France Telecom has dropped its full-year sales forecasts after seeing lower than expected revenue growth in the third quarter. The company reported a 3.8% year-on-year increase in revenues to EUR12.26 billion in the three months to the end of September, although on a pro forma basis the rise was just 1.6%. Growth was held back by a poor performance at FT’s corporate networks division and at its Polish subsidiary TP SA. Full year sales growth targets have now been revised to “nearly 3%”, down from the firm’s last forecast of between 3% and 5%. Third quarter operating income was up 2.1% (0.9% pro forma) to EUR4.86 billion.
The group’s key revenue drivers were mobile and broadband internet services. By the end of September France Telecom’s Orange unit had 70 million subscribers worldwide, up 17% on the previous year. It claims 643,000 EDGE/UMTS high speed mobile subscribers, including 424,000 in France, and also claims pole position in the French ADSL market, with four million customers.