March 24 (Reuters) - French telecommunications group Iliad reported 5% growth in its annual core profit on Tuesday, driven by strong performance in Poland and Italy. Its earnings before interest,
Iliad bets on datacentres after 5% profit growth in 2025
Iliad's Strategic Investment in Cloud Infrastructure
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By Leo Marchandon
Financial Performance and Growth Drivers
March 24 (Reuters) - French telecoms group Iliad said on Tuesday it would keep investing in datacentres to capitalise on soaring cloud demand after its core earnings grew 5% in 2025 driven by strong performances in Poland and Italy.
European Cloud Market Context
The European Union lacks large cloud computing companies, known as hyperscalers, and rising tensions ranging from foreign policy to regulation have fuelled calls within the bloc to curb reliance on foreign players.
Expansion Plans and Infrastructure Projects
The company, aiming to become a European leader in cloud infrastructure, plans to spend more than 3 billion euros ($3.5 billion) on datacentre infrastructure over the next five to six years.
CEO Insights and Facility Developments
The volatile geopolitical environment has generated "exponential demand" for local hyperscalers, CEO Thomas Reynaud said in the earnings statement.
Paris Region Facility
During a press call, Reynaud said a 120-megawatt facility project in the Paris region was expected to be operational by 2027 and would be occupied by European artificial intelligence players.
Seine-et-Marne Project
A second project on a 24-hectare former coal plant site in Seine-et-Marne could reach capacity of 230-300 MW, he added.
The Seine-et-Marne site benefits from a fast-track grid connection approved at the 2025 AI summit at the Elysée, Reynaud said, calling the facility a matter of "strategic interest for France, on a par with energy and telecoms infrastructure".
Competition and Market Position
Reynaud confirmed Iliad is a candidate for the European Commission's cloud tender, competing with French peer OVHcloud among others. Up to four providers will be awarded a contract under the tender.
Subscriber Growth and Financial Highlights
Iliad's earnings before interest, taxes, depreciation and amortization, and after lease expenses (EBITDaL), were just above 4 billion euros last year.
It remained a market leader in France, adding 200,000 net new subscribers in the country in 2025. It also added 200,000 new subscribers in Poland and 900,000 in Italy.
Annual free cash flow of 2.25 billion euros exceeded Iliad's own guidance of 2 billion euros.
Additional Information
($1 = 0.8615 euros)
(Reporting by Leo Marchandon in Gdansk, editing by Milla Nissi-Prussak)
