Market pressure drives down Orange earnings

29 Nov 2013

Orange Switzerland has registered a 0.3% year-on-year decline in revenues for its third quarter, as market pressure drove down the cellco’s ARPU. Turnover for the three-month period to 30 September 2013 was CHF337.8 million (USD372.52 million), compared to CHF338.7 million a year earlier, whilst revenues for 9M 2013 were down 0.5% at CHF964.3 million. Meanwhile EBITDA climbed by 10.1% y-o-y to CHF113.4 million, as the operator reduced its labour, interconnection and brand expenses. The cellco’s total subscriber base grew by 2.4% on an annual basis to 1.691 million, although this included a 5.9% drop in users on pre-paid plans to 571,000. Third quarter ARPU, meanwhile dropped by 5.9% y-o-y from CHF59.1 to CHF55.6. Orange noted that its 4G network is on track to cover 71% of the nation’s population by the end of 2013, having installed more than 1,000 4G base stations in 100 cities.

Switzerland, Salt (Switzerland)