France Telecom reports 6.2% growth in annual revenues to €49 billion

February 14, 2006

2 Min Read

PARIS -- 2005 Annual Results:

  • 6.2% growth in revenues (2.5% on a comparable basis) toEUR 49 billion

    • Significant success in 2005 in a rapidly changing market

    • Sharp increase in the Group's fixed-line and wireless broadband customer base

    • Launch of the first convergent offers and first tangible successes of NExT

  • Strong operational performance in 2005, with net income almostdoubling

    • Gross Operating Margin of EUR 18.56 billion (excluding the impact of the consolidation ofAmena and the EUR 256 million fine levied by the French Competition Council)

    • Net income Group share up to EUR 5.7 billion, compared with EUR 3 billion in 2004

    • EUR 7.5 billion in organic cash flow generated

    • Ratio of net debt to Gross Operating Margin of 2.48 (after Amena acquisition), in line withcommitment to lower ratio to under 2.5 by end 2005, and net financial debt of EUR 47.846billion at December 31, 2005

  • Accelerated implementation of NExT in 2006

    • Tighter control of the business and accelerated transformation of the company

    • Shorter time-to-market for convergent offers

    • Country-level integration and network integration by end 2006

  • For 2006: priority to generating EUR 7 billion in organic cash flow

    • Revenue growth over 7% (approximately 2% on a comparable basis)

    • GOM ratio 1 to 2 percentage points lower than in 2005

    • CAPEX to revenues ratio of about 13%

  • Debt reduction guidance maintained and strong increase of dividend

    • Debt reduction guidance confirmed (ratio of net debt to GOM under 2 by end 2008)

    • Proposed dividend of EUR 1 in 2006 for financial year 2005 (up 108%).

    • Strong increase in shareholder return for following years: objective of distribution of 40% to45% of organic cash flow.

    • 2007 dividend of EUR 1.20 indicated by Board of Directors for financial year 2006

    • Highly selective and prudent external growth

    Presenting the 2005 results, Didier Lombard, Chairman and Chief Executive Officer ofFrance Telecom, said: "Our environment is changing; we have to change even faster. Ourexceptional assets – ADSL, Livebox, Wireless Broadband and Content – are the four pillarson which we will build all our new services. Many of these services will be launched in 2006,under the banner of a strong brand. Thanks to the transformation that I initiated with all theGroup’s employees, France Telecom will be even more responsive and effective and willmaintain its leadership".

    Orange (NYSE: FTE)

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like