ALTICE

Analysis of Altice share price

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Here we will help you set up a full analyses of the Altice share price by revealing certain essential information. In this article, you'll find the most important stock market data relating to the company along with its activities, its competition and its partners, as well as a technical analysis of the evolution of its price and some stock market advice.

Latest news

Altice could sell its Portuguese operator Meo

07/06/2021 - 12h59

Altice bought Meo back in 2014. So, being burdened with debts, it wants to resell the company according to rumors. A few fragments of Meo have already been sold in recent years.

Elements that can influence the price of this asset:

Analysis N°1

First, of course, keep a watchful eye on the investments made by Altice in American companies that could lower investor morale.

Analysis N°2

Competition is also an element to watch very closely because it is particularly fierce in the telecommunications sector.

Analysis N°3

Also, monitor the operational results of large companies that are part of this group such as SFR-Numericable.

Analysis N°4

Finally, the very structure of the group and the diversification of its activities will also be an important issue over the next few years, with no doubt a complete reorganization of the various divisions in which the group is most present.

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General presentation of Altice

The Altice group is currently one of the leading French and European specialists in the cable and telecommunications sector. It operates throughout Europe as in France, and also in Portugal, Belgium, Switzerland and Luxembourg, in the French Antilles and in other countries and geographical areas such as Israel, the Dominican Republic and even some countries of the Indian Ocean.

It mainly offers cable-related services high-quality and pay-per-view cable television channels in particular, as well as Internet access and fixed cable telephone services. These services concern both individual customers and professional customers such as certain businesses.

It's in France that Altice realizes the majority of its turnover (52%). Next comes the American market, Portugal, Israel, the Dominican Republic and the rest of the world.

Analysis of Altice share price
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The major competitors of Altice

Altice is a key player in several specific business sectors such as telecommunications, media and cable television. As such, it has to face significant competition from other companies, some of which are among the large groups listed on the stock exchange. Two sectors of activity (Telecommunications and television) being the main sources of Altice's turnover, the level of competition that reigns must be watched very closely. Therefore take into account the results and news of these large companies as part of your fundamental studies of the Altice share.

Television sector

 Vodafone, Liberty Global, Com Hem and Get As


The major partners of Altice

The solidity of the Altice group is also due to a complex strategy based, among other things, on strategic partnerships with competing companies or sectors complementary to its own. Here are some examples of the last successful associations of the group:

Netflix

In 2017, the Altice group, signed a partnership agreement with the online video supplier Netflix through its subsidiary SFR with the aim of providing promotional offers to its subscribers.

TF1

The same year, still through its subsidiary SFR, Altice set up a partnership with the TF1 group. The partnership includes the takeover of MyTF1 by the group as well as an advertising partnership and the creation of a new channel.

Orange

Negotiations are also underway between Altice and one of its main competitors, Orange, regarding online content, although no agreement has yet emerged.

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The factors in favour of a rise in the Altice share price:

First of all, bear in mind that Altice is the group to which the SFR-Numéricable company belongs. This company occupies a very advantageous position in the telecommunications sector in France as well as in the UK market since the takeover of Virgin Mobile. Their positions are also interesting in other countries such as Portugal. In fact, on the French market, Altice's Numéricable-SFR subsidiary owns over 20% of the fixed line telephony market, more than 30% of the mobile line telephony market and 20% of the B2B market in this sector thanks to the Completel brand. It also owns more than 15% of the market share of pay television services.

The Altice group also benefits from a turnover which has been steadily increasing for several years. In fact, in just 3 years, this turnover has increased from one billion euros to over 21 billion euros, which is more than enough to motivate investors and future shareholders to take an interest in this value.

Altice has also made a place for itself among the global leaders of the telecoms sector thanks to a very thorough acquisition strategy. In total, the group invested more than 50 billion euros in these business buyouts, especially with the takeover of SFR in France, of Portugal Telecom in Portugal and the takeover of Suddenlink and Cabletelevision in the USA. So, this group, which previously only had a strong presence in France and Europe, is gradually expanding its empire elsewhere in the world.

You'll also notice that the operational profitability of most of the companies owned by Altice is largely positive, averaging over 35%. The group has succeeded in rapidly generating synergies from mergers and increasing its profits in various segments.

The fact that the group doesn't just carry out activities in telecoms but, little by little, tends towards diversifying into different sectors of activity clearly demonstrates its ability to protect itself from the risk associated with exposure to a single and same segment. Altice invests mainly in the technological field, which has enabled a sound technical lead over its competitors thanks to the very high speed of optical fibre in which it owns more than 65% of the market share.

Finally, again thanks to its various subsidiaries and companies, the Altice group suffers very little from competition and remains a key figure in the market.

The factors in favour of a drop in the Altice share price:

First of all, the French mobile phone market which the Altice group banks a lot of its activities on is an extremely competitive market. It's therefore difficult for Numericable-SFR to maintain its place among the leaders in this sectorup against an increasingly complex and demanding pricing policy.

Investors are also asking themselves about the profit in terms of value creation of the group's telco / media convergence strategy. This following the purchase of over 49% of the capital of NextRadio TV from the parent company, which owns the BFM TV and RMC channels. And the merger between Altice Media Group, which owns the Liberation and Express newspapers and the operator SFR, aiming to give SFR subscribers access to 4 worlds including the press, sport, entertainment and advertising in exchange for a general price increase. This last operation is also considered particularly risky in the eyes of analysts.

Likewise, investor confidence has recently been undermined with Altice's interest in the American group Charter, which is a cable specialist and whose capitalization reaches 120 billion dollars, i.e. 10 times more than Altice's capitalization, which in fact resulted in a net drop in the share during the summer of 2017. It seems that American investors who are Altice's main sources of funding are tired of the French group's buyout operations. Keep in mind that in 2015, the share had already lost many points after the takeover of Cabletelevision.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.
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