Orange reports accelerated growth in revenues in H1 2018

26 Jul 2018

Multinational telecoms giant Orange Group has published its financial results for the six months ended 30 June 2018, claiming accelerated growth in revenues and adjusted EBITDA. In the period under review, the France-based company generated a total turnover of EUR20.262 billion (USD23.7 billion), a 1.7% year-on-year increase on a comparable basis. The group reported growth in revenues at its units in France (up 1.4%), Spain (3.0%), Europe (1.2%) and Africa and the Middle East (5.7%), while the Enterprise unit saw flat turnover. Adjusted EBITDA for 1H18 stood at EUR5.984 billion, up 3.3% on a comparable basis from EUR5.792 billion in the year-ago period, with a margin of 29.8% (up from 29.2%). Capital expenditures in the period under review totalled EUR3.369 billion, up 3.7% from EUR3.250 billion a year earlier. Net income attributable to equity owners of the group, meanwhile, increased to EUR789 million, up 31.3% on an annualised basis, with the EUR155 million increase primarily due to a EUR116 million improvement in net finance costs and a EUR62 million increase in operating income, partially offset by a EUR23 million increase in corporate tax charges.

In operational terms, Orange Group claimed 259.526 million customers (excluding MVNOs) worldwide at the end of June 2018, up from 257.848 million twelve months earlier. Mobile subscribers accounted for 199.05 million of customer accounts, with 61.2% of these being pre-paid users. In its domestic market, Orange reported that its mobile subscriber base (excluding MVNOs and M2M) reached 21.803 million, a 0.8% increase y-o-y. Elsewhere, Orange reported subscriber growth in the likes of Spain (where it claimed a user base of 16.044 million, up 1.3% y-o-y), and Belgium and Luxembourg (4.139 million, 4.6%), while the Central European countries of Romania, Slovakia and Moldova had signed up a combined total of 14.197 million mobile users by end-June 2018, down 1.2% from 14.670 million a year earlier. Africa and the Middle East contributed a total of 117.358 million subscribers, an increase of 0.8% y-o-y, with post-paid users increasing 29% year-on-year. Strong growth was reported in the Democratic Republic of Congo (DRC, up 22.5%), Niger (23.2%) and Burkina Faso (22.5%). Orange’s consolidated fixed broadband user base climbed to 19.687 million by end-June 2018, a 3.7% improvement on the 18.983 million reported a year earlier, of which 5.486 million were fibre-to-the-home (FTTH) and cable subscriptions (3.991 million at 1H17).

France, Orange Group