Light Reading

Orange Reports Q1

Light Reading
News Wire Feed
Light Reading


  • 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
    Steve Saunders provides an overview of white box networking and introduces a new "slim line" version of the OSI 7-layer model.
    Flash Poll
    Live Streaming Video
    CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
    Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
    Wagner’s Ring
    How Might Open Source Fail?

    11|24|15   |     |   (2) comments

    Open source, SDN, and NFV are looking inevitable – but performance, standards proliferation and regulatory capture could derail the movement.
    LRTV Custom TV
    NFV Lifecycle Orchestration – a Fresh Vision for Telco

    11|23|15   |   6.40   |   (0) comments

    Simon Osborne, CTO Comptel, and Heavy Reading's Caroline Chappell reveal the business impacts of new SDN and NFV, and what the term service orchestration actually means. Together they define Lifecycle Service Orchestration and how the virtualized future will look for telecoms operators.
    Between the CEOs
    Cisco's Virtual Role in Saudi

    11|20|15   |   12:15   |   (1) comment

    Light Reading founder and CEO Steve Saunders talks with Zayan Sadek, Regional Manager at Cisco Systems, about the competitive communications services market and advance of virtualization in Saudi Arabia.
    LRTV Huawei Video Resource Center
    Huawei Leads With Kubernetes for Cloud PaaS

    11|19|15   |   08:26   |   (0) comments

    Huawei is looking to Kubernetes as a key tool for building robust open source technologies for customers and partners, said Ying Xiong, chief architect of cloud platform at Huawei, in an interview with Light Reading West Coast Bureau Chief Mitch Wagner at the recent Kubecon conference.
    Women in Comms Introduction Videos
    WiC in London: The Highlight Reel

    11|19|15   |   5:33   |   (1) comment

    NetCracker's Mervat El Dabae headlines an inspiring morning in London with help from leading women from Vodafone, TalkTalk, Hyperoptics and Ciena.
    LRTV Documentaries
    Why Saudi's So Hot for New Tech

    11|19|15   |   05:07   |   (0) comments

    Light Reading's Steve Saunders reports from Saudi Arabia, a hyper-competitive market desperate to embrace the next generation of communications technologies and services.
    LRTV Custom TV
    Why Data Models Deliver More Value Than Information Models

    11|19|15   |   5.08   |   (0) comments

    Stefan Vallin argues that more automation is needed to manage end-to-end services and the hybrid networks they run on, and that data models are key to achieving this.
    Telecom Innovators Video Showcase
    SDN Management & Orchestration in the WAN

    11|17|15   |   7.20   |   (0) comments

    Carol Wilson and Packet Design CTO Cengiz Alaettinoglu discuss CSPs' SDN service delivery and assurance requirements. Learn about a modular approach to building automated control, orchestration and management functions for the WAN that are policy- and analytics-driven.
    LRTV Custom TV
    Flash Networks: Optimizing for Radio Spectral Efficiency

    11|17|15   |   3:34   |   (0) comments

    Today most optimization vendors only focus on optimizing voice or data. Ofer Gottfried, Flash Networks' CTO, shows how improving data throughput and maximizing spectral efficiency reduces capital and operating expenses while also providing a platform for user engagement.
    LRTV Custom TV
    Making Pay-TV User Experiences Millennial-Friendly

    11|16|15   |   6:42   |   (0) comments

    The unique challenge of reaching and engaging Millennials is driving pay-TV video experience transformation that can include higher quality UIs, viewing of multiple content streams at once and seamless transitions between handheld devices and the television.
    LRTV Huawei Video Resource Center
    Huawei Electric Power Summit 2015 – Addis Ababa, Ethiopia

    11|16|15   |   1:28   |   (0) comments

    Huawei, together with Ethiopia's Ministry of Water, Irrigation and Electricity, hosted the Huawei Electric Power Summit 2015 in Addis Ababa, Ethiopia. The event gathered industry experts and senior executives of global electric power companies to discuss emerging industry trends including: improvements in new energy conversion efficiency, reduction of line losses ...
    Between the CEOs
    Mobily on Bringing Innovation to Saudi Arabia

    11|13|15   |     |   (2) comments

    Mobily CEO Ahmad Farroukh talks to Steve Saunders about the realities of being a mobile operator in Saudi Arabia.
    Allot MobileTrends Report H2/2015 reveals how daily online behavior can be used to discover smarter ways to profile customers and propose valuable, real-time offers to them.
    Hot Topics
    Samsung to Sell Wireless Networking Unit?
    Dan Jones, Mobile Editor, 11/23/2015
    Sprint Undercuts Rivals With Half-Price Offers
    Dan Jones, Mobile Editor, 11/18/2015
    Routers Are Facing Extinction: Let’s Not Save Them
    Scott Sumner, VP solutions marketing, Accedian Networks, 11/18/2015
    Sprint, Verizon Face Reorganization, Job Cuts
    Dan Jones, Mobile Editor, 11/20/2015
    Sprint to Get $1.2B From New Leasing Venture
    Dan Jones, Mobile Editor, 11/23/2015
    Like Us on Facebook
    Twitter Feed
    December 15, 2015
    Virtualizing Cable Services
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Light Reading founder and CEO Steve Saunders talks with Zayan Sadek, Regional Manager at Cisco Systems, about the competitive communications services market and advance of virtualization in Saudi Arabia.
    Mobily CEO Ahmad Farroukh talks to Steve Saunders about the realities of being a mobile operator in Saudi Arabia.
    Cats with Phones
    Live Digital Audio

    Broadband speeds are ramping up across Europe as the continent, at its own pace, follows North America towards a gigabit society. But there are many steps to take on the road to gigabit broadband availability and a number of technology options that can meet the various requirements of Europe’s high-speed fixed broadband network operators. During this radio show we will look at some of the catalysts for broadband network investments and examine the menu of technology options on offer, including vectoring and for copper plant evolution and the various deployment possibilities for FTTH/B.