Oddo BHF reports that Iliad gained 212,000 mobile contracts in Q1 2024, compared with Bouygues Telecom's 17,000, Orange's 9,000 and SFR's historic loss of 487,000 customers.

In fixed Internet, Iliad added 85,000 customers versus Bouygues Telecom 38,000, Orange -43,000 and SFR -77,000. Iliad and Bouygues Telecom continue to gain market share.

' For Orange France, total sales returned to growth at +0.8% (vs. -1.4% in 2023), helped (1) again by price increases in Q1 2023 and (2) a smaller reduction in wholesale activity
(-4% vs. -10% in previous quarters) ' says Oddo BHF.

' EBITDAal France is still expected to be virtually stable in 2024. However, the company has confirmed that it intends to improve its sales momentum, which we believe has been imperative for several months'.

The research department remains Neutral on the stock. Oddo downgraded its opinion to Neutral on the stock last April: ' i/ FCF growth for
2024 is now below that of many comparables; ii/ we lack potential on our OC: rebalancing value creation on France is necessary to raise our 2026e France valuation multiple (5x); iii/ we see more potential elsewhere in terms of shareholder return creation (DTE), defensive profile (KPN) or restructuring (TIT) ' adds the research firm.

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