& cplSiteName &

France Telecom Reports 2012 Financials

Light Reading
News Wire Feed
Light Reading
2/20/2013
50%
50%

PARIS --

  • France made a positive contribution to this target due to the quality of its network, commercial offers and cost control:
    - Orange was ranked the best network by the French regulator ARCEP for the third consecutive year
    - after a difficult first half, the success of the new Sosh, Open and Origami segmented offers helped to stabilise the mobile market share at 37.3% (31 December 2012) and to regain a total mobile base of more than 27 million customers
    - the good performance on indirect expenses and commercial costs partially offset the increase in interconnection costs linked to voice and SMS/MMS traffic.
  • France Telecom-Orange had 230.7 million customers at 31 December 2012, an increase of 3.0% year on year (+6.8 million net additions) (1), reflecting growth in mobile, with the customer base up 4.5%:
    - in France, the mobile customer base rose 0.4% in the year
    - in Europe (excluding France), the mobile customer base grew 0.4%(1) and 4G was launched in six countries. In Spain, Orange was the market leader in mobile number portability in 2012 and mobile contracts rose 6.4%, while the fixed broadband customer base increased 10.3%
    - Africa and the Middle East had 81.6 million mobile customers at 31 December 2012, up 9.4% year on year (7.0 million net additions).
  • Consolidated revenues were 43.515 billion euros, a slight decrease of 0.6% on a comparable basis and excluding the impact of regulatory measures:
    - In France, the decline in mobile services revenues was limited to 0.9%. The national roaming contract signed with the new market entrant partially offset the impact of price decreases
    - in Europe (excluding France), revenues rose 0.9% with a 3.6% increase in Spain led by growth in fixed broadband and the rapid development of mobile Internet browsing
    - in Africa and the Middle East, revenue growth continued to be strong at 5.3%, led by Côte d’Ivoire and Guinea.
  • Restated EBITDA was 13.785 billion euros. The EBITDA margin (31.7%) fell slightly by 1.6 percentage points due to direct cost savings (reduction of commercial expenses), the control of labour expenses, and the stabilisation of other indirect costs with savings achieved as part of the Chrysalid plan. Restated EBITDA for 2012 includes excess payroll costs in France of 40 million euros linked to the employer contribution based on profit sharing (forfait social) and the 122 million euro impact related to the European Commission's decision regarding the method of financing the retirement of civil servants at France Telecom.
  • The Group share of net income was 3.387 billion euros in 2012 on a comparable basis, a 30.7% decrease in relation to the previous year (excluding the impact of the new Part-Time for Seniors agreement of -726 million euros after tax in 2012 and excluding the impairment of goodwill and assets of
    -1.841 billion euros in 2012 and -991 million euros in 2011). On a published basis, it was 820 million euros in 2012 compared to 3.895 billion in 2011.
  • Capital expenditure (5.818 billion euros) rose 1.7% compared to 2011 on a comparable basis, led by investment in very high speed fixed (FTTH) and mobile (4G) broadband, which is accelerating, notably in France. The ratio of CAPEX to revenues was 13.4%.
  • Operating cash flow (restated EBITDA - CAPEX) was 7.967 billion euros, consistent with the Group’s operating cash flow target for 2012 of close to 8.0 billion euros.
  • Net debt was 30.545 billion euros at 31 December 2012. The restated ratio of net debt to EBITDA is 2.17, in line with the objective of returning to a net debt/EBITDA ratio of close to 2 by the end of 2014 Outlook for 2013: the Group confirms its operating cash flow target of more than 7 billion euros. Several operational goals support this target, including the following priorities:
    - accelerating the transformation of the Group’s cost structure in order to reduce the cost base in 2013, and generate revenue growth in mobile data services of at least 10% for the Group,
    - France: stabilising market share in the mobile segment at a level above 35% and reaching 4G coverage of 30% of the population by the end of 2013. In the fixed segment, including the Livebox Play with at least 50% of all broadband sales, and doubling the optical fibre customer base,
    - Europe: marketing convergent offers in seven countries; launching at least six mobile network sharing programmes across the zone; increasing the Net Promoter Score in all countries,
    - Africa and the Middle East: reaching 8 million Orange Money customers and 12 million devices compatible with data services (+70%) by the end of the year; reduce the churn rate for mobile offers by 20%,
    - Enterprise: generating more than 30% growth in cloud computing over the course of the year; double digit revenue growth in emerging countries; improving customer satisfaction across the footprint. France Télécom – Orange
    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    Featured Video
    From The Founder
    Light Reading founder Steve Saunders grills Cisco's Roland Acra on how he's bringing automation to life inside the data center.
    Flash Poll
    Upcoming Live Events
    March 20-22, 2018, Denver Marriott Tech Center
    March 22, 2018, Denver, Colorado | Denver Marriott Tech Center
    March 28, 2018, Kansas City Convention Center
    April 4, 2018, The Westin Dallas Downtown, Dallas
    April 9, 2018, Las Vegas Convention Center
    May 14-16, 2018, Austin Convention Center
    May 14, 2018, Brazos Hall, Austin, Texas
    September 24-26, 2018, Westin Westminster, Denver
    October 9, 2018, The Westin Times Square, New York
    October 23, 2018, Georgia World Congress Centre, Atlanta, GA
    November 8, 2018, The Montcalm by Marble Arch, London
    November 15, 2018, The Westin Times Square, New York
    December 4-6, 2018, Lisbon, Portugal
    All Upcoming Live Events
    Hot Topics
    Has Europe Switched to a Fiber Diet? Not Yet...
    Ray Le Maistre, Editor-in-Chief, 2/15/2018
    Will China React to Latest US Huawei, ZTE Slapdown?
    Ray Le Maistre, Editor-in-Chief, 2/16/2018
    Net Neutrality: States' Rights vs. the FCC
    Mari Silbey, Senior Editor, Cable/Video, 2/13/2018
    IBM, Microsoft Duke It Out Over Chief Diversity Hire
    Sarah Thomas, Director, Women in Comms, 2/15/2018
    5G: The Density Question
    Dan Jones, Mobile Editor, 2/15/2018
    Animals with Phones
    Live Digital Audio

    A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

    Like Us on Facebook
    Twitter Feed