France's Iliad sees 2012 profit decline due to network investment

French operator Iliad has seen its full-year profit decline by more than a quarter in 2012. The firm posted profit of €186.5m, down from €251.8m in 2011, despite revenues increasing almost 50 per cent.

Despite consolidated revenues reaching €3.15bn in 2012, up from €2.12bn in 2011, the operator invested €950m – representing 30 per cent of its revenues – on network capital expenditure and growth projects, it said.

The firm created more than 1,000 jobs in France in 2012 and its low-cost operator subsidiary Free reached nearly ten million subscribers over the year.

In May 2012, the firm announced that Free managed to acquire nearly four per cent of the country’s market share –  2.6 million mobile subscribers-  in just 80 days, having launched on January 10, 2012.

Free offers coverage to  about 30 per cent of the population via its own network and relies on a roaming agreement with Orange for extended coverage.