Iliad is stepping up its expansion in Italia and is aiming for its first annual profit

For the first time since it entered the Italian market, Iliad is on track to post an annual profit. Following a second quarter that closed with a profit of around 44 million, the French group expects 2026 to mark a definitive turning point. “Over the course of the whole year, the contribution from our operations in Italia will be positive for the Group, and this truly represents a significant change: after five or six years of major investment, we are seeing a positive contribution to EBITDA and, now, to cash flow as well,” it was explained during the call with journalists.

This marks the culmination of a journey that began in 2018, built on a series of offers, network investments and growth in the customer base. But above all, it is a sign that Italia is no longer merely the market in which Iliad burns through capital to gain market share: it is becoming one of the pillars underpinning the group. In the first half of the year, Italian revenues rose by 10.2 per cent to 665 million (well above the group’s 3 per cent increase), whilst EBITDA after lease costs grew by 20.2 per cent to 229 million. The margin rose from 31.6% to 34.5% and operating cash flow jumped by 75.2% to 106 million, partly due to the normalisation of capital expenditure, which fell to 124 million.

Thomas Reynaud, the group’s CEO, described Italia as “probably the main source of satisfaction this half-year”. And the figures explain why. At the end of June, Iliad had 12.8 million mobile users and 568,000 fixed-line users, making a total customer base of 13.3 million. In the residential sector, the brand “has overtaken Telecom Italia”, said the CEO, and has become the third-largest brand in the residential human SIM market. The company also claims to be the leader in net customer acquisitions in both mobile and fixed-line broadband, and reports record levels of customer satisfaction.

The Italian result carries even greater weight because it comes at a time when France, the company’s traditional market, is growing at a much slower pace. In the first half of the year, French revenue rose by 1.5 per cent to 3.32 billion, whilst EBITDA after lease fell by 1.9 per cent to 1.29 billion. Poland, on the other hand, recorded revenues of 1.26 billion, up 3.5 per cent, and EBITDA after lease rose by 5.8 per cent to 575 million. Overall, the group generated revenue of 5.24 billion, with operating margins of 2.09 billion and operating cash flow of 1.29 billion, up by 10.2 per cent. Net profit fell to 502 million, weighed down by the comparison with the one-off items in 2025 relating to the sale of 50 per cent of the subsidiary OpCore (which comprises Iliad’s data centres in France and Poland) to the InfraVia fund.

Italy’s path, however, now intersects with the spectrum issue. The licences expire in 2029, and AGCOM is consulting the market on a possible renewal until 2037 in exchange for investment commitments. iliad considers the current distribution of spectrum to be unbalanced and fears that a renewal without corrective measures will end up freezing the existing balance of power for several more years. “We have launched the spectrum consultations. In Italia, we will contribute to the consultations and firmly believe that a rebalancing is necessary in line with national and European legislation. And this is what we will state during the consultations,” said Reynaud, adding nothing further during the call with journalists.