Orange Aims to Achieve Additional Savings of EUR1 Billion by 2020
07 Dezembro 2017 - 6:28AM
Dow Jones News
By Marc Navarro Gonzalez
Orange (ORA.FR) said Thursday that it aims to achieve additional
gross savings of 1 billion euros ($1.18 billion) by the end of
2020, which will be partially reinvested to enhance its networks
and increase the services it offers.
The French telecommunications group said at its 2017 investor
day that it will use a lean capital-expenditure program to reduce
unit costs by 15% in the next three years, which will generate
savings of up to EUR1 billion. The company has already surpassed
the EUR3 billion of gross savings originally forecast for the
2015-2018 period, it said.
Paris-based Orange aims to reach a peak investment spend of
EUR7.4 billion in 2018, adding it expects this figure to decline
from 2019 onwards.
Orange expects growth in adjusted earnings before interest,
taxes, depreciation and amortization of around 2% in 2017, followed
by an acceleration of the growth rate in 2018 and continued growth
in 2019 and 2020.
"We have seen a return to revenue growth a full year ahead of
plan, and this momentum, combined with our
operational efficiency program, has enabled us to renew growth
of our adjusted Ebitda and engage us in a cycle of sustainable
value creation," Orange's Chief Executive Stephane Richard
said.
The company said it would primarily use digitalization,
simplification and resource pooling to achieve its savings
target.
Write to Marc Navarro Gonzalez at
marc.navarrogonzalez@dowjones.com
(END) Dow Jones Newswires
December 07, 2017 03:13 ET (08:13 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Orange (EU:ORA)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Orange (EU:ORA)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024