Altice France, one of the leading telecommunications companies, has released its financial report for the fourth quarter of 2024. The noteworthy figures indicate that the company is facing significant challenges that have impacted its profitability and overall performance.

Key Financial Indicators

According to the report, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to €822 million, reflecting a 14% decline compared to the same period last year. Revenues totaled €2.53 billion (approximately $2.9 billion), also down by 9% from the fourth quarter of 2023. These results underline the deteriorating financial situation of Altice France and necessitate an examination of the reasons behind such outcomes.

Customer Loss: Causes and Consequences

Over the past three months, the company experienced a considerable drop in its subscriber base:

• 112,000 mobile subscribers lost – this loss can be attributed to increased competition in the market and customers switching to other providers.

• 41,000 fixed-line subscribers lost – despite efforts to retain customers, the company continues to lose ground in the fixed-line segment.

• On a positive note, the acquisition of 75,000 fiber optic subscribers indicates a growing interest in modern technologies.

The decline in subscriber numbers had a detrimental effect on revenues from business services, which plummeted by more than 20% compared to the previous year. It is anticipated that such trends may persist into the next quarter if measures to improve customer service and service offerings are not implemented.

Factors Contributing to Profit Decline

The decrease in Altice France's revenues can be explained by several key factors:

1. Intensified Competition – The telecommunications market is witnessing an increasing number of providers offering more advantageous terms to customers.

2. Declining Interest in Traditional Services – With the rise of mobile internet and Over-The-Top (OTT) services, some customers are abandoning fixed-line services.

3. Service Quality Issues – Customer feedback regarding dissatisfaction with service quality and connectivity may also contribute to subscriber churn.

Future Prospects

Despite facing significant challenges, the company has potential for recovery and adaptation. Some of the outlined plans include:

• Investments in innovative technologies and expanding the range of services offered;

• Increased marketing efforts to attract new customers and retain existing ones;

• Enhancing service quality and customer support, which will be crucial in competing against rivals.

Transitioning to more advanced technological solutions, such as 5G and expanding fiber-optic networks, could provide a solid foundation for reclaiming lost market positions. The situation facing Altice France serves as a stark illustration of the challenges that telecommunications operators face in an environment of fierce competition and changing consumer needs. To restore competitiveness and increase revenues, it is vital for the company to adapt swiftly to new conditions and follow industry trends. This primarily involves investing in technology, improving service quality, and implementing effective marketing strategies.