Altice S.A.
Thesis
The market misunderstands the potential for cost savings and synergies from migrating DSL subscribers to Altice's cable network, alongside significant operational expense cuts. The consolidation of the European telecom industry presents a strong opportunity for Altice to capitalize on its position as a consolidator, with a favorable regulatory environment and a growing demand for high-speed broadband.
Did it work?
No price data is provided, but the ~11 years elapsed allows assessment against Altice's well-documented history. While some DSL-to-cable migration, opex cuts, and consolidation (SFR, Cablevision/Suddenlink) did occur, the anticipated favorable regulatory environment for European in-market telecom consolidation never fully materialized, and the group's ballooning leverage overwhelmed the synergy story — the equity collapsed from its 2015 peak and Altice Europe was taken private in 2021 at €35/share, a fraction of peak value, with Altice France subsequently in financial distress. The long thesis thus failed for shareholders despite partial operational delivery. Confidence is low because actual pitch-date price performance is unavailable.