![]() We believe the group will capitalize on the growing market penetration of its bundled service offerings, either directly or most likely as a wholesaler through its “white label” business-to-customer wholesale contract. We project that Ypso will post low-single-digit revenue growth over the next two years while preserving strong EBITDA margins at, or just above, about 50%. As a result, profitability climbed, and Ypso’s EBITDA margin reached a strong 53%. Ypso posted sound results in the first half of 2012, with like-for-like sales and EBITDA growth of 2% and 3% year-on-year, respectively. ![]() ![]() We consider that the group’s premium cable network is of better quality than its competitors’ digital subscriber line (DSL) infrastructure, with sizable upgrades to fiber already achieved. Ypso is one of the leading providers of triple-play services in its franchise areas. The rating is supported by what we view as Ypso’s “adequate” liquidity position and fair business risk profile, based on its sound market positions and strong profitability. ![]() Additional rating weaknesses include the intense competition in the French consolidated telecommunications and pay-TV markets because of the early and widespread adoption of digital subscriber line technology in France, and Ypso’s somewhat incomplete network coverage. #Cliff notes into the wild 9 free#The rating is constrained by our view of the group’s highly leveraged financial risk profile, which reflects aggressive debt leverage, a challenging debt maturity profile from 2014 onward, and only moderate free operating cash flow (FOCF) generation. Standard & Poor’s Ratings Services views French cable operator Ypso Holding Sarl’s (Ypso) business risk profile as “fair” and its financial risk profile as “highly leveraged,” as our criteria define the terms. ![]()
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