France Telecom Reports 2010

The number of Group customers at 31 December 2010 grew 6.0% year on year on a comparable basis to 209.6 million

Consolidated revenues rose 0.6% in 2010, excluding regulatory effects, to 45.503 billion euros, with a second-half increase of 1.2% driven by all countries

In France, a reinvigorated commercial strategy resulted in:
- an estimated 36% share of 4th quarter net additions in the ADSL market;
- in mobile, customer market share was 46.6%

In line with our goals, erosion of the restated EBITDA margin for 2010 was limited to -0.9 percentage points, reaching 34.4%, with a total restated EBITDA of 15.642 billion euros

Net income Group share was 4.880 billion euros in 2010, an increase of 28%

Net debt was 31.840 billion euros at 31 December 2010, a decrease of 694 million euros over the year. The restated net debt to EBITDA ratio was stable at 1.95

In line with the Group’s 2010 objectives:
- CAPEX represented 12.1% of revenues, with investments of 5.522 billion euros;
- organic cash flow was 8.11 billion euros

The Group confirms its financial targets for 2011 and renews its commitment to pay a dividend of 1.40 euros per share for 2010, 2011 and 2012



For 2010, the balance of the dividend (0.80 euros per share) will be paid on 15 June 2011

Commenting on the Group's 2010 consolidated results, France Telecom CEO Stéphane Richard said:“The Group’s strong performance in 2010 signals we are on the right track with our new business plan Conquests 2015. Thanks to the collective commitment of all our colleagues we have restored both energy and ambition to our commercial offering while also meeting all our financial objectives.

"For example in France our quadruple play offer, Open, met with great success and as a result our share of new ADSL subscriber wins returned to the level in line with our market leader status. The implementation of a new social contract has set in place the foundations for a new and constructive way of working within the company.

"In Spain, in spite of a testing economic backdrop, we very significantly improved our market position in the mobile business while increasing our profitability.

“We also strengthened the Group’s international presence in 2010 by rolling out our brand in Tunisia, by establishing ourselves in Morocco, by acquiring an interest in Meditel and by bringing clarity to our relations with our partner in Egypt. We have already made good progress towards our objective of doubling our revenues in the emerging countries by 2015.

“These encouraging results mean we start 2011 in a confident mood and steadily pursuing our Conquests 2015 objectives in the service of our customers.”

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