FT stays upbeat despite tough first half

30 Jul 2009

France Telecom (FT) has posted a 5.1% fall in first half EBITDA to EUR8.8 billion (USD12.4 billion) on the back of a 3.2% decline in sales to EUR25.5 billion. Net income, meanwhile, was down 4.3% year-on-year to EUR2.6 billion. The company said that the global economic slowdown has prompted subscribers to cut back their spending. CFO Gervais Pellissier stated that revenue in the second half of the year may fall further, but that the group is ‘resisting well against a backdrop of a declining world economy and a hardening regulatory environment’. By reducing costs at its computer services centres and elsewhere, FT is aiming to cut overall costs by EUR1.5 billion a year by the end of 2011. Total customer numbers at 30 June 2009 were up 6.6% to 186 million, driven by a 9.7% hike in wireless subscribers to 125.5 million.

France, Orange Group