Altice (ATC)

Question 1

9.22.2015 Mgt. Call on Cablevision Acquisition

Answer 1

• Market and macro factors
o US has relatively non-homogenous business, competition was less rigorous than it is in Europe. You have regulation and price competition less rigorous than it is in the European markets
o Historical background of ATC has always been cable, it’s morphed into quad play in Europe. If you’re not in quad play your in structural decline
 US is quite some time away from having real competition across the country on the fiber side. Still has coaxed networks which have not been upgraded
o Low data penetration on the fixed line, opportunities for ample consolidation going forward
• Still has structural issues with investment and cost side of the business – ATC can radically improve. This is why ATC did Suddenlink and why they did Cablevision
o Market share numbers for Cablevision are pretty stable, cost side of the equation relative to the density provides tremendous opportunity to improve the technology of the networks, CPC’s and IT system
o “Being very conservative” in the numbers ATC is giving to the street, return profile is “phenomenal”
• French market is great from a FCF basis, September seeing net add positivity on the mobile side, seeing growth on sub base
o “Feel street is being quite conservative on the numbers here”
• Portugal business on track, synergy numbers are easily attainable
• Israel business will be completely right-sized on that business by the end of this year