Post-paid customer increase spurs 5.8% revenue growth at Orange

2 Apr 2013

Orange Switzerland has booked revenues of CHF1.321 billion (USD1.391 billion), for the year to end-December 2012, expanding income by 5.8% compared to 2011 on the back of a 6.0% increase in the telco’s post-paid subscriber base, with the resulting growth in ARPU offsetting the effects of pricing pressure. Earnings before interest tax, depreciation and amortisation (EBITDA) were CHF340.1 million for the year, with an EBITDA margin of 25.7%, compared to CHF310.4 million and 24.9% in 2011. Orange noted that mobile data traffic increased by 89% year-on-year, with data revenues increasing by 34%. It expects this trend to continue with the launch of its 4G Long Term Evolution (LTE) network later this year.

The cellco ended the year with 1.669 million wireless subscribers, of which 1.063 million were on monthly contracts. Orange’s reporting classifies an inactive pre-paid subscriber as one going three months with no outbound chargeable events and fewer than four inbound chargeable events. This differs from that of incumbent Swisscom, which defines inactivity as twelve months without any events. Orange claims that using Swisscom’s reporting style, its subscriber base would be 2.125 million, including 1.061 million pre-paid users giving it a market share of more than 20%, compared to its current level of around 16%. ARPU for the year was CHF56.0, compared to CHF55.5 in 2011.

Switzerland, Salt (Switzerland)