French telecommunications company Iliad announced a 2.2% increase in its first‑half 2026 core profit on Thursday, highlighting the continued strength of its Italian subsidiary. The company reported EBITDAaL—earnings before interest, taxes, depreciation, amortisation and after leases—of €2 billion (approximately $2.3 billion) for the six‑month period.

Italian market fuels growth

The modest uplift in profit was primarily attributed to robust subscriber growth and higher average revenue per user in Italy, where Iliad has been expanding its mobile and broadband footprint since entering the market in 2018. Analysts note that the Italian telecom sector remains competitive, but Iliad’s aggressive pricing and customer‑centric approach have allowed it to capture market share from incumbents.

In its statement, Iliad’s chief financial officer emphasized that the company’s cost‑control measures and continued investment in network infrastructure helped sustain margins despite a challenging macro‑economic environment across Europe.

Financial context and outlook

While the 2.2% rise may appear modest, it represents a positive trend after a period of slower growth in 2025, when the company faced higher energy costs and regulatory pressures. The €2 billion EBITDAaL figure translates to a conversion rate of roughly 12% of total revenue, aligning with the firm’s long‑term profitability targets.

Looking ahead, Iliad expects the second half of 2026 to benefit from the rollout of 5G services in Italy and the continued integration of its recent acquisitions. The company also signalled plans to explore additional growth opportunities in other European markets, though no specific targets were disclosed.

Currency note

For reference, the exchange rate used in the report was $1 = 0.8582 euros.

The announcement was reported by Reuters correspondent Leo Marchandon from Gdańsk, with editing by Milla Nissi‑Prussak.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.