Orange Group reports continued growth in revenues, EBITDA in 1Q18

27 Apr 2018

Multinational telecoms giant Orange Group has published its financial results for the three months ended 31 March 2018, claiming improved adjusted EBITDA margin and an increase in operating cash flow. In the period under review, the France-based company generated a total turnover of EUR10.08 billion (USD12.2 billion), a 2.0% year-on-year increase on a comparable basis. The group reported growth in revenues at its units in France (up 2.1%), Africa and Middle East (6.2%) and Spain (4.3%), which was partly offset by a drop in Poland (down 0.6%) and Enterprise (-1.3%). Adjusted EBITDA for 1Q18 stood at EUR2.61 billion, up 3.8% on a comparable basis from EUR2.51 billion in the year-ago period, with a margin of 26.1% (up from 25.5%). Capital expenditures in the period under review totalled EUR1.53 billion, up 3.7% from EUR1.47 billion a year earlier.

In operational terms, Orange Group claimed 262.77 million customers (excluding MVNOs) worldwide at the end of March 2018, up from 254.59 million twelve months earlier. Mobile subscribers accounted for 201.86 million of customer accounts, with 62.7% of these being pre-paid users. In its domestic market, Orange reported that its mobile subscriber base (excluding MVNOs and M2M) reached 21.73 million, a 0.6% increase y-o-y. Elsewhere, Orange reported subscriber growth in the likes of Spain (where it claimed a user base of 16.08 million, up 2.0% y-o-y), and Belgium and Luxembourg (4.05 million, 3.2%), while the Central European countries of Romania, Slovakia and Moldova had signed up a combined total of 14.48 million mobile users by end-March 2018, down 1.4% from 14.68 million a year earlier. Africa and the Middle East contributed a total of 120.87 million subscribers, an increase of 6.9% y-o-y, mainly due to growth in the Democratic Republic of Congo (DRC, up 21.7%), Cameroon (23.7%), Burkina Faso (25.0%), Liberia (10.5%) and Cote d’Ivoire (11.9%). Orange’s consolidated fixed broadband user base climbed to 19.59 million by end-March 2018, a 4.0% improvement on the 18.82 million reported a year earlier, of which 5.14 million were fibre-to-the-home (FTTH) and cable subscriptions (3.69 million at 1Q17).

France, Orange Group