Press release : full year 2022 results - Orange achieves all its
2022 targets
Press release
Paris, 16 February 2023
Financial information at 31 December 2022
Orange achieves all its 2022
targets
EBITDAaL growth and lower eCAPEX fuel strong
increase in organic cash flow
In millions of euros |
|
4Q 2022 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2022 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
11,351 |
1.3 % |
1.8 % |
|
43,471 |
0.6 % |
2.2 % |
EBITDAaL |
|
3,448 |
8.5 % |
8.5 % |
|
12,963 |
2.5 % |
3.2 % |
Operating Income |
|
|
|
|
|
4,801 |
ns |
90.4 % |
Consolidated net income |
|
|
|
|
|
2,617 |
|
236.6 % |
eCAPEX (excluding licenses) |
|
2,227 |
8.9 % |
5.8 % |
|
7,371 |
(0.7)% |
(3.8)% |
EBITDAaL - eCAPEX |
|
1,221 |
7.6 % |
13.8 % |
|
5,593 |
7.2 % |
14.0 % |
|
|
|
|
|
|
|
|
|
Organic cash-flow (telecom activities) |
|
|
|
|
|
3,058 |
|
27.4 % |
- Annual
revenues for 2022 climbed 0.6%1 due to continued
strong growth in Africa & Middle East (+6.4%) and the solid
performance of retail services (+2.0%), boosted by price increases
introduced in each of the Group’s European countries.
-
EBITDAaL reached almost 13 billion euros, rising
2.5% in line with the target, thanks to cost discipline. The robust
performance of Africa & Middle East (+11.3%) fully offset the
sharp decline in Enterprise (-18.8%). Europe grew 1.6% thanks to
the recovery in Spain. All other segments contributed to EBITDAaL
growth in 2022.
EBITDAaL rose significantly in the fourth quarter
(+8.5%) as a result of price increases achieved in Europe and a
base effect linked to the 2021 employee shareholding plan.
Excluding this base effect, EBITDAaL grew 2.9%.
-
Operating income of 4,801 million euros was 2,280
million euros higher year on year2 held back by the impairment of
Romania.
-
Consolidated net income totaled 2,617 million
euros, compared with 778 million euros in 20212.
-
eCAPEX fell 0.7% to less than 7.4 billion euros,
in line with the target, due to fiber roll-out in France reaching
maturity.
- Organic
cash flow from Telecom activities grew strongly to 3,058
million euros (+27.4% on a historical basis), in line with the
target of at least 2.9 billion euros.
- The net debt to
EBITDAaL ratio for telecom activities of 1.93x was in line with the
medium-term target of around 2x.
- The Shareholders’ Meeting on 23 May
2023 will decide on the payment of a dividend of
0.70 euros per share for fiscal year 2022.
Financial targets
In 2023, Orange aims to achieve the following
targets3:
- 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
For the 2023 fiscal year, we will increase the
dividend floor to 0.72 euros per share, including an interim
dividend of 0.30 euros per share to be paid in December 2023,
subject to approval by the Shareholders’ Meeting.
Commenting on the publication of these results,
Christel Heydemann, Chief Executive Officer of the Orange group,
said:
“As we launch our new strategic plan “Lead the
future”, I am proud to present these very solid results that
deliver on all the objectives we set for the year, even in a
context marked by strong inflation and geopolitical instability. I
would like to highlight in particular the achievement of the growth
ambition we set for EBITDAaL, with an increase of 2.5% for
2022. This performance was due to our “Scale up” operational
efficiency programme that has delivered 700 million euros of
cumulative net indirect cost savings since 2019, beating our
objectives, as well as our ability to raise prices across our
European footprint.
The Africa and Middle East region has delivered
excellent results, with a notable performance from Orange Money in
the fourth quarter which succeeded in repositioning itself in a
competitive market. In France, where the market continues to
evolve at pace, we had good commercial momentum driven by the high
quality of our customers’ experience as well as our net fiber and
mobile sales. Also worthy of note was the excellent commercial
performance in Europe which relies on convergence to drive the
success of premium offers. In Spain, the turnaround is well
underway and we’re seeing the fruits of our work there particularly
in the increased margins achieved in the second half. In the
Enterprise segment, the ongoing transformation of business models
calls for the rigorous action plan that we’re presenting today.
These results further confirm my confidence in
the sense and relevance of our strategy for the years ahead. They
clearly demonstrate the Group’s capacity to create value by
concentrating on our fundamentals. I’d like to thank all of the
Group’s teams around the world for their contribution to this
performance. Today, we have a solid base from which to put our new
strategic plan into action, working together and with
determination. We’re targeting long-term growth and continual
transformation to allow us to move forward both with agility and
confidence.”
________________________________________________________________________________
The Board of Directors of Orange SA met on 15
February 2023 to review the consolidated financial results at 31
December 2022. The Group’s Statutory Auditors have audited the
Consolidated Financial Statements and the certification audit
report will be issued in early March 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.
Comments on Group key
figures
Revenues
Orange group revenues totaled
43,471 million euros in 2022, a year-on-year increase of 0.6%.
Africa & Middle East was the main
contributor to this growth, with revenues rising by 414 million
euros (+6.4%), followed by Totem, whose revenues grew by
89 million euros (+14.9%). Europe saw a return to growth
(+0.6%), with a strong recovery underway in Spain and solid
performances in Poland (+4.7%) and Belgium (+2.0%).
France recorded a decline of 193 million euros
(-1.1%) due to lower revenues from wholesale services and despite a
3.1% increase in retail services excluding STN.
In the fourth quarter of 2022,
Orange group revenues rose 1.3% to 11,351 million euros.
Growth continued to be driven by retail services4, which rose 2.5%,
and IT & Integration services, which grew 10.8%, while the
decline in wholesale services slowed to -2.9%. Totem confirmed its
strong commercial momentum by signing a contract with Iliad.
Customer base growth at
31 December
2022
There were 11.6 million convergent
customers Group-wide, an increase of 0.8% year on
year.
Mobile services had
241.9 million accesses, an increase of 5.9% year on year,
including 94 million contracts, an increase of 8.9% year on
year.
Fixed services totaled
45.4 million accesses (down 2.6% year on year), including
14.2 million very high-speed broadband accesses, an area still
growing strongly (+15.6% year on year). Fixed narrowband accesses
decreased 13.8% year on year.
EBITDAaL
Group EBITDAaL of 12,963
million euros in 2022 was up 2.5%, in line with the target.
Africa & Middle East remained the main
contributor to this performance with growth of 11.3%, easily
offsetting the sharp decline in Enterprise, a priority focus for
the Group, which fell 18.8% year on year.
Europe grew 1.6% thanks to the recovery in
Spain, where the trend is clearly improving (-4%, compared with
-12.7% in 2021). All other segments also contributed to EBITDAaL
growth in 2022. IC&SS improved by 141 million euros due to
significant cost savings. France, buoyed by growth in retail
services and major rationalization efforts, rose 0.4%, while Totem
grew 5.4% and Orange Bank improved by 13 million euros.
The fourth quarter saw significant EBITDAaL
growth (+8.5%), even excluding the base effect of the employee
shareholding plan at the end of 2021 (+2.9%).
Cumulative net cost savings achieved from 20195
to 31 December 2022 under the Scale Up operational efficiency
program totaled 700 million euros, exceeding the 2022 target (600
million euros). Excluding additional costs related to inflation,
the Group would have achieved the net savings target of 1 billion
euros a year ahead of schedule.
These savings result mainly from changes in the
workforce due to natural attrition, as well as the French part-time
for seniors plans and the Group’s strict wage policy, along with
ongoing optimization and rationalization efforts, primarily at
headquarters and in support functions.
EBITDAaL from
telecom activities was
13,080 million euros, up 2.4%.
Operating income
Group operating income was 4,801 million euros,
compared with 2,521 million euros on a historical basis in 2021.
The 2022 result benefited from the increase in EBITDAaL. It was
also affected by the goodwill impairment in Romania and by an
additional provision for the better-than-expected success of the
French part-time for seniors plans, whereas 2021 had been adversely
affected by goodwill impairment in Spain and the initial provision
for the French part-time for seniors plans, and positively affected
by the gain on disposal of 50% of the FiberCos in France and
Poland.
Net income
Orange consolidated net income
at 31 December 2022 totaled 2,617 million euros, compared with 778
million euros in 2021 on a historical basis. The increase was
mainly due to growth in operating income.
eCAPEX
eCAPEX fell 0.7% to 7,371 million euros, in line
with the 2022 target. The Group’s three main countries scaled back
their investments in 2022 due to the slowdown in the roll out of
fiber, particularly in France where deployment is at an advanced
stage and eCAPEX declined 365 million euros. At the same time,
investments in Africa & Middle East, which will drive future
growth in this region, rose by 191 million euros.
The number of households connectable to FTTH
reached 64.9 million (+14.8%) and the FTTH customer base increased
to 13.7 million (+16%). In France and Poland, the customer bases
grew by 20.6% and 23.9%, respectively.
Organic cash flow
Organic cash flow from Telecom
activities at 31 December 2022 amounted to 3,058 million
euros, in line with the target of at least 2.9 billion euros. The
increase of 657 million euros was mainly due to the improvement in
EBITDAaL and the reduction in eCAPEX.
Changes in the asset
portfolio
On 8 November 2022, Orange acquired 100% of the
capital of SCRT and Telsys, two Swiss companies offering
cybersecurity services and IT solutions management. As a result of
these acquisitions, Orange Cyberdefense now operates in nine
European countries.
Net financial debt
Net debt stood at 25.3 billion euros at 31
December 2022, an increase of 1 billion euros compared with 2021.
This was mainly due to the payment for 5G licenses in Belgium and
Romania and 4G licenses in Egypt, and the redemption of a hybrid
bond for 426 million pounds sterling in November.
The ratio of net financial debt to EBITDAaL from
telecom activities stood at 1.93x at 31 December 2022, in line with
the medium-term target of around 2x.
The telecoms activities’ strong liquidity
position of 16.7 billion euros remains an important asset,
particularly in the current economic environment.
Review by operating
segment
France
In millions of euros |
|
4Q 2022 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2022 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
4,691 |
0.1 % |
0.7 % |
|
17,983 |
(1.1)% |
(0.6)% |
Retail services (B2C+B2B) |
|
2,762 |
0.8 % |
0.8 % |
|
10,976 |
1.2 % |
1.2 % |
Convergence |
|
1,234 |
2.8 % |
2.8 % |
|
4,857 |
3.4 % |
3.4 % |
Mobile-only |
|
586 |
1.4 % |
1.4 % |
|
2,332 |
2.4 % |
2.4 % |
Fixed-only |
|
942 |
(2.1)% |
(2.1)% |
|
3,787 |
(2.2)% |
(2.2)% |
Wholesale |
|
1,260 |
(2.1)% |
(3.2)% |
|
4,938 |
(6.6)% |
(7.1)% |
Equipment sales |
|
431 |
2.0 % |
7.1 % |
|
1,323 |
4.2 % |
7.9 % |
Other revenues |
|
238 |
0.4 % |
11.4 % |
|
746 |
(3.4)% |
5.4 % |
EBITDAaL |
|
|
|
|
|
6,645 |
0.4 % |
(3.2)% |
EBITDAaL / Revenues |
|
|
|
|
|
37.0 % |
0.5 pt |
(1.0 pt) |
Operating Income |
|
|
|
|
|
3,361 |
34.3 % |
26.7 % |
eCAPEX |
|
|
|
|
|
3,429 |
(9.6)% |
(16.7)% |
eCAPEX / Revenues |
|
|
|
|
|
19.1 % |
(1.8 pt) |
(3.7 pt) |
Solid
commercial performance and increased
EBITDAaL
France continued to post solid commercial
performances in the fourth quarter. In fiber, it
achieved 339,000 net additions during the quarter, bringing the
total to 7.2 million customers at 31 December 2022 (compared with
5.9 million at the end of 2021).
In mobile, Orange France
recorded net additions excluding M2M of 144,000 in the fourth
quarter and 581,000 for the whole of 2022, thereby achieving its
best annual performance since 2017. The churn rate is at a
historically low level.
Convergent ARPO continued to rise (+2.0%),
largely due to the success of the “Max” offer and the penetration
of fiber and 5G. The Net Promoter Score (NPS) in mainland France
was six points higher than in 2021.
The fourth-quarter financial results reflect
this strong operating performance. Revenue
increased slightly (0.1%), buoyed by retail
services, which grew 2.4% excluding STN6 and offset the
decline in wholesale services.
In 2022, EBITDAaL rose 0.4%
compared with 2021, resulting in a 0.5-point increase in the
EBITDAaL margin to 37%. The improvement in profitability is the
result of significant cost reduction efforts, with France being the
main contributor to the Scale Up operational efficiency
program.
Lastly, eCAPEX decreased by
almost 10% in 2022 due to the advanced stage of fiber deployment in
France, where 33.5 million households are now connectable, and due
to the slower pace of customer connections compared with 2021.
Against the backdrop of inflation, which will
weigh more heavily in 2023, France has already introduced measures
to bolster its operating profitability while continuing to reduce
eCAPEX. Orange is participating in the ongoing price increases in
the French market and will continue to reduce costs.
Europe
In millions of euros |
|
4Q 2022 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2022 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
2,873 |
2.1 % |
1.4 % |
|
10,962 |
0.6 % |
3.6 % |
Retail services (B2C+B2B) |
|
1,902 |
2.9 % |
2.6 % |
|
7,388 |
1.5 % |
4.9 % |
Convergence |
|
719 |
2.8 % |
2.2 % |
|
2,830 |
3.3 % |
4.0 % |
Mobile-only |
|
726 |
1.0 % |
0.7 % |
|
2,869 |
(0.7)% |
(0.6)% |
Fixed-only |
|
306 |
1.0 % |
(2.8)% |
|
1,219 |
(2.7)% |
12.1 % |
IT & Integration services |
|
150 |
18.7 % |
30.9 % |
|
471 |
19.1 % |
33.9 % |
Wholesale |
|
466 |
(6.9)% |
(8.3)% |
|
1,828 |
(7.0)% |
(3.1)% |
Equipment sales |
|
455 |
7.1 % |
6.9 % |
|
1,559 |
4.0 % |
4.6 % |
Other revenues |
|
51 |
21.4 % |
14.1 % |
|
187 |
20.5 % |
18.9 % |
EBITDAaL |
|
|
|
|
|
2,772 |
1.6 % |
(2.0)% |
EBITDAaL / Revenues |
|
|
|
|
|
25.3 % |
0.3 pt |
(1.5 pt) |
Operating Income |
|
|
|
|
|
(177) |
94.7 % |
93.9 % |
eCAPEX |
|
|
|
|
|
1,883 |
0.4 % |
(0.5)% |
eCAPEX / Revenues |
|
|
|
|
|
17.2 % |
(0.0 pt) |
(0.7 pt) |
EBITDAaL growth driven by Retail
Services
Revenues in Europe continued to
increase in the fourth quarter after returning to growth in the
third quarter. Retail services rose 2.9%, again driven by
convergence, the B2B market and the resumption of customer roaming,
as well as from price increases achieved in all countries in the
segment. The decline in revenue from wholesale services mainly
reflects the regulatory reduction in call termination rates.
EBITDAaL growth was 1.6% in
2022, after accelerating to 2.6% in the second half (versus 0.6% in
the first half). This growth was mainly due to the recovery of
roaming, price increases and strict cost discipline to offset
inflation. Excluding Spain, European countries performed
exceptionally well rising 5.8%. Price increases gradually
introduced throughout the year helped to limit the effects of
inflation in 2022 and are expected to fully offset the impact of
inflation (including energy) in 2023.
In Spain, the return to growth
is confirmed with a further increase in revenue in
the fourth quarter (+2.3%, compared with +0.2% in the third
quarter). The stabilization of retail services over the quarter is
due to the improved churn rate and the increase in convergent ARPO
(+2.0%). For the full year, Spain's revenues remained down, falling
1.5% compared with -4.7% in 2021.
The improving trend in EBITDAaL has continued
each half (-9% in 2H 2021, -6.7% in 1H 2022, -1.5% in 2H 2022). For
2022 as a whole, EBITDAaL declined 4.0%. This performance results
from the recovery plan initiated in 2020, involving the
transformation of B2B activities and an ongoing effort to reduce
costs. In 2022, it enabled the EBITDAaL – eCAPEX indicator and
organic cash flow to return to growth, confirming Orange Spain’s
objective of a return to strong EBITDAaL growth in 2023.
Africa & Middle East
In millions of euros |
|
4Q 2022 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2022 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
1,756 |
5.7 % |
4.1 % |
|
6,918 |
6.4 % |
8.4 % |
Retail services (B2C+B2B) |
|
1,550 |
6.5 % |
5.6 % |
|
6,112 |
7.2 % |
9.6 % |
Mobile-only |
|
1,336 |
5.5 % |
4.1 % |
|
5,272 |
6.1 % |
8.0 % |
Fixed-only |
|
205 |
10.8 % |
15.0 % |
|
800 |
12.8 % |
20.4 % |
IT & Integration services |
|
9 |
98.2 % |
39.0 % |
|
40 |
63.5 % |
30.1 % |
Wholesale |
|
167 |
(1.0)% |
(6.3)% |
|
663 |
1.1 % |
1.4 % |
Equipment sales |
|
25 |
(13.8)% |
(19.4)% |
|
104 |
(6.6)% |
(6.8)% |
Other revenues |
|
13 |
77.7 % |
54.5 % |
|
39 |
10.5 % |
7.7 % |
EBITDAaL |
|
|
|
|
|
2,584 |
11.3 % |
14.0 % |
EBITDAaL / Revenues |
|
|
|
|
|
37.3 % |
1.6 pt |
1.8 pt |
Operating Income |
|
|
|
|
|
1,665 |
24.5 % |
29.0 % |
eCAPEX |
|
|
|
|
|
1,271 |
17.7 % |
19.4 % |
eCAPEX / Revenues |
|
|
|
|
|
18.4 % |
1.8 pt |
1.7 pt |
Double-digit growth in
EBITDAaL
Africa & Middle East
revenue rose 5.7% in the fourth quarter, again
fueled by its growth engines (mobile data +18%, fixed broadband
+20% and B2B +16%).
The mobile customer base grew 6% to reach 143
million at the end of 2022. This includes 53 million 4G customers,
an increase of 19%. Orange Money’s active customer base grew 16% to
29 million, while the fixed broadband customer base reached 2.8
million, an increase of 24%.
Orange Money generated annual
revenue of 461 million euros and returned to growth in the fourth
quarter (+5.7%) due to the swift and decisive implementation of the
response plan, which resulted in an increase in the value of
transactions to a record 100 billion euros in 2022.
Year on year, EBITDAaL grew
11.3%, continuing to outpace revenue growth owing to tight control
over indirect costs. As a result, the EBITDAaL margin rose 1.6
points to over 37%.
Enterprise
In millions of euros |
|
4Q 2022 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2022 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
2,136 |
0.9 % |
4.0 % |
|
7,930 |
0.2 % |
2.2 % |
Fixed-only |
|
866 |
(6.7)% |
(3.8)% |
|
3,466 |
(6.7)% |
(4.6)% |
Voice |
|
253 |
(7.7)% |
(6.0)% |
|
1,018 |
(8.9)% |
(8.0)% |
Data |
|
613 |
(6.3)% |
(2.8)% |
|
2,448 |
(5.7)% |
(3.1)% |
IT & Integration services |
|
1,010 |
9.8 % |
14.2 % |
|
3,489 |
6.6 % |
9.2 % |
Mobile |
|
260 |
(3.2)% |
(3.2)% |
|
975 |
5.0 % |
5.0 % |
Mobile-only |
|
171 |
4.4 % |
4.4 % |
|
659 |
3.5 % |
3.6 % |
Wholesale |
|
11 |
3.6 % |
3.6 % |
|
41 |
(2.1)% |
(2.1)% |
Equipment sales |
|
78 |
(17.1)% |
(17.1)% |
|
275 |
9.7 % |
9.7 % |
EBITDAaL |
|
|
|
|
|
804 |
(18.8)% |
(17.1)% |
EBITDAaL / Revenues |
|
|
|
|
|
10.1 % |
(2.4 pt) |
(2.4 pt) |
Operating Income |
|
|
|
|
|
317 |
(35.7)% |
(33.0)% |
eCAPEX |
|
|
|
|
|
332 |
2.0 % |
4.3 % |
eCAPEX / Revenues |
|
|
|
|
|
4.2 % |
0.1 pt |
0.1 pt |
Slower decline in EBITDAaL in the second
half. Recovery plan for Orange Business Services
to be accelerated
Enterprise revenue grew
slightly both in the fourth quarter and year on year thanks to
growth in IT & Integration and mobile services, which offset
the decline in legacy activities. With full-year revenue of 977
million euros, Orange Cyberdefense almost reached its target of 1
billion euros a year ahead of schedule.
For 2022 as a whole, EBITDAaL
fell sharply as the decline in Voice and Data services gathered
pace, without being offset by growth drivers with lower margins.
The decline was less marked in the second half than in the first
(-12.5% in 2H, compared with -25.3% in 1H) in part due to the
employee shareholding program, which had a negative impact on
EBITDAaL in the second half of 2021. Excluding this base effect,
EBITDAaL would have fallen 17% in the second half of 2022.
The recovery plan for Orange Business Services
is a priority for the Group.
Totem7
In millions of euros |
|
4Q 2022 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2022 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
188 |
25.0 % |
- |
|
685 |
14.9 % |
- |
Wholesale |
|
188 |
25.0 % |
- |
|
685 |
14.9 % |
- |
Other revenues |
|
- |
- |
- |
|
- |
- |
- |
EBITDAaL |
|
|
|
|
|
371 |
5.4 % |
- |
EBITDAaL / Revenues |
|
|
|
|
|
54.2 % |
(4.9 pt) |
- |
Operating Income |
|
|
|
|
|
252 |
8.3 % |
- |
eCAPEX |
|
|
|
|
|
142 |
68.6 % |
- |
eCAPEX / Revenues |
|
|
|
|
|
20.8 % |
6.6 pt |
- |
Robust revenue growth
At the end of 2022, Totem had 19,500 sites in
France (a year-on-year increase of 400) and 7,600 sites in Spain (a
year-on-year decrease of 100 due to the decommissioning plan under
the network sharing agreement with Vodafone).
In 2022, revenue grew 15% and
EBITDAaL rose 5.4%, despite the installation costs
of the new entity.
After signing an agreement with Telefonica for
the roll-out of 5G in Spain and winning the tender for the network
roll-out on the 15 South line of the Grand Paris subway, Totem
confirmed its good commercial momentum in the fourth quarter by
signing an agreement with Iliad in France. External hosting revenue
thus increased by more than 10% in 2022, while the tenancy ratio
reached 1.37 tenants per site at the end of 2022, the first step
toward meeting the target of 1.5 by 2026.
International Carriers & Shared
Services
In millions of euros |
|
4Q 2022 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2022 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
390 |
2.7 % |
2.3 % |
|
1,540 |
1.7 % |
1.6 % |
Wholesale |
|
259 |
(2.3)% |
(1.9)% |
|
1,060 |
(0.1)% |
0.4 % |
Other revenues |
|
131 |
14.3 % |
11.9 % |
|
480 |
6.0 % |
4.4 % |
EBITDAaL |
|
|
|
|
|
(96) |
59.7 % |
59.7 % |
EBITDAaL / Revenues |
|
|
|
|
|
(6.2)% |
9.4 pt |
9.4 pt |
Operating Income |
|
|
|
|
|
(417) |
53.2 % |
na |
eCAPEX |
|
|
|
|
|
278 |
14.4 % |
14.4 % |
eCAPEX / Revenues |
|
|
|
|
|
18.1 % |
2.0 pt |
2.0 pt |
Revenues from International
Carriers and Shared Services rose 2.7% in the fourth quarter.
International wholesale services were stable for the 12-month
period, with the decline in voice services being offset by other
services and the recovery of roaming.
Over the year as a whole, the decline in
EBITDAaL was significantly reduced due to
increased revenues and reduced expenses principally related to the
optimization of real estate portfolio. In addition, the 2021 fiscal
year had been affected by the 2021 employee shareholding
program.
Mobile Financial Services
In millions of euros |
|
|
|
|
|
12M 2022 |
changecomparablebasis |
changehistoricalbasis |
Net Banking Income (NBI) |
|
|
|
|
|
115 |
6.0 % |
6.0 % |
Cost of bank credit risk |
|
|
|
|
|
(45) |
(1.7)% |
(1.7)% |
Operating Income |
|
|
|
|
|
(200) |
(10.0)% |
(10.0)% |
eCAPEX |
|
|
|
|
|
35 |
48.0 % |
48.0 % |
Net banking income (NBI) from
Mobile Financial Services increased 6% in 2022 to 115 million
euros. This was driven by Dolphin offers in Spain, the growth in
accounts and lending (including the new express loan) in France and
the launch of new offers (consumer credit and microcredit) in
Africa.
At the end of 2022, Mobile Financial Services
had 2 million customers in Europe and 1.1 million
customers in Africa.
EBITDAaL improved by 13 million euros year on
year while operating income fell 10%, mainly due to asset
impairment following the deterioration of the business plan in a
challenging economic climate.
Calendar of upcoming
events
27 April 2023 |
- Publication of 1st quarter 2023 results |
Contacts
press: Sylvain Brunosylvain.bruno@orange.com Tom
Wrighttom.wright@orange.com Caroline
Celliercaroline.cellier@orange.com |
financial communication: (analysts and investors)Patrice Lambert-de
Diesbachp.lambert@orange.com Aurélia
Rousselaurelia.roussel@orange.comLouise
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 31 March 2022
with the French Financial Markets Authority (AMF) and in the annual
report (Form 20-F) filed on 1st April 2022 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 |
|
4Q 2022 |
4Q 2021comparablebasis |
4Q 2021historicalbasis |
variationcomparablebasis |
changehistoricalbasis |
Revenues |
|
11,351 |
11,204 |
11,148 |
1.3 % |
1.8 % |
France |
|
4,691 |
4,687 |
4,658 |
0.1 % |
0.7 % |
Europe |
|
2,873 |
2,815 |
2,833 |
2.1 % |
1.4 % |
Africa & Middle-East |
|
1,756 |
1,661 |
1,687 |
5.7 % |
4.1 % |
Enterprise |
|
2,136 |
2,116 |
2,053 |
0.9 % |
4.0 % |
Totem |
|
188 |
150 |
- |
25.0 % |
- |
International Carriers & Shared Services |
|
390 |
379 |
381 |
2.7 % |
2.3 % |
Intra-Group eliminations |
|
(683) |
(605) |
(464) |
|
|
EBITDAaL (1) |
|
3,448 |
3,179 |
3,179 |
8.5 % |
8.5 % |
o/w Telecom activities |
|
3,480 |
3,224 |
3,225 |
7.9 % |
7.9 % |
As % of revenues |
|
30.7 % |
28.8 % |
28.9 % |
1.9 pt |
1.7 pt |
o/w Mobile Financial Services |
|
(32) |
(46) |
(46) |
29.1 % |
29.1 % |
eCAPEX |
|
2,227 |
2,045 |
2,106 |
8.9 % |
5.8 % |
o/w Telecom activities |
|
2,212 |
2,035 |
2,096 |
8.7 % |
5.5 % |
as % of revenues |
|
19.5 % |
18.2 % |
18.8 % |
1.3 pt |
0.7 pt |
o/w Mobile Financial Services |
|
16 |
10 |
10 |
60.4 % |
60.4 % |
EBITDAaL - eCAPEX |
|
1,221 |
1,134 |
1,073 |
7.6 % |
13.8 % |
(1) EBITDAaL presentation adjustments
are described in Appendix 2.
31 December data
In millions of euros |
|
12M 2022 |
12M 2021comparablebasis |
12M 2021historicalbasis |
variationcomparablebasis |
changehistoricalbasis |
Revenues |
|
43,471 |
43,195 |
42,522 |
0.6 % |
2.2 % |
France |
|
17,983 |
18,175 |
18,092 |
(1.1)% |
(0.6)% |
Europe |
|
10,962 |
10,898 |
10,579 |
0.6 % |
3.6 % |
Africa & Middle-East |
|
6,918 |
6,504 |
6,381 |
6.4 % |
8.4 % |
Enterprise |
|
7,930 |
7,917 |
7,757 |
0.2 % |
2.2 % |
Totem |
|
685 |
596 |
- |
14.9 % |
- |
International Carriers & Shared Services |
|
1,540 |
1,513 |
1,515 |
1.7 % |
1.6 % |
Intra-Group eliminations |
|
(2,547) |
(2,408) |
(1,802) |
|
|
EBITDAaL (1) |
|
12,963 |
12,645 |
12,566 |
2.5 % |
3.2 % |
o/w Telecom activities |
|
13,080 |
12,775 |
12,696 |
2.4 % |
3.0 % |
As % of revenues |
|
30.1 % |
29.6 % |
29.9 % |
0.5 pt |
0.2 pt |
France |
|
6,645 |
6,620 |
6,867 |
0.4 % |
(3.2)% |
Europe |
|
2,772 |
2,728 |
2,830 |
1.6 % |
(2.0)% |
Africa & Middle-East |
|
2,584 |
2,322 |
2,265 |
11.3 % |
14.0 % |
Enterprise |
|
804 |
990 |
970 |
(18.8)% |
(17.1)% |
Totem |
|
371 |
352 |
- |
5.4 % |
- |
International Carriers & Shared Services |
|
(96) |
(237) |
(237) |
59.7 % |
59.7 % |
o/w Mobile Financial Services |
|
(118) |
(131) |
(131) |
10.0 % |
10.0 % |
Operating Income |
|
4,801 |
122 |
2,521 |
ns |
90.4 % |
o/w Telecom activities |
|
5,000 |
303 |
2,702 |
ns |
85.1 % |
o/w Mobile Financial Services |
|
(200) |
(182) |
(182) |
(10.0)% |
(10.0)% |
Consolidated net income |
|
2,617 |
|
778 |
- |
236.6 % |
Net income attributable to equity owners of the Group |
|
2,146 |
|
233 |
|
ns |
eCAPEX |
|
7,371 |
7,426 |
7,660 |
(0.7)% |
(3.8)% |
o/w Telecom activities |
|
7,335 |
7,402 |
7,636 |
(0.9)% |
(3.9)% |
as % of revenues |
|
16.9 % |
17.1 % |
18.0 % |
(0.3 pt) |
(1.1 pt) |
o/w Mobile Financial Services |
|
35 |
24 |
24 |
48.0 % |
48.0 % |
EBITDAaL - eCAPEX |
|
5,593 |
5,219 |
4,906 |
7.2 % |
14.0 % |
Organic cash-flow (telecom activities) |
|
3,058 |
|
2,401 |
|
27.4 % |
(1) EBITDAaL presentation adjustments
are described in Appendix 2.
In millions of euros |
|
31 December
2022 |
At 31 Dec.2021 |
Net financial debt (1) |
|
25,298 |
24,269 |
Ratio of financial debt / EBITDAaL from telecom activities
(2) |
|
1.93 |
1.91 |
Appendix 2: adjusted data to
income statement items
Quarterly data
|
|
4Q 2022 |
|
4Q 2021historical basis |
In millions of euros |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
Revenues |
|
11,351 |
- |
11,351 |
|
11,148 |
- |
11,148 |
External purchases |
|
(5,100) |
(9) |
(5,109) |
|
(4,919) |
(20) |
(4,939) |
Other operating income |
|
197 |
1 |
197 |
|
243 |
53 |
296 |
Other operating expense |
|
(56) |
(27) |
(83) |
|
(217) |
(92) |
(309) |
Labor expenses |
|
(2,179) |
(316) |
(2,496) |
|
(2,270) |
(1,255) |
(3,525) |
Operating taxes and levies |
|
(315) |
(2) |
(317) |
|
(363) |
(5) |
(368) |
Gains (losses) on disposal of fixed assets, investments and
activities |
|
na |
98 |
98 |
|
na |
2,133 |
2,133 |
Restructuring costs |
|
na |
(39) |
(39) |
|
na |
(47) |
(47) |
Depreciation and amortization of financed assets |
|
(32) |
- |
(32) |
|
(21) |
- |
(21) |
Depreciation and amortization of right-of-use assets |
|
(370) |
- |
(370) |
|
(388) |
- |
(388) |
Impairment of right-of-use assets |
|
- |
(63) |
(63) |
|
0 |
(31) |
(31) |
Interests expenses on liabilities related to financed assets |
|
(2) |
2 |
na |
|
(0) |
0 |
na |
Interests expenses on lease liabilities |
|
(44) |
44 |
na |
|
(34) |
34 |
na |
EBITDAaL |
|
3,448 |
(312) |
na |
|
3,179 |
771 |
na |
Significant litigation |
|
(5) |
5 |
na |
|
(45) |
45 |
na |
Specific labour expenses |
|
(315) |
315 |
na |
|
(1,256) |
1,256 |
na |
Fixed assets, investments and business portfolio review |
|
98 |
(98) |
na |
|
2,133 |
(2,133) |
na |
Restructuring program costs |
|
(103) |
103 |
na |
|
(78) |
78 |
na |
Acquisition and integration costs |
|
(34) |
34 |
na |
|
(18) |
18 |
na |
Interests expenses on liabilities related to financed assets |
|
na |
(2) |
(2) |
|
na |
(0) |
(0) |
Interests expenses on lease liabilities |
|
na |
(44) |
(44) |
|
na |
(34) |
(34) |
31 December data
|
|
12M 2022 |
|
12M 2021historical basis |
In millions of euros |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
Revenues |
|
43,471 |
- |
43,471 |
|
42,522 |
- |
42,522 |
External purchases |
|
(18,707) |
(24) |
(18,732) |
|
(17,950) |
(23) |
(17,973) |
Other operating income |
|
745 |
2 |
747 |
|
730 |
53 |
783 |
Other operating expense |
|
(367) |
(47) |
(413) |
|
(535) |
(165) |
(700) |
Labor expenses |
|
(8,537) |
(383) |
(8,920) |
|
(8,626) |
(1,291) |
(9,917) |
Operating taxes and levies |
|
(1,879) |
(3) |
(1,882) |
|
(1,890) |
(36) |
(1,926) |
Gains (losses) on disposal of fixed assets, investments and
activities |
|
na |
233 |
233 |
|
na |
2,507 |
2,507 |
Restructuring costs |
|
na |
(125) |
(125) |
|
na |
(331) |
(331) |
Depreciation and amortization of financed assets |
|
(107) |
- |
(107) |
|
(84) |
- |
(84) |
Depreciation and amortization of right-of-use assets |
|
(1,507) |
- |
(1,507) |
|
(1,481) |
- |
(1,481) |
Impairment of right-of-use assets |
|
(1) |
(52) |
(54) |
|
0 |
(91) |
(91) |
Interests expenses on liabilities related to financed assets |
|
(3) |
3 |
na |
|
(1) |
1 |
na |
Interests expenses on lease liabilities |
|
(145) |
145 |
na |
|
(120) |
120 |
na |
EBITDAaL |
|
12,963 |
(251) |
na |
|
12,566 |
744 |
na |
Significant litigation |
|
(9) |
9 |
na |
|
(134) |
134 |
na |
Specific labour expenses |
|
(372) |
372 |
na |
|
(1,276) |
1,276 |
na |
Fixed assets, investments and business portfolio review |
|
233 |
(233) |
na |
|
2,507 |
(2,507) |
na |
Restructuring program costs |
|
(177) |
177 |
na |
|
(422) |
422 |
na |
Acquisition and integration costs |
|
(74) |
74 |
na |
|
(51) |
51 |
na |
Interests expenses on liabilities related to financed assets |
|
na |
(3) |
(3) |
|
na |
(1) |
(1) |
Interests expenses on lease liabilities |
|
na |
(145) |
(145) |
|
na |
(120) |
(120) |
Appendix 3: economic CAPEX to
investments in property, plant and intangible
investment
In millions of euros |
|
4Q 2022 |
4Q 2021historicalbasis |
|
12M 2022 |
12M 2021historicalbasis |
eCAPEX |
|
2,227 |
2,106 |
|
7,371 |
7,660 |
Elimination of proceeds from sales of property, plant and equipment
and intangible assets |
|
155 |
64 |
|
347 |
163 |
Telecommunication licenses |
|
589 |
213 |
|
1,060 |
926 |
Financed assets |
|
94 |
16 |
|
229 |
40 |
Investments in property, plant and equipment and intangible
assets |
|
3,065 |
2,399 |
|
9,007 |
8,789 |
Appendix 4: key performance
indicators
In thousand, at the end of the period |
|
31 December
2022 |
|
31 December 2021 |
Number of convergent customers |
|
11,628 |
|
11,533 |
Number of mobile accesses (excluding MVNOs)
(1) |
|
241,855 |
|
228,448 |
o/w |
Convergent customers mobile accesses |
|
21,325 |
|
20,937 |
|
Mobile only accesses |
|
220,530 |
|
207,511 |
o/w |
Contract customers mobile accesses |
|
94,015 |
|
86,356 |
|
Prepaid customers mobile accesses |
|
147,840 |
|
142,092 |
Number of fixed accesses (2) |
|
45,358 |
|
46,559 |
|
Fixed Retail accesses |
|
30,904 |
|
31,313 |
|
|
Fixed Broadband accesses |
|
24,332 |
|
23,685 |
|
|
o/w |
Very high‑speed broadband fixed accesses |
|
14,217 |
|
12,302 |
|
|
|
Convergent customers fixed accesses |
|
11,628 |
|
11,533 |
|
|
|
Fixed accesses only |
|
12,704 |
|
12,152 |
|
|
Fixed Narrowband accesses |
|
6,572 |
|
7,628 |
|
Fixed Wholesale accesses |
|
14,453 |
|
15,246 |
Group total accesses (1+2) |
|
287,212 |
|
275,006 |
2021 data is presented on a comparable
basis.
Key performance indicators (KPIs) by country are
presented in the “Orange Investors Databook Q2 2022,” 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 labour 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 effect
of 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), and (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.
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, and (iii) 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, the changes presented in
this press release are on a comparable basis (i.e. excluding the
effects of changes in the scope of consolidation and foreign
exchange rates)2 Data on a historical basis3 These targets are
based on comparable data and do not take into account mergers and
acquisitions that have not yet been finalized.4 Services invoiced
to customers (B2C + B2B). See definition in the attached glossary5
On the defined scope of 13.8 billion euros, corresponding to
the Group’s indirect costs in 2019 excluding (i) Africa &
Middle East and Mobile Financial Services and (ii) labor expenses,
other network expenses and IT expenses for Enterprise IT &
Integration Services
6 Revenue from the Switched Telephone Network
7 Totem is the European company within the Orange
group that owns and manages the passive mobile infrastructure
portfolio of telecommunication towers (initially in France and
Spain). It began operating in late 2021. Since 1 January 2022,
Totem has been presented as a new business segment.
- PR_Orange_FY2022_EN_160223
Orange (EU:ORA)
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