Enders Analysis has accused Altice of running a ‘slash-and-burn’ leveraged buyout in its treatment of French telco SFR.
In a research report released on Friday, the London-based consultancy says France’s number two telecoms operator has suffered extensive damage since the 2014 takeover by Altice. Its loss of market share has triggered a decline in revenues with uncertainty surrounding when this might stabilise.
“SFR aims to appeal to subscribers through enlarged bundles of content sourced mainly from Altice investments in media, but execution seems geared to achieve VAT optimisation and augment the group’s political influence – which may be needed as massive job cuts are planned,” says Enders.
It warns increased investments will barely allow SFR to stand still in the competitive race for 4G and fibre deployment.
Altice bought SFR from Vivendi in a €17 billion transaction in April 2014.
