Orange returns to revenue growth in 3Q20 despite impact of health crisis

29 Oct 2020

Orange Group has published its financial results for the three months ended 30 September 2020, claiming a return to revenue growth despite the impact of the health crisis. In the period under review, the France-based company generated a total turnover of EUR10.584 billion (USD12.44 billion), a 0.8% year-on-year increase on a comparable basis (0.1% on historical basis). EBITDAaL for 3Q20 stood at EUR3.584 billion, down 0.4% from EUR3.597 billion in the year-earlier period. Capital expenditures in the period under review totalled EUR1.730 billion, up 0.9% from EUR1.715 billion in Q3 2019.

In operational terms, Orange Group claimed 256.983 million customers (excluding MVNOs) worldwide at the end of September 2020, up from 255.148 million twelve months earlier. Mobile subscribers accounted for 211.856 million customer accounts, with 64.0% of these being post-paid users. In France, Orange reported that its subscriber base reached 34.532 million, a 1.0% increase y-o-y (over 353,000 net additions), with 10.101 million of those subscribed to M2M.

Elsewhere, Orange reported subscriber growth in the likes of Poland (where it claimed a user base of 15.669 million, up 3.5% y-o-y) and Belgium and Luxembourg (4.824 million, 4.8%), while the Central European countries of Romania, Slovakia and Moldova had signed up a combined total of 14.441 million mobile users by end-September 2020, down 2.1% from 14.744 million a year earlier, and Spain 16.021 million (down 2.2%). Africa and the Middle East contributed a total of 126.368 million subscribers, an increase of 1.6% y-o-y. Orange’s consolidated fixed broadband user base climbed to 21.301 million by Q3 2020, a 3.9% improvement on the 20.506 million reported a year earlier, of which 8.997 million were fibre-to-the-home (FTTH)/cable subscriptions (7.380 million in 3Q19). Fixed LTE and other technologies accounted for 1.743 million subscribers (1.342 million in September 2019).

Stephane Richard, Chairman and CEO of Orange Group, said: ‘From the beginning of the year Orange Group has demonstrated its resilience in all its markets in the face of an unprecedented health and economic crisis. Our networks have proven their robustness, our commercial performance has been very positive and we are in line with all our financial objectives for the year. We returned to top-line growth in the third quarter (+0.8%) with EBITDAal on a more favourable trend than in the previous quarter (-0.4%), giving us added confidence in terms of the delivery of our guidance … Strengthened by these good performances, we are accelerating the rollout of our Engage 2025 strategy. After Romania, we have recently launched 5G offers in Poland and in Spain. In France, we have acquired the largest bloc of 5G frequencies and this will allow us to maintain our leadership in mobile networks.’

France, Orange Group