Orange revenue growth accelerates in Q2 2021

29 Jul 2021

Orange Group has published its financial results for the three months ended 30 June 2021, claiming a ‘sharp rebound in equipment sales and sustained performance in services’ coupled with ‘outstanding performance’ in Africa & Middle East. In the period under review, the France-based company generated a total turnover of EUR10.551 billion (USD12.5 billion), a 2.6% year-on-year increase on a comparable basis (1.7% decrease on historical basis). The company said that the solid performance of the Africa & Middle East unit (up 14.4%, double the growth reported in Q1) and the results of its Europe segment, which were up 1.8% annually (6.1% when excluding Spain), more than offset the revenue decline in France (down 0.7%) and Spain (down 2.7%). EBITDAaL for Q2 2021 stood at EUR3.272 billion, down 0.4% from EUR3.312 billion in the year-earlier period. Capital expenditures in the period under review totalled EUR2.085 billion, up 33.2% from EUR1.565 billion in 2Q20.

In operational terms, Orange Group claimed 263.171 million customers (excluding MVNOs) worldwide at the end of June 2021, up from 253.076 million twelve months earlier. Mobile subscribers accounted for 218,401 million customer accounts, with 63.9% of these being pre-paid users. In France, Orange reported that its subscriber base reached 34.810 million, a 1.4% increase y-o-y (around 469,000 net additions), with 10.182 million of those subscribed to M2M.

Elsewhere, Orange reported subscriber growth in the likes of Poland (where it claimed a user base of 16.047 million, up 3.6% y-o-y) and Belgium and Luxembourg (5.061 million, 6.8%), while the Central European countries of Romania, Slovakia and Moldova had signed up a combined total of 14.217 million mobile users by mid-2021, up 1.5% from 14.009 million a year earlier, and Spain 16.072 million (up 1.3%). Africa and the Middle East contributed a total of 132.192 million subscribers, an increase of 7.0% y-o-y. Orange’s consolidated fixed broadband user base climbed to 22.095 million by June 2021, a 5.4% improvement on the 20.971 million reported a year earlier, of which 10.742 million were fibre-to-the-home (FTTH)/cable subscriptions (8.421 million in 2Q20). Fixed LTE and other technologies accounted for 1.902 million subscribers (1.611 million in June 2020).

Stephane Richard, Chairman and CEO of Orange Group, said: ‘During the second quarter the Orange Group’s growth accelerated, driven in particular by our outstanding performance in Africa and Middle East. In France our consumer market commercial results bear witness to our resilience and have contributed to the near stabilisation of EBITDAaL, in a context of the accelerated transformation of our business model from copper to fibre … In line with our Engage 2025 strategic plan, the Group’s vision remains firmly focused on creating long-term value for all of our stakeholders. Our growth engines – Africa and the Middle East, Europe, the B2B market, cyber defence, banking and our infrastructure – all have good momentum and we’re beginning to gather the fruits of our investments. This allows us to reiterate with confidence our objectives for 2023.’

France, Orange Group