Light Reading

Orange Reports Q1

Light Reading
News Wire Feed
Light Reading
4/29/2014
50%
50%

PARIS --

  • Commercial momentum remained strong, led by new mobile contract offers in Europe and growth in Africa and the Middle East.
    - in France, the growth in mobile contracts remained very strong, with net sales of 86,000 contracts in the 1st quarter, whereas previous first quarters since 2010 recorded negative net sales. The Origami and Open premium offers represented more than 60% of gross consumer sales during the quarter. The acceleration of fibre-optic sales was confirmed with 47,000 new customers in the 1st quarter, giving a base of 365,000 customers at 31 March 2014 (+15% in three months).
    - in Spain, mobile contracts increased 6.4% year on year, led by the rapid growth in SIM-only offers, while growth accelerated in the fixed broadband customer base (+23.7%) with the success of the Canguro convergent offers.
    - in Poland, mobile contracts confirmed the recovery started in the 4th quarter of 2013 with a return to positive portability, and the Orange Open convergent offers increased very sharply (5x year on year).
    - in Africa and the Middle East, the mobile customer base grew considerably (+11.4% year on year) with 91.3 million customers at 31 March 2014 (including 3.3 million net additions in the 1st quarter). Orange Money had 9.9 million customers at 31 March 2014. - the Orange Group had a total of 239.4 million customers at 31 March 2014, a year-on-year increase of 4.2% (+9.6 million net additions).

  • Consolidated revenues were 9.804 billion euros, a 3.8% decrease on a comparable basis. Excluding the impact of regulatory measures, the decrease was 3.0%, an improvement of 0.8 percentage points compared to the 4th quarter 2013 figure, which primarily related to France and the Enterprise segment.
    - in France, the revenue decline slowed to 4.9% after falling 6.2% in the 4th quarter of 2013 (+1.3 percentage points). The improvement was related to both fixed and mobile services.
    - in Spain, growth (+3.2%) was slightly higher than in the 4th quarter of 2013 (+2.7%), led by mobile handset sales on instalment payment plans and by fixed services.
    - in Poland, revenues from mobile services gradually improved to a 1.0% decline after falling 2.2% in the 4th quarter of 2013: the growth in the customer base offset the effect of price reductions.
    - in the Rest of World segment, revenues were generally stable at -0.2%. Europe, which decreased 8.4% after declining 9.2% in the 4th quarter of 2013, continued to be impacted by price reductions in Belgium and Slovakia, while revenues in Romania grew 4.9%. Revenues in Africa and the Middle East continued to rise steadily, up 6.0% led by Mali, Guinea and Côte d’Ivoire.
    - in the Enterprise segment, the revenue decline was limited to 2.3% in the 1st quarter of 2014, an improvement in relation to the 4th quarter of 2013 (-4.5%), in particular due to the IT and services integration products (cloud computing +19%, security solutions +36%)

  • Restated EBITDA was 3.017 billion euros. The restated EBITDA margin (30.8%) was stable compared to the 1st quarter of 2013 on a comparable basis. The cost reduction of 267 million euros offset 69% of the revenue decline (-387 million euros). Direct costs were reduced by 5.9% (152 million euros) and indirect costs were reduced by 2.6% (114 million euros).

  • CAPEX was 1.161 billion euros, an investment rate of 11.8% of revenues (+0.6% percentage points compared to the 1st quarter of 2013 on a comparable basis) on continuing growth in fixed and mobile very high-speed broadband.

    Commenting on the results for the 1st quarter of 2014, Stéphane Richard, Chairman and CEO of the Orange Group, said: “Orange’s first quarter 2014 performance was very satisfactory, aided in large part by the continued strong commercial momentum in our core countries. Orange benefits from the efficient segmentation of its offers as well as its investment in very high-speed broadband – fibre and 4G – which enable the Group to differentiate itself from the competition.

    Continued efforts to improve the Group’s cost structure allowed us to stabilise our profit margin from the first quarter and to confirm our full-year targets for 2014. I want to thank all the employees at Orange for these results which are very encouraging for the future.”

    Orange (NYSE: FTE)

    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    Educational Resources
    sponsor supplied content
    Educational Resources Archive
    From The Founder
    Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
    Flash Poll
    Live Streaming Video
    CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
    Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
    Between the CEOs
    CEO Chat With Jeff Miller, ActiveVideo

    8|28|15   |   19:05   |   (0) comments


    Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
    LRTV Huawei Video Resource Center
    Vodafone: Mobile Money Is About Customer Trust

    8|27|15   |   06.36   |   (0) comments


    Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
    Telecom Innovators Video Showcase
    Palo Alto Networks on Expanding in the Carrier/Service Provider Market

    8|26|15   |   07:54   |   (0) comments


    Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
    LRTV Custom TV
    Global Services Forum Preview

    8|25|15   |   02:36   |   (0) comments


    Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
    Telecom Innovators Video Showcase
    Infoblox on DNS Threat Index

    8|19|15   |   04:39   |   (0) comments


    Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
    Between the CEOs
    CEO Chat With Ihab Tarazi, Equinix

    8|14|15   |   20:18   |   (1) comment


    Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
    Telecom Innovators Video Showcase
    The Netformx Ecosystem

    8|14|15   |   09:39   |   (1) comment


    Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
    Telecom Innovators Video Showcase
    Versa Networks on Leveraging VNFs

    8|12|15   |   07:37   |   (0) comments


    Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
    LRTV Custom TV
    Transforming the Network Through OPNFV

    8|5|15   |   7:09   |   (0) comments


    Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
    LRTV Huawei Video Resource Center
    Huawei ONS Product Demo

    8|3|15   |   6:01   |   (0) comments


    Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
    LRTV Custom TV
    End-User or Enterprise Benefits to the New IP

    7|30|15   |   04:27   |   (1) comment


    Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
    LRTV Custom TV
    Network Visibility & the New IP

    7|30|15   |   02:23   |   (0) comments


    Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
    Upcoming Live Events
    September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
    September 16, 2015, The Westin Galleria Dallas, Dallas, TX
    September 16, 2015, The Westin Galleria Dallas, Dallas, TX
    September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
    October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
    November 5, 2015, Hilton Santa Clara, Santa Clara, CA
    November 17, 2015, Santa Clara, California
    December 1, 2015, The Westin Times Square, New York City
    December 2, 2015, The Westin Times Square, New York City
    All Upcoming Live Events
    Infographics
    Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
    Hot Topics
    Verizon Hums a Driving Tune
    Sarah Thomas, Editorial Operations Director, 8/26/2015
    Gogo Approved to Speed Up In-Flight WiFi
    Sarah Thomas, Editorial Operations Director, 8/24/2015
    Could Market Volatility Hurt Tech IPOs?
    Dan Jones, Mobile Editor, 8/24/2015
    Sprint's Claure: '3 to 5 Years' to Turnaround
    Dan Jones, Mobile Editor, 8/25/2015
    Like Us on Facebook
    Twitter Feed
    September 22, 2015
    Media Begins With “Me”
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
    Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about data center, cloud and the impact of virtualization in the coming years.
    Cats with Phones
    Cats Are a Smartphone's Best Friend Click Here
    Whoever said cats didn't live to please their humans?