France Télécom reports 3.5% rise in EBITDA in Q3

26 Oct 2006

France Télécom (FT) has reported a 3.5% rise in underlying third-quarter profit as the impact of its purchase of Amena in Spain helped offset the effects of price competition and higher subscriber acquisition costs. The French telco beat analyst forecasts to report earnings before interest, tax, depreciation and amortisation (EBITDA), otherwise known as its gross operating margin, of EUR4.88 billion (USD6.15 billion) for the July-September period, compared with a forecast of EUR4.77 billion from a Reuters’ poll of ten analysts, and higher than the EUR4.72 billion reported in Q3 2005 (excluding the sale of its directory business PagesJaunes, which completed earlier this month).

FT posted revenues of EUR13.07 billion in its fiscal third quarter, up from EUR11.99 billion a year ago (excluding PagesJaunes) and confirmed its organic cash flow target of EUR7 billion for 2006.The third-quarter sales performance beat a forecast of EUR12.87 billion from a Reuters poll.

France, Amena (Retevisión Móvil), Orange Group