International telecoms giant Orange Group (formerly France Telecom) has published its financial results for the six month period ended 30 June 2013, reporting a 4.5% drop in revenue on an annualised basis, to EUR20.60 billion (USD27.23 billion). EBITDA for the period under review slumped 7.6% to EUR6.42 billion, down from EUR6.94 billion, while operating income decreased from EUR3.49 billion to EUR2.99 billion. Net income for 1H13 plummeted from EUR1.91 billion to EUR1.21 billion. CAPEX for the first six months of 2013 rose 0.9% to EUR2.46 billion, led by increased investment in 4G Long Term Evolution (LTE) and fibre-to-the-home (FTTH) network infrastructure in Orange’s domestic market. The ratio of CAPEX to revenues was slightly improved by 0.6 percentage points to 11.6% compared to the first half of 2012.
In operational terms, Orange reported a total of 231.5 million customers at 30 June 2013, a 3.1% increase year-on-year. Of this figure, 173.6 million users were subscribed to mobile services, representing an annual increase of 4.6%, or 7.7 million net additions. Africa and the Middle East contributed a total of 84.0 million mobile customers at 30 June 2013, an increase of 9.8% (390,000 net additions). Elsewhere, Orange reported subscriber growth in the likes of Spain, the Dominican Republic, Moldova, Poland, Romania and Luxembourg, while operations in the UK, Slovakia and Belgium all saw their mobile customer bases contract.
Orange chairman and CEO Stephane Richard commented: ‘Against a macro-economic and competitive backdrop that remains difficult in our main markets, these results demonstrate the effectiveness of our strategy both commercially and in terms of reducing our cost structure. We are also maintaining the rollout of our high-speed fibre and 4G networks and [we] are seeing [a] real appetite for very high speed broadband from our customers who are showing a willingness to pay a premium to access these services. These results allow us to confirm our 2013 objectives and to be confident in our ability to stabilise our operational cash flow in 2014.’