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

We now propose to discover in a little more detail the environment in which the Altice group evolves and carries out its activities with a presentation of its main competitors in its sector of activity.

Orange 

Firstly, we will of course follow the French group Orange which is a specialist in the telecommunications sector and which currently has more than 266 million customers throughout the world. It is currently the leading or second largest operator in more than 75% of the European countries in which it operates and in more than 80% of the countries in Africa and the Middle East. Formerly owned by the French state, the takeover of Orange after its privatisation led to the end of its former monopoly. The group is now present in Europe but also in Africa and the West Indies.

Bouygues 

Another competitor of Altice is the private industrial group Bouygues, which has existed since 1952 and whose activities are highly diversified. Indeed, the group operates in three main areas of activity including construction with Bouygues Construction, Bouygues Immobilier and Colas, telecommunications with Bouygues Telecom and media with the TF1 group. The Bouygues group is also one of the largest in the sector in terms of sales and size. It is established in no less than 81 countries around the world and is present on all continents. The group also currently employs more than 129,018 people, of which 62,900 work internationally. One of the particularities of the Bouygues group also concerns the fact that this company is the first company listed on the CAC 40 by its employee shareholding, which holds 20.3% of the capital and 27.4% of the voting rights.

Iliad

Finally, the last major competitor of the Altice group is the Iliad group which is a French telecommunications group created by Xavier Niel in 1991 and which is present both in France and in other countries such as Italy, Morocco and Poland. The group makes a major part of its turnover in the field of the Internet and the rest in the field of mobile telephony. Today, the Iliad group is the 6th largest telecommunications group in Europe with more than 42 million subscribers through its various subsidiaries in France, Italy and Poland and following the acquisition of the Polish operator Play in 2020.


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.

Frequently Asked Questions

What are the different subsidiaries currently held by the Altice Group?

The Altice group currently owns different subsidiaries in several countries around the world with Altice Emirates in the United Arab Emirates, SFR Télécom in France, SFR Caraïbes in Guadeloupe, Guyana and Martinique, SFR Réunion in Réunion and Mayotte, HOT in Israel, Altice Portugal in Portugal, Altice Dominicana in the Dominican Republic.

How is the Altice Group's shareholding currently distributed?

At present, the shareholders of Altice Group are divided between the free float which represents 7.98% and several private shareholders including Patrick Draho with 27.1%, Altice Europe V with 23.5%, Capital Research & Management with 9.34%, Dodge & Cox with 3.82%, Carmignac Gestion with 2.99%, Capital Research & Management with 1.33%, Alain Weill with 1.29%, DNCA Finance with 1.15%, Capital International with 1.08% and Norges Bank Investment Management with 0.96%.

How to analyse the Altice share price effectively?

If you want to set up really effective analyses of the Altice share, we recommend that you first choose the periodicity of your historical charts according to your strategy. You should also make sure that you multiply the indicators with trend, volatility or reversal indicators. Finally, you should not be satisfied with this technical analysis alone, but carry out other types of analysis in parallel, including a fundamental analysis.

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