Press
release
Paris, 25 October 2018
Financial results at 30 September 2018
Continued solid
growth in adjusted EBITDA
|
|
|
Q3 2018 |
Comparable basis |
Historical basis |
|
9M 2018 |
Comparable basis |
Historical basis |
In millions
of euros |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
10 307 |
0.6 % |
1.0 % |
|
30 570 |
1.3 % |
0.9 % |
Adjusted EBITDA |
3 687 |
3.0 % |
3.0 % |
|
9 671 |
3.2 % |
2.8 % |
CAPEX (excluding licences) |
1 772 |
10.9 % |
10.9 % |
|
5 141 |
6.0 % |
5.5 % |
Operating Cash-Flow |
1 915 |
(3.5)% |
(3.5)% |
|
4 530 |
0.1 % |
(0.2)% |
The first nine
months of the year confirm the acceleration in revenues and
adjusted EBITDA growth compared to 2017. Adjusted EBITDA growth
remained solid (+3%) in the third quarter[1].
-
The 1.3% growth in revenues in the first nine
months of 2018 exceeded that of the full year 2017 (+1.2%). In the
third quarter, revenue growth proved to be resilient, up 0.6% year
on year, against a backdrop of increasingly intense competition in
our key markets, particularly in France and Spain.
-
The 3.2% growth in adjusted EBITDA in the
9-month period confirmed the objective of stronger growth in 2018
compared to that achieved in 2017. The adjusted EBITDA growth of
3.0% in the third quarter is in line with the trend of the previous
quarters, with continued efforts to control costs. The adjusted
EBITDA margin for the telecom activities improved compared to 2017,
up 0.7 points in the first nine months of the year and up 1.0 point
in the third quarter.
-
CAPEX for the third quarter was 5.141 billion
euros, up 6.0% on a comparable basis, in line with the objective of
7.4 billion euros for the full year. These investments positioned
Orange yet again as the number one provider in France in terms of
the quality of its mobile network in the 2018 ARCEP survey.
Third quarter results also
demonstrate a strong commercial performance, particularly:
-
In France, where the success of the new offers
contributed to the growth of our fixed broadband customer base,
including a record for a third quarter in fibre.
-
In Spain, where the net change in the fixed
broadband customer base returned to growth, thanks to fibre and the
success of our content aggregation TV strategy including
football.
-
In Europe, with an acceleration of growth in
mobile contract and fixed broadband customer base, which was driven
by the success of the Love convergent offers.
-
In Africa & Middle East where we continued
to accelerate 4G and reached 15 million of 4G customers at the end
of the third quarter, a milestone for the company, representing a
57% increase year on year.
2018 and mid-term outlook
Based on these results, Orange
re-affirms its objectives for 2018:
-
Growth in adjusted EBITDA greater than that
achieved in 2017 on a comparable basis;
-
Increased CAPEX, peaking at 7.4 billion euros in
2018;
-
Growth in Operating Cash Flow greater than in
2017 on a comparable basis;
-
The ratio of net debt to adjusted EBITDA for the
telecom activities to be maintained at about 2x in the medium term,
to preserve Orange's financial strength and investment
capacity.
-
Payment of a dividend of 0.70 euros per share
for the full year 2018 (if approved at the 2019 Annual General
Meeting). The dividend increase of 0.05 euros will be included in
the interim dividend (0.30 euros per share), which is expected to
be paid on 6 December 2018
For 2019 and 2020, growth in adjusted
EBITDA, a reduction in CAPEX and growth in Operating Cash Flow.
Commenting on the publication of the
2018 third quarter results, Stéphane Richard, Chairman and CEO of
the Orange Group, said:
"The Group has
maintained its strong momentum during this third quarter, with
increased revenues of +0.6% despite particularly intense
competition in our key markets, while maintaining solid EBITDA
growth of +3.0%, an indication of the appropriateness of our
strategy.
In France, in spite
of the competitive context, we increased our mobile contract base
by 82,000 customers and our fibre base by 157,000 customers. This
commercial performance was underpinned by our investments in our
networks (Orange was recently ranked first by ARCEP for the quality
of its mobile network for the 8th successive year) and by a
targeted marketing strategy, combining improved pricing focusing on
value and the launch of a new broadband double-play offer by Sosh.
Revenue growth and successful cost management have enabled Orange
France to confirm its continued EBITDA improvement.
A similar strategy
has supported Orange Spain's broadband sales and TV subscriptions
performance thanks to investments in fibre and has also enabled it
to respond in a targeted way to aggressive moves by our competitors
in the mobile business.
In Europe, where
growth reached +1.6% thanks to our convergence strategy, I'd like
in particular to highlight the important progress made by Orange
Poland in the development of its "Orange One" strategy that led to
a return to growth during the quarter.
Our African and
Middle East activities are maintaining a good level of growth
notwithstanding specific operational challenges in the Côte
d'Ivoire. I'd like to underline in particular the strong
performance in Burkina Faso and the Democratic Republic of the
Congo, which also returned to growth this quarter.
Finally, Orange
Business Services continues its progress with sustained momentum in
the areas of cybersecurity and cloud services."
The financial data in this press
release are unaudited.
In order to make
2017 data comparable with that of 2018, the 2017 results are
adjusted to reflect the changes in the scope of consolidation and
foreign exchange fluctuations during the period. At the end of
September, their impact was respectively, +71 and -194 million
euros in revenues, -2 and -37 million euros in adjusted EBITDA, +1
and -26 million euros in CAPEX and -3 and -10 million euros in
operating cash flow. The changes in the scope of consolidation
primarily resulted from the consolidation of Business &
Decision, and foreign exchange fluctuations resulted mainly from
the variation in the value of the U.S. dollar, the Egyptian pound,
the Jordanian dinar and the Guinean franc against the euro.
More detailed information is
available on the Orange website, in the "Investors / Results and
Presentations" section.
www.orange.com
Key figures
|
|
|
|
|
|
|
|
|
|
|
2018 |
2017 |
2017 |
|
change |
|
change |
|
|
|
|
comparable |
historical |
|
comparable |
|
historical |
In millions
of euros |
|
basis |
basis |
|
basis |
|
basis |
|
|
|
|
|
|
|
|
|
Revenues |
30,570 |
30,174 |
30,297 |
|
1.3 % |
|
0.9 % |
Of which: |
|
|
|
|
|
|
|
|
France |
13,524 |
13,364 |
13,362 |
|
1.2 % |
|
1.2
% |
|
Spain |
3,974 |
3,890 |
3,890 |
|
2.2 % |
|
2.2
% |
|
Europe |
4,185 |
4,132 |
4,108 |
|
1.3 % |
|
1.9
% |
|
Africa & Middle East |
3,834 |
3,651 |
3,756 |
|
5.0 % |
|
2.1
% |
|
Enterprise |
5,314 |
5,354 |
5,391 |
|
(0.7)% |
|
(1.4)% |
|
International Carriers & Shared
Services |
1,132 |
1,220 |
1,234 |
|
(7.2)% |
|
(8.2)% |
|
Intra-Group eliminations |
(1,395) |
(1,437) |
(1,444) |
|
- |
|
- |
Adjusted EBITDA* |
9,671 |
9,372 |
9,411 |
|
3.2 % |
|
2.8 % |
of which telecom activities |
9,761 |
9,416 |
9,455 |
|
3.7 % |
|
3.2
% |
|
As % of revenues |
31.9 % |
31.2 % |
31.2 % |
|
0.7 pt |
|
0.7 pt |
of which
Orange Bank |
(92) |
(44) |
(44) |
|
110.1
% |
|
110.1
% |
CAPEX (excluding licenses) |
5,141 |
4,848 |
4,873 |
|
6.0 % |
|
5.5 % |
of which telecom activities |
5,111 |
4,811 |
4,836 |
|
6.2 % |
|
5.7
% |
|
As % of revenues |
16.7 % |
15.9 % |
16.0 % |
|
0.8 pt |
|
0.8 pt |
of which
Orange Bank |
30 |
37 |
37 |
|
(17.9)% |
|
(17.9)% |
Operating Cash-Flow |
4,530 |
4,525 |
4,538 |
|
0.1 % |
|
(0.2)% |
|
|
|
|
|
|
|
|
|
|
|
Q3 2018 |
Q3 2017 |
Q3 2017 |
|
change |
|
change |
|
|
|
|
comparable |
historical |
|
comparable |
|
historical |
In millions
of euros |
|
basis |
basis |
|
basis |
|
basis |
|
|
|
|
|
|
|
|
|
Revenues |
10,307 |
10,250 |
10,209 |
|
0.6 % |
|
1.0 % |
Of which: |
|
|
|
|
|
|
|
|
France |
4,572 |
4,533 |
4,532 |
|
0.9 % |
|
0.9
% |
|
Spain |
1,340 |
1,333 |
1,333 |
|
0.5 % |
|
0.5
% |
|
Europe |
1,411 |
1,389 |
1,392 |
|
1.6 % |
|
1.3
% |
|
Africa & Middle East |
1,310 |
1,263 |
1,264 |
|
3.7 % |
|
3.6
% |
|
Enterprise |
1,785 |
1,825 |
1,777 |
|
(2.2)% |
|
0.4
% |
|
International Carriers & Shared
Services |
374 |
412 |
415 |
|
(9.2)% |
|
(10.0)% |
|
Intra-Group eliminations |
(483) |
(504) |
(506) |
|
- |
|
- |
Adjusted EBITDA* |
3,687 |
3,581 |
3,581 |
|
3.0 % |
|
3.0 % |
of which telecom activities |
3,718 |
3,597 |
3,597 |
|
3.3 % |
|
3.3
% |
|
As % of revenues |
36.1 % |
35.1 % |
35.2 % |
|
1.0 pt |
|
0.8 pt |
of which
Orange Bank |
(31) |
(17) |
(17) |
|
89.0 % |
|
89.0 % |
CAPEX (excluding licenses) |
1,772 |
1,597 |
1,597 |
|
10.9 % |
|
10.9 % |
of which telecom activities |
1,762 |
1,586 |
1,586 |
|
11.1 % |
|
11.1
% |
|
As % of revenues |
17.1 % |
15.5 % |
15.5 % |
|
1.6 pt |
|
1.6 pt |
of which
Orange Bank |
10 |
12 |
12 |
|
(13.7)% |
|
(13.7)% |
Operating Cash-Flow |
1,915 |
1,983 |
1,983 |
|
(3.5)% |
|
(3.5)% |
* EBITDA adjustments are described in
Appendix 2.
Comments on key Group
figures[2]
Revenues
Orange Group revenues were 10.307
billion euros in the third quarter of 2018, an increase of 0.6%
(+58 million euros) on a comparable basis. In the first nine
months, revenues increased 1.3% (+0.9% excluding the positive
impact from ePresse and audiobook offers). This slowdown can be
explained by the increasingly competitive landscape and by a
decline in wholesale and equipment sales revenues. At Group level,
the performance of the principal services was as follows:
Revenues from
Convergent offers, sold in all European countries, continued to
grow rising 9.5% in the third quarter and 11.4% in the first nine
months of 2018.
Revenues from Mobile
Only services rose 1.3% in the third quarter and 1.5% in the
first nine months of 2018, driven by the steady growth of prepaid
in Africa & Middle-East.
Revenues from Fixed
Only services decreased 3.1% in the third quarter and 3.3% in
the 9-month period, due to the shift towards convergent offers and
the slowdown in fixed narrowband services.
Revenues from IT and
integration services were up 7.9% in the third quarter and 6.9%
in the first nine months of 2018, driven by revenues from the Cloud
and Orange Cyberdefense, which rose 10% and 16% respectively.
Revenues
from Wholesale were down 4.1% in the third
quarter (-3.1% in the 9-month period), affected by the decrease in
fibre co-financing in France compared to the previous quarter and
by the decrease in international carrier services.
Revenues
from equipment sales decreased 2.1% in the
third quarter and were up 2.9% in the 9-month period.
Customer base growth
There were 10.778 million customers for convergent offers across the Group at 30
September 2018, up 7.2% year on year on a comparable basis,
including 6.119 million customers in France, 3.123 million in Spain
and 1.536 million in Europe.
Mobile customers reached 200.922 million as of
30 September 2018, up 0.9% year on year, driven by a return to
positive sales in the third quarter, with 1.917 million new
customers. The growth in mobile contract customers (+2.2% year on
year) exceeded that in prepaid customers (+0.1%).
There were 19.866 million fixed broadband
customers across the Group at 30 September 2018, an increase of
3.6% year on year. Very high-speed fixed broadband grew 36% year on
year to reach 5.890 million customers.
TV services had 9.374
million customers at 30 September 2018, a 5.7% year-on-year
increase.
Adjusted EBITDA
The Group's adjusted
EBITDA was 3.687 billion euros in the third quarter of 2018, an
increase of 3.0% on a comparable basis, in line with previous
quarters. In the first nine months of 2018, adjusted EBITDA grew
3.2%, up 1.9% excluding the positive impact from ePresse and
audiobook offers. Compared to the second quarter, the decline in
revenue growth, mainly from low-margin activities such as equipment
sales and IT, was offset by lower commercial expenses.
Adjusted EBITDA from the telecom
activities was 3.718 billion euros in the third quarter, up
3.3% on a comparable basis and the margin was 36.1% (up 1.0 point
year on year). In the first nine months, adjusted EBITDA from the
telecom activities was up 3.7%. This growth was generated primarily
by the remarkable performance of France, Spain and Africa &
Middle East.
CAPEX
Group CAPEX totalled 5.141 billion euros in the first nine
months of the year, up 6% on a comparable basis. This increase is
due to the different timing in CAPEX this year, which led to
comparatively larger expenses in the third quarter, in line with
the objective of 7.4 billion euros in CAPEX for the full year 2018.
CAPEX for the telecom activities, as a percentage of revenues, was
16.7% (up 0.8 points over one year).
The Group accelerated its fibre deployment: as a result, at 30 September 2018,
30.8 million households had connectivity to very high-speed
broadband[3] (an
increase of 6.2 million or 25.1% year on year), including 13.3
million in Spain, 10.9 million in France, 3.2 million in Poland and
2.3 million in Romania (following the network sharing agreement
with Telekom Romania).
Investment in 4G et
4G+ mobile services was sustained with an acceleration in the
deployment of 4G sites in France, Spain and Africa & Middle
East (notably Mali, Morocco, Senegal and Côte d'Ivoire). In France,
the Group's capital expenditure efforts in mobile networks are
clearly reflected in the results of the 2018 ARCEP annual survey,
which ranked Orange yet again as the number one provider in France
for the quality of its mobile network.
Changes in asset
portfolio
On 14 August 2018, Orange finalised the
acquisition of 100% of the capital of Basefarm Holding AS, a major
player in cloud infrastructure and critical application services in
Europe. The acquisition strengthens the position of Orange Business
Services, which is already the leader in the market for cloud
computing services in France and a significant player in
Europe.
Review by operating
segment
France
|
|
|
|
|
|
|
|
|
Q3 2018 |
change |
change |
|
9M 2018 |
change |
change |
|
|
comparable |
historical |
|
|
comparable |
historical |
In millions of euros |
|
basis |
basis |
|
|
basis |
basis |
|
|
|
|
|
|
|
|
Revenues |
4,572 |
0.9 % |
0.9 % |
|
13,524 |
1.2 % |
1.2 % |
Retail
services |
2,755 |
2.1
% |
2.1
% |
|
8,238 |
2.4
% |
2.4
% |
Convergence |
1,126 |
10.7
% |
10.7
% |
|
3,322 |
12.3
% |
12.3
% |
Mobile Only |
587 |
(2.5)% |
(2.5)% |
|
1,770 |
(2.1)% |
(2.1)% |
Fixed Only |
1,041 |
(3.4)% |
(3.4)% |
|
3,146 |
(4.0)% |
(4.0)% |
Fixed Only broadband |
644 |
3.1
% |
3.1
% |
|
1,925 |
1.9
% |
1.9
% |
Fixed Only narrowband |
397 |
(12.2)% |
(12.2)% |
|
1,221 |
(12.0)% |
(12.0)% |
Wholesale |
1,355 |
(2.2)% |
(2.1)% |
|
3,970 |
(2.1)% |
(2.1)% |
Equipment
sales |
349 |
2.6
% |
2.6
% |
|
959 |
4.3
% |
4.3
% |
Other
revenues |
114 |
2.5 % |
2.5 % |
|
355 |
2.8 % |
2.8 % |
In the third quarter
of 2018, revenues in France were up for the sixth quarter in a row.
Thanks to the further deployment of our value strategy, Fixed Only,
Mobile Only and convergent ARPOs have all improved.
Revenues, rose
0.9% year on year on a comparable basis in the third quarter of
2018, following an increase of 0.6% in the second quarter. As in
the three previous quarters, this third quarter benefited from the
favourable impact of the inclusion ePresse offers and audiobooks.
Excluding this effect, revenues were quasi stable year on year
(-0.1%).
In an intense promotional market
environment in the third quarter, Orange's customer base continued to grow, driven by strong net
sales: up 2.6% year on year for mobile contract customers (19.123 million customers at
30 September 2018) and up 2.2% year on year for fixed broadband customers (11.389 million customers).
Fibre continued to increase steadily (+31.1%), achieving the best
ever third quarter results for fibre.
Revenues from
convergence rose 10.7%, convergent ARPO was up 4% in the third
quarter, following an increase of 3.2% in the second quarter. The
convergent customer base continued to grow: convergent fixed
broadband customers increased 4.6% year on year (6.119 million
customers at 30 September 2018), while the number of SIM cards for
convergent offers increased 7.4% year on year (9.620 million
customers).
Mobile Only
revenues decreased of 2.5% year on year. Mobile Only ARPO was
up 2.7% thanks to a favourable shift in the mix of mobile
offers.
Broadband Fixed
Only revenues were up 3.1% in the third
quarter of 2018, after rising 0.7% in the second quarter. Broadband
Fixed Only ARPO rose 3% in the third quarter after a 2.6% increase
in the second quarter. Fixed Only narrowband revenues[4] continued
their downward trend, declining 12.2% in the third quarter of
2018.
Wholesale
revenues were down 2.2% in the third quarter of 2018, after
declining 1.3% in the second quarter. Unbundling revenues continued
to decline as a result of the deployment of fibre and continue to
be negatively impacted in the 9-month period by the decrease of the
regulated unbundling tariffs as set on 1st January
2018.
Spain
|
|
|
|
|
|
|
|
|
Q3 2018 |
change |
change |
|
9M 2018 |
change |
change |
|
|
comparable |
historical |
|
|
comparable |
historical |
In millions of euros |
|
basis |
basis |
|
|
basis |
basis |
|
|
|
|
|
|
|
|
Revenues |
1,340 |
0.5 % |
0.5 % |
|
3,974 |
2.2 % |
2.2 % |
Retail
services |
973 |
(0.2)% |
(0.2)% |
|
2,893 |
1.7
% |
1.7
% |
Convergence |
539 |
0.8
% |
0.8
% |
|
1,603 |
3.6
% |
3.6
% |
Mobile Only |
309 |
(1.9)% |
(1.9)% |
|
918 |
(0.8)% |
(0.8)% |
Fixed Only |
125 |
(0.9)% |
(0.9)% |
|
370 |
0.2
% |
0.2
% |
Wholesale |
211 |
6.4
% |
6.4
% |
|
582 |
3.8
% |
3.8
% |
Equipment
sales |
155 |
(2.1)% |
(2.1)% |
|
499 |
3.0 % |
3.0 % |
Orange Spain's fixed
broadband customer base returned to growth driven by strong
momentum in fibre and TV offers including football, which attract
high-revenue customers. The strong commercial performance in a
highly competitive environment confirms the success of strategy in
place.
Revenues rose
0.5% in the third quarter of 2018, after growing 1.8% in the second
quarter. This slow growth is due to decreasing prices for mobile
termination (+1.4% excluding this impact), easing equipment sales
(down 2.1% in the third quarter after a decline of 0.4% in the
second quarter) and a slowdown in retail services (down 0.2%).
Wholesale revenues showed a significant increase.
Customer base
growth was positive despite strong competition in the entry-level
segment for mobile and fixed broadband. The mobile
contract customer base, excluding machine-to-machine, grew 7%
year on year (11.5 million customers). The fixed
broadband customer base continues to increase, with 13,000
additional net sales (4.14 million customers at 30 September 2018)
driven by the success of fibre: 158,000 net sales in the third
quarter and 2.721 million customers (up 30.6% year on year). Fibre
now represents 65.8% of the fixed broadband customer base, up 16
points year on year. The TV customer base
increased, with 46,000 net sales in the third quarter, totalling
685,000 customers, representing 17% of the fixed broadband customer
base, up 2 points year on year. This performance reflects the
success of both Orange Spain's open and premium content aggregation
strategy. The residential convergent customer base was up 1.2% year on year (3.123 million
customers).
Convergence
revenues rose 0.8% in the third quarter of 2018, after
increasing 3.1% in the second quarter. Convergent ARPO decreased
slightly in the third quarter (-0.3%) against a backdrop of intense
competition. Convergent customers represented 85.1% of the consumer
fixed broadband customer base at 31 March 2018, up 2.3 points year
on year.
Mobile Only
revenues were down 1.9% in the third quarter,
after rising 2.6% in the second quarter, notably with a customer
mix still marked by a weaker decline in the number of contract
customers compared to prepaid. Mobile Only ARPO remained stable in
the third quarter at 12.6 euros.
Fixed Only
revenues were down 0.9% in the third quarter of 2018, after
rising 0.6% in the second quarter. Broadband Only ARPO was up 1.7%
in the third quarter, after rising 3.9% in the second quarter.
Wholesale
increased 6.4% in the third quarter of 2018, after decreasing 0.6%
in the second quarter of 2018, driven by good momentum in services
to international carriers.
Europe
|
|
|
|
|
|
|
|
|
Q3 2018 |
change |
change |
|
9M 2018 |
change |
change |
|
|
comparable |
historical |
|
|
comparable |
historical |
In millions of euros |
|
basis |
basis |
|
|
basis |
basis |
|
|
|
|
|
|
|
|
Revenues |
1,411 |
1.6 % |
1.3 % |
|
4,185 |
1.3 % |
1.9 % |
Retail
services |
886 |
2.6
% |
2.2
% |
|
2,615 |
1.9
% |
2.1
% |
Convergence |
122 |
52.9
% |
51.9
% |
|
335 |
56.7
% |
57.2
% |
Mobile Only |
559 |
(1.1)% |
(1.4)% |
|
1,651 |
(2.5)% |
(2.4)% |
Fixed Only |
170 |
(8.4)% |
(9.2)% |
|
527 |
(8.3)% |
(7.9)% |
IT
& Integration services |
35 |
8.8
% |
8.0
% |
|
102 |
21.5
% |
21.9
% |
Wholesale |
285 |
(2.1)% |
(2.4)% |
|
859 |
1.3
% |
1.5
% |
Equipment
sales |
207 |
5.6
% |
6.3
% |
|
605 |
3.3
% |
4.4
% |
Other
revenues |
32 |
(14.9)% |
(15.4)% |
|
106 |
(19.7)% |
(12.5)% |
Revenues in
Europe[5] grew driven
by convergence, which is still growing quickly. Revenue growth in
Poland retuned to growth.
Revenues in the
Europe segment (which includes Poland, Belgium, Romania,
Luxembourg, Slovakia and Moldavia), grew 1.6% in the third quarter
of 2018 on a comparable basis, after rising 0.3% in the second
quarter. Retail services growth also improved, reaching 2.6% growth
in the third quarter, after rising 2.0% in the second quarter.
Equipment sales grew 5.6%, after a slight decrease of 0.4% in the
second quarter.
The mobile contract
customer base (18.873 million, excluding machine-to-machine)
grew 1.1% year on year in the third quarter after rising 1.2% in
the second quarter, with an overall improvement across all
countries. The fixed broadband customer base
(3.173 million) grew 11.8% in the third quarter, after rising 12.9%
in the second quarter. Very high-speed fixed broadband reached
698,000 customers at 30 September 2018.
Convergence
revenues continued to grow quickly, up 52.9% in the third quarter,
after increasing 57.8% in the second quarter. The convergent
customer base (1.536 million at 30 September 2018) was up 38.0%
year on year in the third quarter, mainly in Poland, Romania and
Belgium.
Mobile Only
revenues declined 1.1% in the third quarter of 2018, after
decreasing 3.6% in the second quarter, mainly due to the shift
towards convergent offers.
Fixed Only revenues, generated mainly by Poland, fell 8.4% in
the third quarter of 2018, after a decline of 6.5% in the second
quarter.
Similarly, the growth in IT and integration services in the third quarter (up
8.8%, after increasing 33.8% in the second quarter) was mainly
driven by Poland.
Wholesale was
down 2.1% in the third quarter of 2018, after rising 2.3% in the
second quarter, due to a smaller contribution from mobile services
to carriers.
Africa & Middle East
|
|
|
|
|
|
|
|
|
Q3 2018 |
change |
change |
|
9M 2018 |
change |
change |
|
|
comparable |
historical |
|
|
comparable |
historical |
In millions of euros |
|
basis |
basis |
|
|
basis |
basis |
|
|
|
|
|
|
|
|
Revenues |
1,310 |
3.7 % |
3.6 % |
|
3,834 |
5.0 % |
2.1 % |
Retail
services |
1,079 |
6.7
% |
6.6
% |
|
3,148 |
7.6
% |
4.7
% |
Mobile Only |
964 |
6.5
% |
6.0
% |
|
2,821 |
8.1
% |
4.9
% |
Fixed Only |
113 |
7.3
% |
10.7
% |
|
318 |
2.5
% |
1.5
% |
IT
& Integration services |
2 |
82.6
% |
98.9
% |
|
9 |
85.9
% |
114.2
% |
Wholesale |
204 |
(11.7)% |
(11.6)% |
|
607 |
(8.3)% |
(10.9)% |
Equipment
sales |
18 |
16.8
% |
11.9
% |
|
58 |
35.2
% |
29.8
% |
Other
revenues |
9 |
62.3 % |
68.1 % |
|
22 |
(2.5)% |
(4.7)% |
Africa & Middle
East continued its growth momentum with increased revenues and a
steady development of the mobile customer base.
Africa & Middle East revenues were up 3.7% on a comparable basis in the
third quarter of 2018, after rising 5.2% in the second quarter.
Retail services revenues remained strong, up 6.7% in the third
quarter, after rising 7.7% in the second quarter, driven by Orange
Money, up 34% year on year in the third quarter, and data services.
Five countries posted double-digit growth, including Burkina Faso
(+14.6%), Egypt (+11.0%) and the Democratic Republic of Congo
(+10.7%).
The mobile customer
base in Africa & Middle East was stable over one year
(118.25 million at 30 September 2018, despite the impact of change
in regulation. 4G customers grew 57% year on year to reach the 15
million customers milestone in the third quarter 2018.
Mobile Only services
revenues grew 6.5% in the third quarter after rising 8.5% in
the second quarter, driven by the increase in data services and a
continuous development of voice.
Fixed only services
revenues grew 7.3% year on year in the third quarter of 2018,
after increasing 1.1% in the second quarter. The number of fixed
broadband customers increased 18.5% in the third quarter (917,000
at 30 September 2018).
Wholesale
revenues were down 11.7% in the third quarter, after declining
6.2% in the second quarter, taking the low level of international
traffic into account.
Enterprise
|
|
|
|
|
|
|
|
|
Q3 2018 |
change |
change |
|
9M 2018 |
change |
change |
|
|
comparable |
historical |
|
|
comparable |
historical |
In millions of euros |
|
basis |
basis |
|
|
basis |
basis |
|
|
|
|
|
|
|
|
Revenues |
1,785 |
(2.2)% |
0.4 % |
|
5,314 |
(0.7)% |
(1.4)% |
Fixed
Only |
992 |
(3.0)% |
(3.4)% |
|
2,988 |
(2.7)% |
(4.5)% |
Voice |
342 |
(5.1)% |
(5.3)% |
|
1,040 |
(3.8)% |
(4.5)% |
Data |
650 |
(1.9)% |
(2.4)% |
|
1,948 |
(2.1)% |
(4.5)% |
IT &
Integration services |
561 |
4.0
% |
15.1
% |
|
1,610 |
4.7
% |
6.2
% |
Mobile[6] |
232 |
(11.8)% |
(11.8)% |
|
716 |
(4.0)% |
(4.0)% |
IT and integration
services continued to grow but revenues declined on a comparable
basis related to legacy services and an adjustment to the mobile
equipment sales base in the third quarter of 2017.
Revenues from the Enterprise segment
were down 2.2% in the third quarter of 2018 on a comparable basis,
the decrease would be limited to -0.5% by excluding the one-off
mobile equipment sale, which took place in the third quarter of
2017.
IT and
integration services posted 4.0% growth in the third quarter of
2018, after rising 9.7% in the second quarter. The steady growth
continued to be driven by the Cloud and Orange Cyberdefense
revenues, which were up 10% and 16% respectively year on year.
Data services
declined 1.9% in the third quarter, after a 0.9% decline in the
second quarter.
Voice services
were down 5.1% in the third quarter of 2018, after declining 4.6%
in the second quarter.
Mobile was down
11.8% in the third quarter of 2018 (stable excluding the impact
from the one-off sale of mobile equipment mentioned above).
International Carriers &
Shared Services
|
|
|
|
|
|
|
|
|
Q3 2018 |
change |
change |
|
9M 2018 |
change |
change |
|
|
comparable |
historical |
|
|
comparable |
historical |
In millions of euros |
|
basis |
basis |
|
|
basis |
basis |
|
|
|
|
|
|
|
|
Revenues |
374 |
(9.2)% |
(10.0)% |
|
1,132 |
(7.2)% |
(8.2)% |
Wholesale |
287 |
(11.8)% |
(12.1)% |
|
856 |
(10.6)% |
(11.2)% |
Other
revenues |
87 |
1.1 % |
(1.6)% |
|
276 |
5.5 % |
2.5 % |
Revenues from International
Carriers and Shared Services were down 9.2% in the third quarter on
a comparable basis, after a decline of 5.9% in the second quarter,
with a decline in voice services to international
carriers.
Growth in other revenues remained positive, up 1.1% in the third
quarter, after rising 4.8% in the second quarter. Other revenues
relate to the laying and maintenance of submarine cables,
audiovisual content (OCS and Orange Studio), consulting (Sofrecom)
and secure-TV access (Viaccess).
Schedule of upcoming events
Contacts
press: +33 1 44 44 93 93
Jean-Bernard Orsoni
jeanbernard.orsoni@orange.com
Tom Wright
tom.wright@orange.com
Olivier Emberger
olivier.emberger@orange.com
|
financial communication: +33 1 44 44 04 32 (analysts and investors)
Patrice Lambert-de Diesbach
p.lambert@orange.com
Isabelle Casado
isabelle.casado@orange.com
Samuel Castelo
samuel.castelo@orange.com
Luca Gaballo
luca.gaballo@orange.com
Didier Kohn
didier.kohn@orange.com
individual shareholders: 0 800 05 10 10 |
Disclaimer
This press release may contain
forward-looking statements about Orange, notably on objectives and
trends related to Orange's financial situation, investments,
results of operations, business and strategy. These forward-looking
statements do not constitute a forecast as defined in EU Commission
Regulation No 809/2004 and 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 Registration Document filed on 4 April 2018 with the French
Financial Markets Authority (Autorité des marchés financiers - AMF)
and in the annual report on Form 20-F filed on 4 April 2018 with
the U.S. Securities and Exchange Commission. Other than as required
by law, Orange does not undertake any obligation to update them in
light of new information or future developments.
Orange: Continued solid growth in
adjusted EBITDA
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Orange via Globenewswire
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