France Telecom results in line with expectations

27 Jul 2004

France Telecom has reported a fall in net profit to EUR1.1 billion for the first half of 2003, compared to EUR2.5 billion in the year-ago period. Consolidated revenues, however, rose 4.2% on a comparable basis (1.4% on an actual basis) during the year to EUR23.2 billion, with EBITDA growing by 13.5% to EUR5.3 billion at the end of June, on the back of sales of EUR23.2 billion. France Telecom’s mobile unit Orange contributed significantly to the results, boasting revenue growth of 11.2%, as did broadband arm Wanadoo which saw revenues rise 11.9%, largely offsetting the 1% decline in revenues reported at the Fixed Line, Distribution, Networks, Large Customers and Carriers segment. The results were largely in line with analysts’ expectations.

At the end of June 2004 the France Telecom group had a total of 119.6 million customers across the world. 58.5 million of these were mobile subscribers, spread across 20 countries, 49.5 million were fixed line customers in nine countries, 10.8 million were internet access customers, and 0.9 million subscribed to cable networks. Orange claimed 20.4 million customers in France and 13.7 million in the UK – its two largest markets – with 1.5 million in the Netherlands, 2.2 million in Slovakia, 612,000 in Denmark, 3.9 million in Romania, 2.6 million in Belgium, 1.2 million in Switzerland and 2.3 million in Egypt, where it operates through a 71.25% stake in MobiNil.