FT reports ‘very good’ performance in 2007; net income up 52%

6 Feb 2008

French telecoms heavyweight France Telecom (FT) reported a 52% year-on-year rise in consolidated net income in 2007 from EUR4.1 billion (USD6 billion) to EUR6.3 billion, driven by strong growth at its mobile arm Orange, and beating an average forecast of EUR5.53 billion in a Dow Jones’ poll of analysts. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to EUR19.12 billion from EUR18.54 billion a year ago on revenues of EUR52.959 billion (+2.8% y-o-y). Sales were particularly strong in the fourth quarter, registering a 3.6% rise on the same period of 2006. FT said it met or exceeded all of its operational and financial objectives in 2007. It recorded a gross operating margin of EUR19.1 billion, up 3.4% on a comparable basis, while organic cash flow of EUR7.8 billion was above the target of EUR7.5 billion. Group CAPEX of EUR7 billion was broadly in line with the company’s stated aim of capital expenditure of 13% of revenues.

France, Orange Group