Iliad's network investments boost sales, plans Italy expansion

By Matteo Allievi and Augustin Turpin

(Reuters) -French telecoms group Iliad on Thursday reported a 10% jump in annual sales supported by its 4G and 5G investments as it plans further expansion in Italy and Poland.

Telecom companies across Europe have been making early forays in what could be a new wave of sector consolidation, with operators facing costly investments to expand fibre networks and roll out 5G services.

Iliad, which billionaire Xavier Niel took private two years ago, reported revenue of 8.4 billion euros ($8.9 billion) for 2022, compared with 7.6 billion a year earlier.

CEO Thomas Reynaud said in a conference call that Iliad's "massive investments" in 4G and 5G and the expansion beyond its historical borders were paying off.

He said Iliad planned to expand in Italy this year by offering commercial services for businesses and would seek to play a role in possible market consolidation.

"If ever there is a consolidation movement in Italy - and I say 'if' - we want to be part of it, and I have a very strong conviction that Iliad Italia will be a long-term player in the Italian telecoms sector," Reynaud said.

Iliad has been making deals to expand its fibre services in Italy to tap demand for ultra-fast connections. The French company in January finalised a joint venture with Italian operator Windtre, with the aim of managing their respective mobile networks in less densely populated areas of the country.

It finished the year with 1.06 million new mobile subscribers in Italy and added 862,000 subscribers in its home market France.

It gained 687,000 new subscribers in Poland, where it last year bought broadband operator UPC from Liberty Global.

The group said the combination of its Polish mobile operator Play and UPC, expected in early 2023, would allow it to accelerate its expansion in the Polish market.

Iliad did not give a detailed guidance but said it was confident about 2023 following last year's good momentum and despite the uncertain economic environment.

($1 = 0.9435 euros)

(Reporting by Matteo Allievi and Augustin Turpin in Gdansk; Additional reporting by Elvira Pollina in Milan; Editing by Milla Nissi and Jane Merriman)