French Telecoms SFR Q1: Trends weak, but management still expect improvements over the coming quarters

Research evidence excerpt

French Telecoms SFR Q1: Trends weak, but management still expect improvements over the coming quarters

J P M O R G A N Europe Equity Research

20 May 2026

French Telecoms

SFR Q1: Trends weak, but management still expect

improvements over the coming quarters

Our Take: SFR has just released its Q1 results. Financials and KPIs are weaker European Telecommunication

than hoped, and will likely reignite debates around what motivated the bidding Services

consortium on 17th April to raise their offer for SFR so materially (here). As Akhil Dattani AC

previously discussed, it is our expectation that this reflects likely higher-than- (44-20) 7134-4725

anticipated cost synergies. Results highlights: (1) SFR acknowledged talks have akhil.dattani@jpmorgan.com

been extended to 5th June (here), and reiterated the €20.35bn offer does not include J.P. Morgan Securities plc

a potential incremental earn-out, (2) Revenues ex La Poste & Construction Ankur Baheti, CFA

€2,090m -7.9% y/y (Q4 -9.7%). Management attributed the small improvement to (91-86) 5796-8820

ankur.baheti@jpmchase.com

better ARPU trends, supported by more rational competitive dynamics across the J.P. Morgan India Private Limited

no-frills market, and improving NPS, (3) With KPIs remaining weak, it is difficult

to gauge the quality of the sequential revenue improvement. BB -46k (Q4 -52k) and Specialist Sales contact details:

mobile -165k (Q4 +66k). Mobile includes prepay losses of -144k (with <€5/month Scott Silver - Specialist Sales -

ARPUs) excluding which the trend was -21k, (4) EBITDA ex La Poste and Infracos European TMT

€583m -13.1% y/y (Q4 -12.5%). On the earnings call, management reiterated the (44-20) 7134-0412

scott.silver@jpmorgan.com

expectations that they will begin to “stabilise [EBITDA] in the coming quarters”