Mobile and broadband help FT beat analyst expectations

28 Jul 2005

France Télécom (FT) has reported first half 2005 revenues of EUR23.7 billion (USD29.2 billion), up 2.3% year-on-year on a pro forma basis and 4.5% on an actual basis. Sales growth at mobile division Orange accounted for almost the entirety of the increase, as turnover from FT’s fixed line, enterprise and directories divisions was largely flat. Overall net income more than tripled to EUR3.4 billion, well above analyst expectations of approximately EUR2 billion.

Orange’s total subscriber base rose from 57.3 million twelve months ago to 66.7 million customers at the end of June. This is set to rise further once the recently agreed acquisition of Spanish cellco Amena is completed. The transaction – valued at EUR6.4 billion – is FT’s biggest foreign purchase in more than four years. Meanwhile, in the fixed line division FT enjoyed an 80% rise in European broadband customers in Europe to 6.4 million, of which 3.7 million were in France and 927,000 in Poland.

France, Orange Group