Orange Ups ARPU in Q1Orange Ups ARPU in Q1
Orange revenues totaled €4.26B, up 9.4% from last year's Q1, as its customer base expands and both voice and non-voice ARPU grows
April 29, 2003
PARIS and LONDON -- Orange today announces its first quarter customer and revenue numbers, showing continued solid revenue growth and continued positive trends in average voice and non-voice revenue.
Revenues (1)(2): Total revenues were €4.26billion, an underlying increase of 9.4% over Q1 2002 pro forma revenues of €3.89billion (on a pro forma basis(2)(b) to include MobiNil and assuming constant exchange rates). At reported exchange rates, the percentage increase was 4.8% over Q1 2002 pro forma(2)(a) (to include MobiNil) revenues.
Recurring network revenues for the group increased 10.6% over Q1 2002 pro forma(2)(b), (again, including MobiNil and assuming constant exchange rates) to €3.92 billion. At reported exchange rates, the increase in recurring network revenues was 5.9% over Q1 2002 pro forma(2)(a) (including MobiNil).
Recurring network revenues from the Rest of World segment increased 24% over Q1 2002 (pro forma including MobiNil and constant exchange rates), to €905 million. Total revenues in the Rest of World operations passed €1billion for the quarter.
Recurring network revenues account for 92% of total revenues.
Contribution from non-voice services increased 29% over Q1 2002, to €495 million for the quarter, 12.6% of group recurring network revenues (10.4% in Q1 2002).
Annual average revenues (4): previous encouraging trends in ARPU have continued, with growth in both voice and non-voice revenues.
France : The rate of decline in overall French ARPU continued to fall, with Q1 2003 annual average revenue per user down 3.4% over Q1 2002, to €375.
Within this, French contract ARPU was €552 (versus €580 at Q1 2002) and prepay ARPU was €162 (versus €172).
ARPU from non-voice services increased 21% to €35 for the twelve months ending March 2003, and accounted for 9.3% of recurring network revenues. For Q1 2003 alone, Orange France non-voice revenues represented 11.3% of total recurring network revenues.
Voice only ARPU was €340 for the twelve months to end March 2003, a 5.3% decline on Q1 2002. This followed a 5.8% increase in annual rolling average usage(8) (to 146 minutes per month), offset by the regulated decline in incoming call charges.
UK (7) : overall annual average revenue per user increased faster than ever, up 7.3% to £263 (£245 for Q1 2002)
Within this, contract ARPU increased 3.9% over Q1 2002, to £563, while prepay ARPU increased 3.3% to £125. An improvement in the quality of the customer base accounted for the rest of the ARPU growth, as the proportion of contract customers increased to 32%.
Of the £18 annual ARPU growth since Q1 2002, 50% came from voice usage and 50% from non-voice services.
For the twelve months to end March 2003, average non-voice revenue per user increased 30%, to £39, and accounted for 14.9% of UK recurring network revenues. For Q1 2003 alone, non-voice revenues were 15.8% of total recurring network revenues in the UK.
For the twelve months to end March 2003, average voice revenue per user was £224, an increase of 4.2% over Q1 2002 (the quarter when voice ARPU reached inflection point). This is comfortably in line with our target of delivering a 5% uplift in UK voice ARPU by 2005.
The increase in average voice revenues was generated through an increase in overall average usage (from 137 minutes per month at Q1 2002, to 142 minutes), and from an improvement in the average quality of traffic carried.
Rest of World : Total revenues in the Rest of World segment exceeded €1billion for the quarter, a 21% increase over the pro forma (including MobiNil and assuming constant exchange rates) result for the same quarter last year. At reported exchange rates, the increase over Q1 2002 pro forma total revenues (including MobiNil) was 13.6%.
Recurring network revenues increased more, by 24% (pro forma including MobiNil and constant exchange rates) to € 905 million, with all businesses performing well.
Mobistar in Belgium increased recurring network revenues 16% to €234 million in the quarter.
Orange Switzerland increased recurring network revenues 26% to €177 million in the quarter.
The recently re-branded Orange Netherlands increased recurring network revenues 21% to €99 million in the quarter.
MobiNil in Egypt significantly increased network revenues in local currency. Underlying pro forma growth (assuming constant exchange rates) was 29% higher than over the same quarter last year. However, this was impacted by exchange rate movements, which led to a fall of 9% in Euro reported recurring network revenues, to €88 million.
Customers (1)(2): Group controlled customer base increased 7% over pro forma Q1 2002 (including MobiNil), to 44.9 million:
Net additions were 557k in Q1 2003, mostly contributed by the Rest of World businesses. Of the growth in the quarter, 333k were on contract tariffs.
The French and UK customer bases increased by over 5% each compared with Q1 2002, to 19.2 and 13.3 million respectively, with notable success in improving the quality and value of the customer base.
Rest of World customers increased 13% year on year on a pro forma basis including MobiNil, to 12.4 million. Of these, 30% of the net additions are contract customers.
Sol Trujillo, Chief Executive Officer, said: "These are solid numbers, which clearly demonstrate Orange's focus on quality growth - not 'empty calorie' customers. Good, continuing trends in average customer usage and both voice and non-voice revenues are increasing the value of Orange's customer base and show the opportunity for significant quality growth ahead. We now intend to increase our rate of investment in targeted customer acquisition, retention and usage programmes, in order to take advantage of this. We expect the impact of this to start building progressively from the second half onwards, and this will dovetail with the evolution of Orange's strategy, which we intend to present at the end of June."Orange SA
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