France Telecom 3Q performance boosted by new Open offering and smartphones

28 Oct 2010

France Telecom Group’s results for the third quarter of the year show the company has outperformed expectations. Revenue for the quarter was EUR11.63 billion (USD16.06 billion), up 1.1% compared to the same period a year earlier excluding regulatory measures, while restated earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at EUR4.26 billion. CAPEX was EUR3.4 billion in the first nine months of 2010, and EUR1.26 billion in the quarter.

The company’s new quad-play offering ‘Orange Open’ was said to have boosted business in its home market, where the group earns half of its revenue and profits. Since Open was launched in mid-August France Telecom’s share of net new ADSL subscribers in France rose significantly to around 32.8% from 15.5% in the second quarter, as around 99,000 customers had subscribed to the new service. Across all services the group had 203.4 million customers as of 30 September 2010; Orange branded mobile services led the group’s growth with a total of 144.5 million subscribers, up 8% year-on-year, while 3G subscribers were 33.5 million, up 36.6%. Mobile revenues were up 6.6% in the third quarter in France, buoyed by the success of smartphones and growth in data services. Mobile services were also said to be recovering in Spain and Portugal, although the company reported that the highest growth rates were in Africa and the Middle East which reported 18.7% combined year-on-year growth to reach a total of 54.8 million customers at 30 September 2010.

France, Orange France, Orange Group