Press Release : Orange Q3 2023 Financial Results
Press releaseParis, 24 October
2023
Financial information at 30 September 2023
Focus on the Lead the future strategic
plan, prioritize value and operational efficiency.
3Q results fully in line with the confirmed
2023 financial targets.
In millions of euros |
|
3Q 2023 |
changecomparablebasis |
changehistoricalbasis |
|
9M 2023 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
10,999 |
1.8 % |
1.6 % |
|
32,544 |
1.9 % |
1.3 % |
EBITDAaL |
|
3,596 |
1.4 % |
0.4 % |
|
9,491 |
1.0 % |
(0.3)% |
eCAPEX (excluding licenses) |
|
1,597 |
(7.0)% |
(7.7)% |
|
4,751 |
(6.1)% |
(7.6)% |
EBITDAaL - eCAPEX |
|
1,999 |
9.3 % |
8.0 % |
|
4,740 |
9.4 % |
8.4 % |
Commenting on the publication of these results,
Christel Heydemann, Chief Executive Officer of the Orange Group,
said:
"In an unstable global environment, we have once
again demonstrated our ability to execute our "Lead the future"
strategic plan, giving us confidence that we are on track to
achieve our ambitions for 2025.
In France and Europe, the quarterly results in
retail services continue to demonstrate a positive momentum that is
driven by our value strategy, helped by the price increases we are
implementing with the utmost care. In Spain, our discussions with
regard to the merger with MasMovil are continuing with a view to
securing European Commission approval by the end of this year.
Africa and the Middle East continue their
excellent performance driving the Group’s growth, with revenues
increasing by over 12% and ten countries recording double-digit
growth.
In the Enterprise market, rapid growth in
IT&IS revenues of more than 9% is offsetting the decline in our
historical activities, while Orange Business continues its
transformation.
Finally, we are maintaining our drive to improve
efficiency through the execution of our cost-cutting plan,
accelerating EBITDAaL growth in the third quarter (+1.4% vs. +1% in
the second quarter).
On the strength of these results, for which I
would like to warmly thank all the Group's teams, we are confirming
our objectives for 2023.
Together, we continue to build and strengthen
the Orange Group, ensuring its competitiveness with confidence and
determination."
-
Revenues for the third quarter of 2023 were
10,999 million euros, an increase of 1.8%, or 194 million
euros, year on year1 (compared with +2.6% in 2Q and +2.0% in H1).
Revenue growth in the quarter was driven by retail services2, which
grew by 3.8%, or 304 million euros (+4.3% in 2Q and +3.6% in
H1). This increase, in absolute terms, was more than double the
decline in revenues from wholesale services, which continued to
decrease, falling 6.7% or -123 million euros (-4.1% in 2Q and
-5.9% in H1).
- In
France, continued growth in retail services
excluding PSTN (+3.4%) and in mobile equipment sales (+3.0%) offset
the anticipated decline in wholesale services revenues. Revenues
thus continued their improvement, falling -0.5% (-1.3% in 2Q and
-1.8% in 1Q).
- In
Europe, revenues from retail services continued to
grow, up 2.3%, thanks to the value strategy and in spite of an
unfavorable baseline effect related to progressive price increases
during 2022.
- Africa
& Middle East continued to post very strong growth of
12.2%, driven by double-digit increases in its four growth engines
(+17.8% for mobile data, +17.0% for fixed broadband, +28.2% for
Orange Money and +20.3% for B2B across the board).
- Growth in IT & Integration
services revenues in the Enterprise sector
accelerated to 9.3% (+8.8% in 2Q and +7.1% in H1) and more than
offset the structural decline in the Voice and Data legacy
businesses. Enterprise revenues increased 0.6%, reflecting stable
mobile revenues, with the growth in services being offset by the
decrease in equipment sales.
- In terms of commercial performance3,
the Group maintained its leadership position in
convergence, with 11.9 million convergent customers
Group-wide (+1.0%), as well as its commercial momentum in mobile
contracts and very high-speed fixed broadband accesses.
Mobile services had 250.9 million accesses
(+4.2%), including 100.8 million contracts (+9.0%).
Fixed services totaled 44.8 million accesses
(-2.9%), including 16.0 million very high-speed broadband
accesses which continued to grow strongly (+12.8%). Fixed
narrowband accesses continued their structural decline
(-14.3%).
- Growth in EBITDAaL
accelerated to 1.4% in the third quarter of 2023 (+1.0% in 2Q and
+0.5% in 1Q), in line with the target for the year end. Despite the
inflationary backdrop, the operational efficiency program continued
on its trajectory towards achieving its target of 600 million
euros by 2025, on a defined cost base of 11.8 billion euros at
the end of 2022.
- eCAPEX was
1,597 million euros in the third quarter of 2023, a
year-on-year reduction of 7.0%, in line with the objective of a
substantial reduction for the year as a whole. At 30 September
2023, Orange had 70.0 million households connectable to FTTH
worldwide (up 11.9% year on year) and an FTTH customer base of
15.0 million (+13.5%).
The Group reconfirms its financial
targets, in particular those for 20234, as
presented at the Capital Market Day on 16 February:
- Slight growth in
EBITDAaL
- Significant
reduction in eCAPEX
- Organic
cash-flow from telecom activities of at least 3.5 billion
euros
- Net
debt/EBITDAaL ratio for telecom activities unchanged at around 2x
in the medium term
Orange has also confirmed an interim dividend
cash payment for 2023 of 0.30 euros per share, which will take
place on 6 December 2023. A dividend of 0.72 euros per
share for 2023 will be proposed to the Annual Shareholders’ Meeting
in 2024.
_______________________________________________________________________________
The Board of Directors of Orange SA met on
23 October 2023 to review the consolidated financial results
at 30 September 2023.
More detailed information on the Group’s
financial results and performance indicators is available on the
Orange website www.orange.com/en/consolidated-results.
Changes in the asset
portfolio
Joint venture with Masmovil in
Spain
On 28 July, the European Commission suspended
its analysis of the project (Phase II, which began in April),
in order for parties to provide feedback on the competition
concerns it has identified and the commitments that the two groups
could make to resolve them. The Orange group remains confident that
the competent authorities will approve the transaction towards the
end of 2023, which would allow for it to be finalized in the first
quarter of 2024.
Acquisition of NEHS Digital and
Xperis
On 26 September, Enovacom, the healthcare
subsidiary of Orange Business and the French leader in healthcare
data interoperability, announced that it had finalized the
acquisition of two subsidiaries of the Mutuelle Nationale des
Hospitaliers (MNH) group:
- NEHS Digital, an
editor, a service provider and distributor of healthcare solutions,
particularly in medical imaging, and
- Xperis, a
healthcare data interoperability specialist.
These two entities NEHS Digital and Xperis cover
five key areas of expertise: medical imaging, telemedicine, the
organization of medical interpretation services, the production and
coordination of care services, and the security and
interoperability of information systems. Following the integration
of NEHS Digital and Xperis, Enovacom’s teams will benefit from the
expertise of more than 600 e-healthcare professionals.
This acquisition, confirming Enovacom's position as
one of the leaders in the e-healthcare sector in France, is part of
the strategic plan Lead the future and reinforces Orange Business’
strategy to develop solutions for healthcare professionals.
ESG
A sustainability-linked bond
issuance
On 4 September, Orange successfully
completed its inaugural sustainability-linked bond issuance, for a
nominal amount of 500 million euros, linked to the Group’s
target of a 45% reduction in its greenhouse gas emissions (Scopes
1, 2 and 3) by 2030 (compared with 2020) and its commitment to
provide digital support and training to external beneficiaries
(6 million beneficiaries cumulatively between 2021 and 2030).
This enables Orange to extend the maturity of its debt and
diversify its sources of financing on optimal terms. With an
oversubscription of five times, this bond issue was very well
received by the markets, demonstrating their confidence in the
Group’s financial strength, strategy and ability to achieve its ESG
goals.
Review by operating
segment
France
In millions of euros |
|
3Q 2023 |
changecomparablebasis |
changehistoricalbasis |
|
9M 2023 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
4,439 |
(0.5)% |
(0.6)% |
|
13,130 |
(1.2)% |
(1.2)% |
Retail services (B2C+B2B) |
|
2,804 |
2.1 % |
2.1 % |
|
8,343 |
1.6 % |
1.6 % |
Convergence |
|
1,277 |
4.9 % |
4.9 % |
|
3,770 |
4.0 % |
4.0 % |
Mobile-only |
|
592 |
0.0 % |
0.0 % |
|
1,774 |
1.6 % |
1.6 % |
Fixed-only |
|
934 |
(0.4)% |
(0.4)% |
|
2,799 |
(1.6)% |
(1.6)% |
Wholesale |
|
1,131 |
(7.4)% |
(7.5)% |
|
3,389 |
(7.8)% |
(7.9)% |
Equipment sales |
|
350 |
3.0 % |
3.0 % |
|
934 |
4.7 % |
4.7 % |
Other revenues |
|
154 |
1.0 % |
(0.5)% |
|
464 |
(8.6)% |
(8.6)% |
Growth in retail services continued to
drive revenues in the third quarter
France, with revenues of 4,439
million euros, reduced the decline to 0.5% year on year
(-22 million euros, after -1.3% in 2Q and -1.8% in 1Q). This
was due to the expected decline in wholesale services of 7.4%
(-91 million euros) that was partially offset by the growth of
retail services (+56 million euros).
Excluding PSTN, revenues from retail services
continued their growth rising 3.4%, thanks to the value strategy,
mainly implemented through base price increases the full impact of
which is only being seen in the second half of the year. All ARPOs
increased and convergent ARPO reached 74 euros,
+2.7 euros year on year.
In this context, commercial activity remained good
in the third quarter, with net additions of +83,0005 in mobile
(compared with +29,000 in 2Q) and -31,000 in fixed-line broadband
(compared with -33,000 in 2Q), including +259,000 in fiber
(compared with +250,000 in 2Q), while maintaining a disciplined
marketing policy and “more and more” actions that will continue to
fuel growth in the coming quarters. The churn rate remained under
control at 11.9%.
Lastly, revenues from equipment sales were up 3% in
the third quarter, largely as a result of sales of higher-value
mobile handsets.
Europe
In millions of euros |
|
3Q 2023 |
changecomparablebasis |
changehistoricalbasis |
|
9M 2023 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
2,923 |
0.0 % |
5.8 % |
|
8,469 |
2.1 % |
4.7 % |
Retail services (B2C+B2B) |
|
2,069 |
2.3 % |
12.2 % |
|
5,859 |
3.3 % |
6.8 % |
Convergence |
|
818 |
3.7 % |
15.2 % |
|
2,284 |
4.3 % |
8.2 % |
Mobile-only |
|
747 |
0.9 % |
2.5 % |
|
2,196 |
2.0 % |
2.5 % |
Fixed-only |
|
381 |
(0.8)% |
27.3 % |
|
995 |
(0.3)% |
9.0 % |
IT & Integration services |
|
123 |
11.9 % |
15.2 % |
|
384 |
16.7 % |
19.8 % |
Wholesale |
|
444 |
(10.8)% |
(8.5)% |
|
1,258 |
(8.4)% |
(7.7)% |
Equipment sales |
|
412 |
3.9 % |
6.8 % |
|
1,234 |
10.6 % |
11.7 % |
Other revenues |
|
(1) |
- |
- |
|
118 |
(10.5)% |
(12.8)% |
Continued growth in retail
services
Revenues in
Europe were stable in the third quarter (+1
million euros, after +2.7% in 2Q).
The growth of 2.3% in retail services
(+46 million euros, after rising 4.2% in 2Q) was driven by the
value strategy, even though the impact of the price increases in
2022 in all geographical areas was only moderate. The positive
performances of Convergence (+3.7%) and B2B (+3.1%) offset slowing
year-on-year growth of 3.9% in equipment sales (+11.1% in 2Q), as
well as the decrease of 10.8% in wholesale services (-6.7% in 2Q),
due to the regulatory decline in call termination rates (with
little impact on margins) and international traffic, particularly
in Spain.
Commercial activity improved in the third quarter
compared with the second quarter, with net additions of +76,000 in
fiber (FTTH) (compared with +71,000 in 2Q), while net additions in
Mobile contracts excluding M2M declined 59,000, affected by the
termination of a temporary contract in Romania. Adjusted for this
change in the commercial base, mobile net additions would be
100,000.
Revenues in Spain were stable at
+0.1% (+2.1% in 2Q), due to growth of 2.4% in retail services
(+1.9% in 2Q), tied to the increase in ARPOs and the improvement in
the churn rate. This performance was partially offset by the
decline in wholesale services revenues (-10.6%) which were
impacted, as in previous quarters, by the regulatory reduction in
call termination rates, with little effect on margins. Equipment
sales continued to grow rising 4.1% year on year.
In a highly competitive market, Spain continued to
sustain its growth focusing on customer value management combined
with a rigorous marketing policy. This was reflected again in the
quarter with a 3.9% improvement in convergent ARPO, while churn
continued to decrease resulting in a 2.6-point decline in the
annualized churn rate.
The FTTH customer base grew 9,000 (+6,000 in 2Q),
while that of Mobile contracts (excluding M2M) rose 3,000 (+51,000
in 2Q).
Africa & Middle East
In millions of euros |
|
3Q 2023 |
changecomparablebasis |
changehistoricalbasis |
|
9M 2023 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
1,816 |
12.2 % |
1.9 % |
|
5,287 |
11.1 % |
2.4 % |
Retail services (B2C+B2B) |
|
1,615 |
11.8 % |
2.3 % |
|
4,698 |
10.8 % |
3.0 % |
Mobile-only |
|
1,380 |
11.2 % |
1.6 % |
|
4,031 |
10.3 % |
2.4 % |
Fixed-only |
|
217 |
12.2 % |
3.4 % |
|
628 |
13.0 % |
5.6 % |
IT & Integration services |
|
18 |
86.2 % |
79.5 % |
|
38 |
32.2 % |
24.4 % |
Wholesale |
|
173 |
16.4 % |
0.1 % |
|
497 |
15.0 % |
0.1 % |
Equipment sales |
|
21 |
(1.5)% |
(14.2)% |
|
64 |
(6.7)% |
(19.1)% |
Other revenues |
|
7 |
47.7 % |
3.7 % |
|
29 |
40.7 % |
12.4 % |
Africa & Middle East continued to
deliver double-digit growth in the third quarter of 2023 driven by
its four growth engines
Africa & Middle East revenues
increased strongly in the third quarter rising 12.2%
(+197 million euros, after +12.0% in 2Q). Ten of the 16
consolidated countries achieved double-digit growth. The region
continued to demonstrate its agility and resilience amid security
tensions and currency devaluations in some countries.
This performance was underpinned by the rapid
development of retail services (+11.8%, vs. +11.2% in 2Q) due to
double-digit growth in the four growth engines, namely mobile data
(+17.8%, vs. +16.7% in 2Q), fixed broadband (+17.0%, vs. +16.8% in
2Q), Orange Money (+28.2%, vs. +25.5% in 2Q) and B2B across the
board (+20.3%, vs. +13.2% in 2Q), with a positive effect on volume
and value.
The mobile customer base reached
148.0 million, a year-on-year increase of 4.0% (+5.0% in 2Q),
with a +5.2% increase in average mobile ARPO (+4.3% in 2Q).
Enterprise
In millions of euros |
|
3Q 2023 |
changecomparablebasis |
changehistoricalbasis |
|
9M 2023 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
1,901 |
0.6 % |
(0.3)% |
|
5,846 |
0.8 % |
0.9 % |
Fixed-only |
|
788 |
(7.5)% |
(8.6)% |
|
2,429 |
(6.6)% |
(6.6)% |
Voice |
|
214 |
(14.2)% |
(14.7)% |
|
678 |
(11.5)% |
(11.4)% |
Data |
|
574 |
(4.7)% |
(6.1)% |
|
1,752 |
(4.6)% |
(4.6)% |
IT & Integration services |
|
886 |
9.3 % |
8.6 % |
|
2,681 |
7.8 % |
8.1 % |
Mobile |
|
227 |
(0.4)% |
(0.4)% |
|
736 |
2.9 % |
2.9 % |
Mobile-only |
|
173 |
6.4 % |
6.4 % |
|
521 |
6.8 % |
6.8 % |
Wholesale |
|
10 |
4.1 % |
4.1 % |
|
31 |
1.6 % |
1.6 % |
Equipment sales |
|
44 |
(20.9)% |
(20.9)% |
|
184 |
(6.5)% |
(6.5)% |
Acceleration of IT & Integration
services and implementation of the recovery plan
Enterprise revenues reached 1,901 million
euros in the third quarter of 2023, with slight growth of 0.6%
(+11 million euros, following + 2.4% in 2Q).
The growth of IT & Integration services of 9.3%
(+76 million euros, after +8.8% in 2Q) offset the structural
decline of 7.5% in fixed Voice and Data legacy activities
(-64 million euros, -5.8% in 2Q). Mobile revenues stagnated,
down 0.4% (-1 million euros, after + 9.4% in 2Q) due to the
decrease in equipment sales, which offset the increase in mobile
services revenues.
In the third quarter, IT & Integration services
accounted for 46.6% of revenues (45.5% in the first half). The
Digital & Data and Orange Cyberdefense activities produced
third-quarter growth of 7.1% (+4.7% in 2Q) and 13.0% (+12.2% in 2Q)
respectively.
The acquisition of NEHS Digital and Xperis
reinforces Orange Business’ strategy of developing solutions for
healthcare professionals.
The simplification of the Orange Business product
portfolio is on track to halve the number of products and services
in 1Q 2024.
The training and retraining plan for key digital
professions (virtualization, Cloud, data, artificial intelligence
and cybersecurity) resulted in 7,874 certifications out of the
20,000 targeted by 2025.
Totem
In millions of euros |
|
3Q 2023 |
changecomparablebasis |
changehistoricalbasis |
|
9M 2023 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
170 |
1.1 % |
1.1 % |
|
513 |
3.2 % |
3.2 % |
Wholesale |
|
170 |
1.1 % |
1.1 % |
|
513 |
3.2 % |
3.2 % |
Other revenues |
|
- |
- |
- |
|
- |
- |
- |
Revenues for the Totem TowerCo6 reached
170 million euros in the third quarter, an increase of 1.1%
(+2 million euros, following +0.7% in 2Q), driven by a 3.1% rise in
hosting revenues. In the third quarter of 2023, 16.7% of hosting
revenues came from external customers.
This change reflects the increase in the number of
sites, which reached 27,203 at 30 September 2023 (compared
with 26,990 at 30 September 2022, +213 sites), with a tenancy
ratio at 1.38 co-tenants per site, which is well on the way to
achieving the target of 1.5 co-tenants by 2026.
International Carriers & Shared
Services
In millions of euros |
|
3Q 2023 |
changecomparablebasis |
changehistoricalbasis |
|
9M 2023 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
351 |
(6.7)% |
(7.1)% |
|
1,114 |
(2.8)% |
(3.1)% |
Wholesale |
|
231 |
(11.8)% |
(12.2)% |
|
747 |
(6.6)% |
(6.7)% |
Other revenues |
|
120 |
4.9 % |
4.3 % |
|
367 |
5.7 % |
5.2 % |
International wholesale services revenues declined
11.8% in the third quarter (-31 million euros, following +
4.7% in 2Q due to the sale of Arimao cable for 47 million euros).
The downward trend in voice traffic was partially offset by roaming
services and Data activities.
The 4.9% increase in other revenues
(+6 million euros, +6.3% in 2Q) was primarily due to the
resale of Orange Marine’s submarine cables and sustained growth in
its installation and maintenance activities.
Mobile Financial Services
Mobile Financial Services had 3.26 million
customers at 30 September 2023, including 2.0 million in
Europe (Orange Bank) and 1.26 million in Africa (Orange Bank
Africa), a year-on-year increase of 0.36 million
customers.
The announcement that exclusive negotiations had
been entered into with BNP Paribas with a view to withdrawing from
the European retail banking market had little effect on the
activities of Orange Bank, which maintained the high quality of its
offering. In France, it is still ranked number one among online
banks for customer satisfaction by the Trustpilot review platform
and Google Customer Reviews.
In Africa, loan production continued to increase,
due to the rise in the value of loans granted.
The Banking Commission of the West African Monetary
Union (WAMU) has approved the opening of an Orange Bank Africa
branch in Senegal. It is scheduled to launch in 2024.
Calendar of upcoming events
15 February 2024
-
Publication of 2023 financial results
24 April
2024 -
Publication of First Quarter 2024 financial results
Contacts
press: Tom Wrighttom.wright@orange.com Caroline
Celliercaroline.cellier@orange.com |
financial communication: (analysts and investors)Patrice Lambert-de
Diesbachp.lambert@orange.com Louise
Racinelouise.racine@orange.comHong Hai
Vuonghonghai.vuong@orange.comLouis
Celierlouis.celier@orange.com |
Disclaimer
This press release contains forward-looking
statements about Orange’s financial situation, results of
operations and strategy. Although we believe these statements are
based on reasonable assumptions, they are subject to numerous risks
and uncertainties, including matters not yet known to us or not
currently considered material by us, and there can be no assurance
that anticipated events will occur or that the objectives set out
will actually be achieved. More detailed information on the
potential risks that could affect our financial results is included
in the Universal Registration Document filed on 29 March 2023
with the French Financial Markets Authority (AMF) and in the annual
report (Form 20-F) filed on 30 March 2023 with the U.S. Securities
and Exchange Commission. Forward-looking statements speak only as
of the date they are made. Other than as required by law, Orange
does not undertake any obligation to update them in light of new
information or future developments.
Appendix 1: financial key
indicators
Quarterly data
In millions of euros |
|
3Q 2023 |
3Q 2022comparablebasis |
3Q 2022historicalbasis |
variationcomparablebasis |
changehistoricalbasis |
Revenues |
|
10,999 |
10,805 |
10,823 |
1.8 % |
1.6 % |
France |
|
4,439 |
4,461 |
4,465 |
(0.5)% |
(0.6)% |
Europe |
|
2,923 |
2,922 |
2,764 |
0.0 % |
5.8 % |
Africa & Middle East |
|
1,816 |
1,619 |
1,782 |
12.2 % |
1.9 % |
Enterprise |
|
1,901 |
1,891 |
1,906 |
0.6 % |
(0.3)% |
Totem |
|
170 |
168 |
168 |
1.1 % |
1.1 % |
International Carriers & Shared Services |
|
351 |
376 |
378 |
(6.7)% |
(7.1)% |
Intra-Group eliminations |
|
(601) |
(632) |
(640) |
|
|
EBITDAaL (1) |
|
3,596 |
3,547 |
3,582 |
1.4 % |
0.4 % |
o/w Telecom activities |
|
3,623 |
3,576 |
3,611 |
1.3 % |
0.3 % |
As % of revenues |
|
32.9 % |
33.1 % |
33.4 % |
(0.2 pt) |
(0.4 pt) |
o/w Mobile Financial Services |
|
(28) |
(29) |
(29) |
5.3 % |
5.3 % |
eCAPEX |
|
1,597 |
1,717 |
1,731 |
(7.0)% |
(7.7)% |
o/w Telecom activities |
|
1,588 |
1,711 |
1,725 |
(7.2)% |
(7.9)% |
as % of revenues |
|
14.4 % |
15.8 % |
15.9 % |
(1.4 pt) |
(1.5 pt) |
o/w Mobile Financial Services |
|
8 |
6 |
6 |
36.5 % |
36.5 % |
EBITDAaL - eCAPEX |
|
1,999 |
1,829 |
1,851 |
9.3 % |
8.0 % |
(1) EBITDAaL presentation adjustments are described in Appendix
2. |
|
|
|
|
|
|
30 September data
In millions of euros |
|
9M 2023 |
9M 2022comparablebasis |
9M 2022historicalbasis |
variationcomparablebasis |
changehistoricalbasis |
Revenues |
|
32,544 |
31,938 |
32,120 |
1.9 % |
1.3 % |
France |
|
13,130 |
13,287 |
13,291 |
(1.2)% |
(1.2)% |
Europe |
|
8,469 |
8,293 |
8,089 |
2.1 % |
4.7 % |
Africa & Middle East |
|
5,287 |
4,760 |
5,162 |
11.1 % |
2.4 % |
Enterprise |
|
5,846 |
5,802 |
5,795 |
0.8 % |
0.9 % |
Totem |
|
513 |
497 |
497 |
3.2 % |
3.2 % |
International Carriers & Shared Services |
|
1,114 |
1,147 |
1,150 |
(2.8)% |
(3.1)% |
Intra-Group eliminations |
|
(1,814) |
(1,848) |
(1,864) |
|
|
EBITDAaL (1) |
|
9,491 |
9,395 |
9,515 |
1.0 % |
(0.3)% |
o/w Telecom activities |
|
9,580 |
9,480 |
9,600 |
1.1 % |
(0.2)% |
As % of revenues |
|
29.4 % |
29.7 % |
29.9 % |
(0.2 pt) |
(0.5 pt) |
o/w Mobile Financial Services |
|
(90) |
(85) |
(85) |
(5.2)% |
(5.2)% |
eCAPEX |
|
4,751 |
5,061 |
5,143 |
(6.1)% |
(7.6)% |
o/w Telecom activities |
|
4,722 |
5,042 |
5,123 |
(6.3)% |
(7.8)% |
as % of revenues |
|
14.5 % |
15.8 % |
15.9 % |
(1.3 pt) |
(1.4 pt) |
o/w Mobile Financial Services |
|
29 |
20 |
20 |
44.4 % |
44.4 % |
EBITDAaL - eCAPEX |
|
4,740 |
4,334 |
4,372 |
9.4 % |
8.4 % |
(1) EBITDAaL presentation adjustments are described in Appendix
2. |
|
|
|
|
|
|
Appendix 2: adjusted data to
income statement items
Quarterly data
|
|
3Q 2023 |
|
3Q 2022historical basis |
In millions of euros |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
Revenues |
|
10,999 |
- |
10,999 |
|
10,823 |
- |
10,823 |
External purchases |
|
(4,692) |
(1) |
(4,693) |
|
(4,569) |
(3) |
(4,572) |
Other operating income |
|
204 |
- |
204 |
|
182 |
1 |
183 |
Other operating expense |
|
(100) |
(4) |
(104) |
|
(89) |
(11) |
(100) |
Labor expenses |
|
(2,007) |
(164) |
(2,171) |
|
(1,996) |
(100) |
(2,095) |
Operating taxes and levies |
|
(321) |
(1) |
(322) |
|
(329) |
(1) |
(330) |
Gains (losses) on disposal of fixed assets, investments and
activities |
|
na |
5 |
5 |
|
na |
100 |
100 |
Restructuring costs |
|
na |
(25) |
(25) |
|
na |
(39) |
(39) |
Depreciation and amortization of financed assets |
|
(34) |
- |
(34) |
|
(27) |
- |
(27) |
Depreciation and amortization of right-of-use assets |
|
(380) |
(0) |
(380) |
|
(374) |
- |
(374) |
Impairment of right-of-use assets |
|
(0) |
0 |
- |
|
- |
5 |
5 |
Interests expenses on liabilities related to financed assets |
|
(3) |
3 |
na |
|
(1) |
1 |
na |
Interests expenses on lease liabilities |
|
(71) |
71 |
na |
|
(39) |
39 |
na |
EBITDAaL |
|
3,596 |
(117) |
na |
|
3,582 |
(8) |
na |
Significant litigation |
|
(1) |
1 |
na |
|
(3) |
3 |
na |
Specific labor expenses |
|
(164) |
164 |
na |
|
(92) |
92 |
na |
Fixed assets, investments and business portfolio review |
|
5 |
(5) |
na |
|
100 |
(100) |
na |
Restructuring program costs |
|
(27) |
27 |
na |
|
(34) |
34 |
na |
Acquisition and integration costs |
|
(4) |
4 |
na |
|
(19) |
19 |
na |
Interests expenses on liabilities related to financed assets |
|
na |
(3) |
(3) |
|
na |
(1) |
(1) |
Interests expenses on lease liabilities |
|
na |
(71) |
(71) |
|
na |
(39) |
(39) |
30 September data
|
|
9M 2023 |
|
9M 2022historical basis |
In millions of euros |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
Revenues |
|
32,544 |
- |
32,544 |
|
32,120 |
- |
32,120 |
External purchases |
|
(14,023) |
(17) |
(14,040) |
|
(13,608) |
(15) |
(13,622) |
Other operating income |
|
579 |
- |
579 |
|
548 |
1 |
549 |
Other operating expense |
|
(291) |
37 |
(254) |
|
(311) |
(20) |
(330) |
Labor expenses |
|
(6,366) |
(429) |
(6,795) |
|
(6,357) |
(67) |
(6,424) |
Operating taxes and levies |
|
(1,542) |
(4) |
(1,545) |
|
(1,564) |
(1) |
(1,565) |
Gains (losses) on disposal of fixed assets, investments and
activities |
|
na |
55 |
55 |
|
na |
136 |
136 |
Restructuring costs |
|
na |
(61) |
(61) |
|
na |
(85) |
(85) |
Depreciation and amortization of financed assets |
|
(93) |
- |
(93) |
|
(75) |
- |
(75) |
Depreciation and amortization of right-of-use assets |
|
(1,122) |
(4) |
(1,125) |
|
(1,136) |
- |
(1,136) |
Impairment of right-of-use assets |
|
- |
(28) |
(28) |
|
(1) |
11 |
10 |
Interests expenses on liabilities related to financed assets |
|
(10) |
10 |
na |
|
(2) |
2 |
na |
Interests expenses on lease liabilities |
|
(187) |
187 |
na |
|
(100) |
100 |
na |
EBITDAaL |
|
9,491 |
(254) |
na |
|
9,515 |
61 |
na |
Significant litigation |
|
55 |
(55) |
na |
|
(4) |
4 |
na |
Specific labor expenses |
|
(429) |
429 |
na |
|
(57) |
57 |
na |
Fixed assets, investments and business portfolio review |
|
55 |
(55) |
na |
|
136 |
(136) |
na |
Restructuring program costs |
|
(97) |
97 |
na |
|
(75) |
75 |
na |
Acquisition and integration costs |
|
(35) |
35 |
na |
|
(40) |
40 |
na |
Interests expenses on liabilities related to financed assets |
|
na |
(10) |
(10) |
|
na |
(2) |
(2) |
Interests expenses on lease liabilities |
|
na |
(187) |
(187) |
|
na |
(100) |
(100) |
Appendix 3: economic CAPEX to
investments in property, plant and intangible
investment
In millions of euros |
|
3Q 2023 |
3Q 2022historicalbasis |
|
9M 2023 |
9M 2022historicalbasis |
eCAPEX |
|
1,597 |
1,731 |
|
4,751 |
5,143 |
Elimination of proceeds from sales of property, plant and equipment
and intangible assets |
|
47 |
68 |
|
200 |
192 |
Telecommunication licenses |
|
21 |
227 |
|
403 |
471 |
Financed assets |
|
45 |
67 |
|
189 |
136 |
Investments in property, plant and equipment and intangible
assets |
|
1,709 |
2,092 |
|
5,543 |
5,942 |
Appendix 4: key performance
indicators
In thousand, at the end of the period |
|
September 302023 |
|
September 302022 |
Number of convergent customers |
|
11,896 |
|
11,577 |
Number of mobile accesses (excluding MVNOs)
(1) |
|
250,854 |
|
240,424 |
o/w |
Convergent customers mobile accesses |
|
21,889 |
|
21,196 |
|
Mobile only accesses |
|
228,965 |
|
219,228 |
o/w |
Contract customers mobile accesses |
|
100,826 |
|
92,123 |
|
Prepaid customers mobile accesses |
|
150,028 |
|
148,301 |
Number of fixed accesses (2) |
|
44,808 |
|
45,654 |
|
Fixed Retail accesses |
|
30,914 |
|
31,006 |
|
|
Fixed Broadband accesses |
|
25,064 |
|
24,180 |
|
|
o/w |
Very high‑speed broadband fixed accesses |
|
16,006 |
|
13,697 |
|
|
|
Convergent customers fixed accesses |
|
11,896 |
|
11,577 |
|
|
|
Fixed accesses only |
|
13,168 |
|
12,603 |
|
|
Fixed Narrowband accesses |
|
5,850 |
|
6,826 |
|
Fixed Wholesale accesses |
|
13,894 |
|
14,648 |
Group total accesses (1+2) |
|
295,662 |
|
286,078 |
2022 data is on a comparable basis and includes access to the
telecom operator VOO acquired in June 2023 by Orange Belgium. |
|
|
|
|
Key performance indicators (KPI) by country are
presented in the "Orange investors data book Q3 2023" available on
www.orange.com, under Finance/Results:
www.orange.com/en/latest-consolidated-results
Appendix 5:
glossary
Key figures
Data on a comparable basis: data based on
comparable accounting principles, scope of consolidation and
exchange rates are presented for previous periods. The transition
from data on an historical basis to data on a comparable basis
consists of keeping the results for the period ended and then
restating the results for the corresponding period of the preceding
year for the purpose of presenting, over comparable periods,
financial data with comparable accounting principles, scope of
consolidation and exchange rate. The method used is to apply to the
data of the corresponding period of the preceding year, the
accounting principles and scope of consolidation for the period
just ended as well as the average exchange rate used for the income
statement for the period ended. Changes in data on a comparable
basis reflect organic business changes. Data on a comparable basis
is not a financial aggregate as defined by IFRS and may not be
comparable to similarly named indicators used by other
companies.
EBITDAaL or “EBITDA after Leases”: operating
income (i) before depreciation and amortization of fixed assets,
effects resulting from business combinations, reclassification of
cumulative translation adjustment from liquidated entities,
impairment of goodwill and fixed assets, share of profits (losses)
of associates and joint ventures, (ii) after interest on debts
related to financed assets and on lease liabilities, and (iii)
adjusted for significant litigation, specific labor expenses, fixed
assets, investments and businesses portfolio review, restructuring
programs costs, acquisition and integration costs and, where
appropriate, other specific elements. EBITDAaL is not a financial
aggregate as defined by IFRS standards and may not be directly
comparable to similarly named indicators in other companies.
eCAPEX or “economic CAPEX”: (i) acquisitions of
property, plant and equipment and intangible assets, excluding
telecommunications licenses and financed assets, (ii) less the
price of disposal of property, plant and equipment and intangible
assets. eCAPEX is not a financial performance indicator as defined
by IFRS standards and may not be directly comparable to indicators
referenced by similarly named indicators in other companies.
Organic Cash Flow (telecoms activities): for the
perimeter of the telecoms activities, net cash provided by
operating activities, minus (i) lease liabilities repayments and
debts related to financed assets repayments, and (ii) purchases and
sales of property, plant and equipment and intangible assets, net
of the change in the fixed assets payables, (iii) excluding
telecommunication licenses paid and significant litigations paid or
received. Organic Cash Flow (telecoms activities) is not a
financial aggregate defined by IFRS and may not be comparable to
similarly named indicators used by other companies.
Retail services (B2C + B2B): aggregation of
revenues from (i) Convergent services, (ii) Mobile-only services,
(iii) Fixed-only services and (iv) IT & integration services
(see definitions). Retail Services (B2C+B2B) revenues include all
revenues of a given scope excluding revenues from wholesale
services, equipment sales and other revenues (see definitions).
Performance indicators
Fixed retail accesses: number of fixed broadband
accesses (xDSL (ADSL and VDSL), FTTx, cable, Fixed-4G (fLTE) and
other broadband accesses (satellite, Wimax and others)) and fixed
narrowband accesses (mainly PSTN) and payphones.
Fixed wholesale accesses: number of fixed
broadband and narrowband wholesale accesses operated by Orange.
Convergence
Convergent services: customer base and revenues
from B2C Convergent retail offers, excluding equipment sales (see
definition) defined as an offer combining at least a broadband
access (xDSL, FTTx, cable or Fixed-4G (fLTE) with cell-lock) and a
mobile voice contract (excluding MVNOs).
Convergent ARPO: average quarterly revenues per
convergent offer (ARPO) calculated by dividing revenues from retail
Convergent services offers invoiced to B2C customers generated over
the past three months (excluding IFRS 15 adjustments) by the
weighted average number of retail Convergent offers over the same
period. ARPO is expressed by monthly revenues per convergent
offer.
Mobile-only services
Mobile-only services: revenues from mobile
offers (mainly outgoing calls: voice, SMS and data) invoiced to
retail customers, excluding convergent services and equipment sales
(see definitions). The customer base includes customers with a
contract excluding retail convergence, machine-to-machine contracts
and prepaid cards.
Mobile-only ARPO: average quarterly revenues
from Mobile-only (ARPO) calculated by dividing revenues from
Mobile-only retail services (excluding machine-to-machine and IFRS
15 adjustments) generated over the past three months by the
weighted average of Mobile-only customers (excluding
machine-to-machine) over the same period. The ARPO is expressed as
monthly revenues per Mobile-only customer.
Fixed-only services
Fixed-only services: revenues from fixed retail
offers, excluding B2C convergent offers and equipment sales (see
definitions). It includes (i) fixed narrowband services
(conventional fixed telephony), (ii) fixed broadband services, and
(iii) business solutions and networks (with the exception of
France, for which essential business solutions and networks are
supported by Enterprise). For the Enterprise segment, Fixed-only
service revenues include sales of network equipment related to the
operation of voice and data services. The customer base consists of
fixed narrowband and fixed broadband customers, excluding retail
convergence customers.
Fixed-only Broadband ARPO: average quarterly
revenues from Fixed-only Broadband (ARPO) calculated by dividing
the revenue from Fixed-only Broadband retail services (excluding
IFRS 15 adjustments) generated over the past three months by the
weighted average of Fixed-only Broadband customers over the same
period. ARPO is expressed as monthly revenues per Fixed-only
Broadband customer.
IT & integration
services
IT & Integration services: revenues from
unified communication and collaboration services (Local Area
Network and telephony, advising, integration and project
management), hosting and infrastructure services (including Cloud
Computing), applications services (customer relations management
and other applications services), security services, video
conferencing offers, machine-to-machine services (excluded
connectivity) as well as sales of equipment related to the above
products and services.
Wholesale
Wholesale: revenues from other carriers consists
of (i) mobile services to other carriers including incoming
traffic, visitor roaming, network sharing, national roaming and
Mobile Virtual Network Operators (MVNOs), (ii) fixed services to
other carriers including national networking, services to
international carriers, high-speed and very high-speed broadband
access (fibre access, unbundling of telephone lines and xDSL access
sales) and the sale of telephone lines on the wholesale market, and
(iii) equipment sales to other carriers.
Equipment sales
Equipment sales: revenues from all mobile and
fixed equipment sales, excluding (i) equipment sales associated
with the supply of IT & Integration services, (ii) sales of
network equipment related to the operation of voice and data
services in the Enterprise operating segment, (iii) equipment sales
to other carriers, and (iv) equipment sales to dealers and
brokers.
Other revenues
Other revenues: revenues including (i) equipment
sales to brokers and dealers, (ii) portal, (iii) on-line
advertising revenues, (iv) corporate transversal business line
activities, and (v) other miscellaneous revenues.
1 Unless otherwise stated, percentage changes are
on a year-on-year basis, calculated against the third quarter of
2022 and on a comparable basis.2 Services invoiced to customers
(B2C and B2B). See definition in the attached glossary.3 Changes
are presented on a comparable basis.4 These targets are on a
comparable basis and do not take into account mergers and
acquisitions not yet finalized.
5 Excluding prepaid6 European company within the
Orange group that owns and manages the passive mobile
infrastructure portfolio of telecommunication towers, initially in
France and Spain. It has been presented as a separate business
segment since 1 January 2022.
- PR_Orange_Q3_2023_EN_241023
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