+142k in FY 2017 and vs. +29k in Q4 2016), supported by the rapid expansion of fiber coverage. Significant reduction in churn in the total fixed B2C customer base to the lowest ever level below 10% by the end of 2017 with net additions in Q4 of +6k (-45k net losses in FY 2017 and vs. -25k in Q4 2016), representing the best quarterly performance in 5 years. Leadership in TV customer acquisition for the first time in 4 years.
? Altice N.V. Group revenue growth and margin expansion driven by strong Altice USA performance:
o Altice N.V. Group revenue growth of +0.6% YoY growth on a constant currency (CC) basis in FY 2017
(-0.6% growth YoY in Q4 2017) pre-separation (‘split’) of Altice USA2, in line with guidance;
o Altice Europe post-split revenue decline of -0.5% YoY on a CC basis in FY 2017 (-1.4% YoY in Q4 2017). Revenue growth in Israel of 3.7% on a CC basis offset by France revenue declining -1.6%, Portugal declining -1.1% and Dominican Republic declining -0.5% in FY 2017;
o Altice USA revenue growth of +3.2% YoY on a CC basis in FY 2017 (+2.6% YoY in Q4 2017).
? Altice N.V. Group Adjusted EBITDA3 grew +6.4% on a CC basis in FY 2017 pre-split, in line with guidance, and driven by the strong growth of Altice USA +19.7% in FY 2017 on a CC basis under IFRS:
o Altice N.V. Group Adjusted EBITDA margin pre-split increased by +2.1 percentage points YoY to 40.1% in FY 2017 (vs. 37.9% in FY 2016);
o Altice Europe post-split EBITDA margin was 39.3% in FY 2017 (+0.2% pts vs. 39.1% in FY 2016).
France margin increased +1.7% pts to 39.3% and Israel margin increased +0.6% pts to 45.8%, offset by Portugal margin decreasing -2.8% pts to 46.5% and Dominican Republic margin decreasing -0.8% pts to 55.9% in FY 2017

1 Financials shown in these bullet points are pro forma defined as results of the Altice N.V. Group as if the acquisition of Cablevision
(Optimum) had occurred on 1/1/16 (excluding Belgium & Luxembourg and Newsday Media Group as if the disposals occurred on 1/1/16). The
acquisitions of NextRadioTV and Altice Media Group France included from 1/1/16, pro forma for the sale of press titles within the AMG France
business in April and October 2017. Segments shown on a pro forma standalone reporting basis, Group figures shown on a pro forma
consolidated basis. Financials include the contribution from the insourcing of Parilis and Intelcia in 2017 (for one month in Q4 2016), as well as
the contribution from Teads from Q3 2017.
2 Altice N.V. Group figures presented here on ‘Old Perimeter’ reporting in line with previously reported results prior to the Altice reorganization
announced on January 8, 2018, including the separation (‘spin-off’ or ‘split’) of Altice USA. From 2018 onwards, results for Altice N.V. will be
reported on the ‘New Perimeter’ for Altice Europe (‘post-split’) as defined on page 13 of this release.
3 See reconciliation of non-GAAP performance measures to operating profit for the three and twelve months period ended on page 36 of this release.

o Altice USA reached an Adjusted EBITDA margin of 43.5% in FY 2017 (+6.0% pts vs. 37.5% in FY 2016).
? Altice N.V. Group Operating Free Cash Flow4 grew +13.4% on a CC basis in FY 20175 pre-split, driven by the strong growth of Altice USA +28.1% on a CC basis under IFRS, and Israel +70.8% on a CC basis.
Altice Europe post-split OpFCF grew +1.3% on a CC basis in FY 20175.
? Significant investment in networks and innovative new services with total capital expenditures for Altice N.V Group of €4.0bn in FY 20176, in line with guidance:
o Leading fiber7 operator in France reaching nearly 11 million homes passed (including acceleration in FTTH homes passed) and fastest 4G mobile network deployment in 20178;
o Leading fiber (FTTH) operator in Portugal reaching over 4 million homes passed in 2017 (on track for nationwide coverage target) and new partnerships for NR 5G NSA services;
o Altice USA’s fiber-to-the-home (FTTH) deployment accelerating, with the first homes to be commercialized later this year, and new full MVNO agreement to deploy mobile services by 2019;
o Altice USA’s new entertainment platform, Altice One, became available across the full Optimum footprint in January 2018; in Portugal in March 2018, MEO launched a new entertainment platform, Sofia, including a new user interface and a state-of-the-art new wireless video set top box.
? Rapid growth in media and advertising businesses; NextRadioTV record revenue growth (+25% in FY
2017) and audience market share gains, record revenue growth at Teads (+50% in FY 2017), strong growth at Altice USA’s Data and Advertising business (+4% in FY 2017), and further expansion with Media Capital acquisition9.
? Executing on non-core asset disposal program to strengthen the company’s long-term balance sheet position:
o Completed sale of telecommunications solutions business and Data Center operations in Switzerland;
o Entered exclusivity to sell international wholesale voice carrier business in France, Portugal and the Dominican Republic;
o Dominican Republic – strong position in an attractive market – process underway;
o French and Portuguese towers – largest portfolio to ever come to market in Europe – process
underway for c.10k French sites and c.3k Portuguese sites;
o Signing targeted in H1 2018.
? Further strengthening and simplification of diversified capital structure.
Dexter Goei, President of the Board of Altice N.V., said: “After several years of acquisitions, 2017 was the year of integration and execution, with an ongoing focus on making our customer experience better. As well as accelerated investment into upgrading our fixed and mobile networks for better quality services, Altice rapidly expanded its media and advertising businesses as new areas of growth. In parallel, Altice has taken important
steps to simplify the group and separate the business into a European and US group with distinct strategies.


4 Operating Free Cash Flow defined here as Adjusted EBITDA-capex.
5 Excluding €413.8m of capex related to the acquisition of multi-year major sport rights in 2016.
6 Excluding handset securitization / supplier financing of €200m in FY 2017, as per guidance.
7 FTTB and FTTH homes passed.
8 SFR activated the largest number of new 4G sites in 2017.
9 Media Capital acquisition under regulatory process.

Altice Europe has tremendous opportunities as we deliver on our operational aspirations, led by new management reporting to Altice founder Patrick Drahi. At the core of our strategy is the operational and financial turnaround in France and Portugal.
Altice USA sees exciting opportunities in the US market. We continued to have great momentum in 2017 and delivered strong financial results by growing our customer base, revenues and margins with high free cash flow growth.
In 2018 and beyond, we will remain very focused on investing for growth in innovation, superior service and
advanced networks to deliver a more robust and differentiated product portfolio to meet customers’ needs.”
March 15, 2018: Altice N.V. (Euronext: ATC NA and ATCB NA), today announces financial and operating results for the quarter ended December 31, 2017.

2018 Guidance10
For the full year 2018, Altice Europe (post-split) on the new perimeter is expected to generate operating free cash flow of €2.4 to €2.6 billion, excluding the Altice TV segment. As previously announced, Altice France is expected to generate operating free cash flow of €1.6 to €1.7 billion, which includes c.€300 million of annual pay TV content expenses and reflects c.€200 million of revenue drag related to changes to the value added taks law in France.
For the full year 2018 Altice USA expects:
? Revenue growth c.2.5-3.0% YoY;
? To increase investment for the continued rollout of Altice One, fiber (FTTH) deployment, and new MVNO network investment keeping with annual capex ~$1.3bn.
Altice Europe and Altice USA reiterate plans to expand Adjusted EBITDA and cash flow margins over the medium- to long-term.
Altice Reorganization Including Altice USA Separation (‘Spin-Off’ or ‘Split’)
On January 8, 2018, Altice N.V. announced that its Board of Directors approved plans for the separation (‘split’) of Altice USA Inc. from Altice N.V. (which will be renamed “Altice Europe”) to be effected by a spin-off of
Altice N.V.’s 67.2% interest in Altice USA through a distribution in kind to Altice N.V. shareholders11. The separation will enable each business to focus more on the distinct opportunities for value creation in their
respective markets and ensure greater transparency for investors. The proposed transaction is designed to create simplified, independent and more focused US and European operations to the benefit of their respective
customers, employees, investors and other stakeholders. Following this proposed transaction, the two companies will be led by separate management teams. Patrick Drahi, founder of Altice, will retain control of
both companies through Next12 and is committed to long-term ownership. Post-separation, Mr. Drahi will serve as President of the Board of Altice Europe and Chairman of the Board of Altice USA. Altice N.V. aims to complete the proposed spin-off transaction by the end of the second quarter 2018 following regulatory and Altice N.V. shareholder approvals.
In the spirit of enhanced accountability and transparency, Altice N.V. also announced on January 8, 2018, that Altice Europe will reorganize its structure comprising Altice France (including French Overseas Territories),Altice International and a newly formed Altice TV subsidiary. This includes integrating Altice’s support services businesses into their respective markets and bundling Altice Europe’s premium content activities into one separately funded operating unit with its own P&L.
Following the announcement of the spin-off of Altice USA, Altice N.V.’s ownership of Altice Technical Services
US has been transferred to Altice USA for a nominal consideration as previously announced. In addition, Altice USA is in the process of transferring Altice N.V.’s ownership of i24 US and i24 Europe for a small consideration.
On January 16, 2018, CSC Holdings, LLC announced the pricing of an offering of $1.0 billion in aggregate principal amount of its 10-year Senior Guaranteed Notes due 2028 (bearing an interest rate of 5.375%). CSC Holdings, LLC also announced the pricing and allocation of a new $1.5 billion incremental 8-year term loan facility under its existing credit agreement, maturing in January 2026 (priced at 99.50 with interest at a rate equal to LIBOR +2.5%). The proceeds of the senior guaranteed notes and term loans were used to refinance
existing borrowings of CSC Holdings, LLC and Cablevision Systems Corporation (“Cablevision”), namely the $300 million 7.875% February 2018 maturity and the $750 million 7.75% April 2018 maturity, and will be used to fund a dividend of $1.5 billion expected to be paid to Altice USA stockholders immediately prior to the separation from Altice N.V. expected to become effective in the second quarter of 2018. Following this refinancing Altice USA’s weighted average cost of debt reduced to 6.2% from 6.4% previously


10 2018 guidance assumes the same basis as reported in these results which does not take into account IFRS 15 accounting changes.
11 The distribution will exclude shares indirectly owned by Altice N.V. through Neptune Holding US LP (3.4% assuming reference share price of
$21.23 as of 31-12-2017 for Altice USA).
12 Next’s control of Altice USA will be exercised via some other Altice N.V. and Altice USA shareholders being in concert with Next – together
the “Next ATUS Concert”.

see and read more on
http://altice.net/sites/default/files/pdf/ATC-Q4-17-Results-Press-Release.pdf

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