Orange’s 1H16 results boosted by EE sale

26 Jul 2016

Multinational telecoms giant Orange Group has published its financial results for the three months ended 30 June 2016, claiming to have continued its ‘strong commercial performance’ trend of the previous quarters driven by investment and very high-speed broadband. In the period under review, the France-based company generated a flat turnover of EUR10.070 billion (USD12.4 billion), with the group reporting a drop in revenues at its units in France (down 1.7% year-on-year), Poland (3.5%) and Belgium & Luxembourg (1.6%), which was partly offset by strong growth in Spain (up 6.2%) and Africa and Middle East (up 2.3%), led by Cote d’Ivoire, Egypt, Mali and Guinea. Restated EBITDA for Q2 2016 stood at EUR3.344 billion, marginally up 0.1% on a comparable basis from EUR3.340 billion in the year-earlier period, with a margin of 33.2% (unchanged y-o-y). Capital expenditures in the quarter under review totalled EUR1.710 billion, up 5.7% from EUR1.617 billion a year earlier.

Revenues for the first six months of 2016 were up 0.3% y-o-y to EUR20.079 billion, while restated EBITDA for the period reached EUR5.913 billion (EUR5.952 billion in H1 2015). Further, the company posted net income of EUR3.323 billion in 1H16, substantially higher than the EUR1.273 billion in the corresponding period of 2015. The improvement was attributed to the sale of EE, which was finalised on 29 January 2016.

In operational terms, Orange Group claimed 249.550 million customers worldwide at the end of June 2016, up from 248.251 million twelve months earlier. Mobile subscribers accounted for 188.562 million of these customer accounts, with 64.5% of these being pre-paid users. In its domestic market, Orange reported that its subscriber base reached 28.966 million customers, a 5.3% increase y-o-y (+1.459 million net additions). Elsewhere, Orange reported subscriber growth in the likes of Spain (where it claimed a user base of 15.667 million, up 21.9% y-o-y) and Poland (16.696 million, up 7.1%), while the Central European countries of Romania, Slovakia and Moldova had signed up a combined total of 14.835 million mobile users by end-June 2016, down from 15.843 million a year ago. Africa and the Middle East contributed a total of 108.469 million, an increase of 6.4% y-o-y, mainly due to growth in Cote d’Ivoire, Egypt and Guinea. Orange’s consolidated fixed broadband user base climbed to 17.890 million by end-June, a 10.4% improvement on the 16.207 million reported in Q2 2015, with France leading the pack in terms of net additions (426,000), followed by Spain (184,000). Fibre-to-the-home (FTTH) subscriptions, meanwhile, increased three-fold to 2.550 million, up from 960,000 in 2Q15.

France, Orange Group