Light Reading
Revenues down 3.8% year-on-year, but mobile subscriber losses in France stemmed.

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
    Educational Resources
    sponsor supplied content
    Educational Resources Archive
    Flash Poll
    From The Founder
    It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
    LRTV Interviews
    The New Wave of IP + Optical Integration

    11|21|14   |   04:29   |   (7) comments


    At the Alcatel-Lucent Technology Symposium, Heavy Reading senior analyst Sterling Perrin talks about how SDN has reshaped the discussion around packet and optical integration.
    LRTV Huawei Video Resource Center
    Huawei Highlights at BBWF 2014

    11|20|14   |   3:40   |   (1) comment


    Broadband World Forum is one of the world's largest telecoms, media and technology events with over 7,800 senior executives from across the globe converging on Amsterdam every year to identify the Next Big Thing. BBWF is an exciting place to meet the entire industry under one roof and identify the latest in network innovation, service optimization and customer ...
    LRTV Huawei Video Resource Center
    How Will BCMS Stimulate Margin for Broadband Operators?

    11|19|14   |   6:52   |   (0) comments


    In BBWF 2014, Liu Shuqing emphasizes the value of FMC 2.0 based full service experience by throwing light on the BCMS solution. The underlying principle of this innovative technique is to create network robustness and driving network from connection oriented to ACE – BAND oriented infrastructure, in which applications, cloud, and user experiences will be an asset ...
    LRTV Huawei Video Resource Center
    SingleFAN3.0: Better Connected Experience

    11|19|14   |   3:06   |   (1) comment


    At the BBWF 2014, David Hu, the VP of Huawei Access Network Product Line, talked about the future of access networks – SingleFAN3.0: faster broadband, wider coverage, and smarter connection.
    LRTV Interviews
    Basil Alwan Interview: The Road to Cloud

    11|19|14   |   09:09   |   (0) comments


    Alcatel-Lucent's head of IP and Transport talks about the migration towards a web-like networking environment, the impact of the cloud, SDN and NFV, and the yet-to-be-announced FP4 chip.
    LRTV Documentaries
    FairPoint Makes a Fair Point About Analytics

    11|19|14   |   1:56   |   (1) comment


    The US-based communication service provider gets to grips with advanced analytics, tackling data and breaking down the silos within its own business.
    LRTV Documentaries
    Analytics Lets C Spire Get to Know Subs

    11|19|14   |   3:01   |   (2) comments


    It's all about the data for US operator C Spire as it uses analytics to personalize its customer service down to individual subscribers.
    LRTV Interviews
    Nuage Branches Out With SDN: CEO Interview

    11|17|14   |   9:32   |   (0) comments


    Sunil Khandekar, CEO of Alcatel-Lucent's SDN-focused unit Nuage Networks, talks about the opportunities and challenges of breaking out of the data center into wide-area networks.
    Light Reedy
    Telecom Analytics Grows Up

    11|14|14   |   1:15   |   (4) comments


    The big data analytics debate has moved on from a year ago, with some experts suggesting it's no longer a technology challenge.
    LRTV Huawei Video Resource Center
    Huawei Compass

    11|14|14   |   3:17   |   (1) comment


    At OpenStack Summit 2014, Shuo Yang, Huawei Principal Cloud Infrastructure Architect introduced Huawei Compass, the software tool for solving customers' problems on the journey of OpenStack Cloud.
    LRTV Huawei Video Resource Center
    Huawei's Cloud Strategy in European Region

    11|14|14   |   2:56   |   (1) comment


    At OpenStack Summit 2014, Dr. Gotz, CTO of Huawei IT in European Region introduced Huawei's cloud strategy in European region.
    LRTV Huawei Video Resource Center
    Huawei's Contribution on OpenStack

    11|14|14   |   5:58   |   (0) comments


    At OpenStack Summit 2014, Dennis Gu, Huawei Chief Architect of Cloud Computing introduced the relationship between OpenStack and cloud computing, and Huawei's contribution on OpenStack.
    Upcoming Live Events
    December 2, 2014, New York City
    December 3, 2014, New York City
    December 8-10, 2014, Reykjavik, Iceland
    February 12, 2015, Atlanta, GA
    April 14, 2015, New York City, NY
    May 6, 2015, McCormick Convention Center, Chicago, IL
    May 13-14, 2015, The Westin Peachtree, Atlanta, GA
    June 9-10, 2015, Chicago, IL
    Infographics
    Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
    Hot Topics
    Bell Labs Chief Slams 'Toy' Networks
    Robert Clark, 11/19/2014
    $38.3M: Ain't That a Kik in the SMS
    Sarah Reedy, Senior Editor, 11/20/2014
    Do You Have a 2020 Vision?
    Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
    Google, AT&T, BT Unite on Network Data Models
    Carol Wilson, Editor-at-large, 11/20/2014
    The New Wave of IP + Optical Integration
    Ray Le Maistre, Editor-in-chief, 11/21/2014
    Like Us on Facebook
    Twitter Feed