Financial results at 31 December 2019
Press releaseParis, 13 February
2020
Financial results at 31 December 2019
Growth in 2019 revenues and EBITDAaL,
with an acceleration in the 4th quarter
Solid commercial performance in France,
excellent results in Africa & Middle East, return to growth in
Enterprise revenues and sustained growth in Europe.
In millions of euros |
|
4Q 2019 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2019 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
11,088 |
1.1% |
2.6 % |
|
42,238 |
0.6% |
2.1% |
EBITDAaL |
|
3,288 |
1.3% |
na |
|
12,860 |
0.8% |
na |
Operating Income |
|
|
|
|
|
5,927 |
|
22.7% |
Consolidated net income |
|
|
|
|
|
3,226 |
|
49.4% |
eCAPEX (excluding licenses) |
|
2,059 |
(7.0)% |
na |
|
7,293 |
0.6% |
na |
Operating Cash-Flow (EBITDAaL - eCAPEX) |
|
1,228 |
19.3% |
na |
|
5,568 |
1.0% |
na |
Organic Cash Flow (telecom activities) |
|
|
|
|
|
2,345 |
|
(5.8)% |
Annual results confirm the achievement of the
objectives announced for 20191.
- Group revenues grew 0.6% in 2019 and 1.1% in the fourth
quarter, accelerating from 0.8% in the previous quarter
- This increase was driven by the still very strong momentum in
Africa & Middle East, which grew 6.2%, and by the solid
performance in Europe and the return of growth in Enterprise, up
1.4% and 1.0% respectively in 2019. These more than compensated for
a very slight decline in France of 0.3% and a decline in Spain of
1.5% in 2019 due to that market's shift towards low cost.
- Group EBITDAaL grew 0.8% in 2019 and 1.3% in the fourth
quarter, accelerating from an increase of 0.2% in the previous
quarter, and supported by revenue growth and cost control.
- Excluding the effects of digital content offers, revenue and
EBITDAaL growth was 0.8% and 1.5% respectively for 2019.
- Group eCAPEX was up 0.6% in 2019, including the effect of
sharing the mobile access network with Vodafone in Spain. Excluding
this, eCAPEX decreased slightly. This performance was achieved
against a backdrop of accelerating fiber deployment in France.
- Organic Cash Flow from telecoms activities reached 2.3 billion
euros, significantly exceeding the objectives announced for
2019.
These good results are the fruit of the Group's
strategy centered on enhanced connectivity and new growth areas,
which help to expand the customer bases:
- Convergent offers totaled 10.8 million customers at December
31, 2019, up 3.4% year on year, enabling Orange to consolidate its
position as Europe's leading convergent operator.
- With 7.3 million fiber customers, Orange is the undisputed
leader in fiber in Europe, posting strong growth in 2019 with
745,000 net sales in France and a record fourth quarter in both
France and Poland with 239,000 and 47,000 net sales
respectively.
- In Africa & Middle East, 4G deployment continued, reaching
more than 23.8 million customers by the end of 2019, an increase of
42.6% year on year. Orange Money, with a base of 18.2 million
active customers at the end of 2019, grew 20.1% in one year.
- IT&SI activities as a share of Enterprise revenues reached
37.2% in 2019, up 2 points compared to 2018. This increase reflects
the performance of cloud and cybersecurity services, where Orange
has become a European leader thanks to the acquisitions of
SecureData and SecureLink.
- At the end of 2019 Orange Bank had over 500,000 customers,
including 390,000 account holders in France, and launched the offer
in Spain.
In line with its environmental commitments, in
2019 Orange reduced its CO2 emissions by 5.4% in absolute terms
compared to 2018, despite the growth in usage over its
networks.
Outlook for 2020
Orange confirms its objectives for 2020, as
announced at the Investor Day on 4 December 2019:
- EBITDAaL for 2020 will be “flat positive”.
- 2020 eCAPEX, which includes the impact of network sharing
agreements in Spain and Belgium, will be 200 million euros
higher.
- Organic Cash Flow for telecoms activities in 2020 will be more
than 2.3 billion euros, an improvement on the target announced at
the Investor Day in December.
- The ambition to achieve additional net savings of 1 billion
euros by 2023 on a defined indirect cost base of 14 billion euros
in 2019 now becomes a committment.
- The target ratio of net debt to EBITDAaL for telecoms
activities will be maintained at around 2x in the medium term.
- The payment of a dividend of 0.70 euros per share for the full
year 2020 will be proposed, with an interim dividend of 0.30 euros
per share to be paid in December 2020.
- Over the 2021-2023 period Orange will pay an annual dividend of
at least 0.70 euros per share, without excluding the possiblityof
an increase depending on Organic Cash Flow performance.
Commenting on the publication of these results,
Stéphane Richard, Chairman and CEO of the Orange Group, said:
"In view of the highly competitive market context, 2019 was a
successful year for Orange. We delivered revenue and EBITDAaL
growth that accelerated in the 4th quarter. The Essentials2020 plan
has been achieved confirming the validity of our strategy, which
was rooted in the superiority of our networks, the richness of our
services and the quality of our customer care.
This year we reached a level of 40 million households
connectable to very high-speed broadbrand networks and are the
undisputed fibre leader in Europe. We were named "Best Mobile
Network” for the 9th consecutive year in France and now provide 4G
in 15 of our Africa & Middle East countries. Finally, we
successfully launched 5G in Romania, setting the scene for upcoming
roll-outs in Europe.
This network leadership allowed us to continue our excellent
commercial performance. Our convergent offers total 10.8 million
customers (+3.4%), which confirms our number 1 position in Europe.
We also increased our fibre customer base by 23% to 7.8 million,
driven by net sales in France and Spain.
I'd like to highlight that once again this year Africa &
Middle East is one of the main growth drivers for the Group. We now
have nearly 24 million 4G customers (+43%) and 18.2 million active
Orange Money customers (+20%).
In 2019 Orange also asserted its ambitions in cybersecurity,
becoming a European leader thanks to the acquisitions of SecureData
and SecureLink, thereby also strengthening the global network
leadership position of Orange Business Services.
Last but not least, Orange reduced its CO2 emissions by 5.4%
compared to the previous year at the same time as digital usage
exploded on our networks. Orange is well placed to deliver its
environmental commitments for the period to 2025.
Further strengthened by these positive results and thanks to
carefully managed investments and improved operational efficiency,
we are improving our guidance for Organic Cashflow for 2020. This
will be the first year of our new Engage 2025 plan which, guided by
our Purpose, will allow us to meet the formidable challenges ahead
while delivering sustainable growth."
Key figures
Data at December 31
In millions of euros |
|
12M 2019 |
12M 2018comparablebasis |
12M 2018historicalbasis |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
42,238 |
41,986 |
41,381 |
0.6% |
2.1% |
France |
|
18,154 |
18,204 |
18,211 |
(0.3)% |
(0.3)% |
Spain |
|
5,280 |
5,360 |
5,349 |
(1.5)% |
(1.3)% |
Europe |
|
5,783 |
5,701 |
5,687 |
1.4% |
1.7% |
Africa & Middle-East |
|
5,646 |
5,314 |
5,190 |
6.2% |
8.8% |
Enterprise |
|
7,820 |
7,745 |
7,292 |
1.0% |
7.2% |
International Carriers & Shared Services |
|
1,498 |
1,584 |
1,534 |
(5.4)% |
(2.3)% |
Intra-Group eliminations |
|
(1,942) |
(1,922) |
(1,882) |
|
|
EBITDAaL (1) |
|
12,860 |
12,762 |
na |
0.8% |
na |
o/w
telecom activities |
|
13,019 |
12,907 |
na |
0.9% |
na |
As % of revenues |
|
30.8% |
30.7% |
na |
0.1
pt |
na |
France |
|
7,135 |
7,130 |
na |
0.1% |
na |
Spain |
|
1,646 |
1,642 |
na |
0.3% |
na |
Europe |
|
1,492 |
1,443 |
na |
3.4% |
na |
Africa & Middle-East |
|
1,815 |
1,659 |
na |
9.4% |
na |
Enterprise |
|
1,191 |
1,212 |
na |
(1.7)% |
na |
International Carriers & Shared Services |
|
(261) |
(178) |
na |
(46.3)% |
na |
o/w
Orange Bank |
|
(160) |
(147) |
na |
(8.5)% |
na |
Operating Income |
|
5,927 |
|
4,829 |
|
22.7% |
o/w
telecom activities |
|
6,112 |
|
4,997 |
|
22.3% |
o/w Orange Bank |
|
(186) |
|
(169) |
|
(9.8)% |
Consolidated net income |
|
3,226 |
|
2,158 |
|
49.4% |
Net income attributable to equity owners of the Group |
|
3,006 |
|
1,954 |
|
53.8% |
eCAPEX |
|
7,293 |
7,248 |
na |
0.6% |
na |
o/w
telecom activities |
|
7,265 |
7,212 |
na |
0.7% |
na |
as % of revenues |
|
17.2% |
17.2% |
na |
0.0
pt |
na |
o/w Orange Bank |
|
28 |
36 |
na |
(23.4)% |
na |
Operating cash-flow (EBITDAaL - eCAPEX) |
|
5,568 |
5,513 |
na |
1.0% |
na |
(1) Adjustments to the presentation of
EBITDAaL are described in Appendix 2.
In millions of euros |
|
December 312019 |
December 312018 |
Organic Cash Flow from telecoms activities |
|
2,345 |
2,490 |
Net financial debt (1) |
|
25,466 |
25,441 |
Ratio of
financial debt / Adjusted EBITDA from telecom activities (2) |
|
na |
1.93 |
Ratio of financial debt / EBITDAaL from telecom activities
(3) |
|
1.96 |
na |
(1) Net financial debt as defined and used by Orange does not
take into account the activities of Orange Bank, for which this
concept is not relevant.
(2) The ratio of net financial debt to adjusted EBITDA from
telecom activities is calculated on the basis of the Group's net
financial debt to adjusted EBITDA from telecom activities over the
previous 12 months.
(3) The ratio of net financial debt to EBITDAaL from telecom
activities is calculated on the basis of the Group's net financial
debt to EBITDAaL from telecom activities calculated over the
previous 12 months.
Quarterly data
In millions of euros |
|
4Q 2019 |
4Q 2018comparablebasis |
4Q 2018historicalbasis |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
11,088 |
10,965 |
10,811 |
1.1% |
2.6% |
France |
|
4,731 |
4,679 |
4,687 |
1.1% |
0.9% |
Spain |
|
1,346 |
1,377 |
1,375 |
(2.3)% |
(2.1)% |
Europe |
|
1,548 |
1,522 |
1,502 |
1.7% |
3.1% |
Africa & Middle-East |
|
1,461 |
1,377 |
1,355 |
6.1% |
7.8% |
Enterprise |
|
2,104 |
2,087 |
1,977 |
0.8% |
6.4% |
International Carriers & Shared Services |
|
377 |
416 |
401 |
(9.3)% |
(6.1)% |
Intra-Group eliminations |
|
(479) |
(492) |
(487) |
|
|
EBITDAaL (1) |
|
3,288 |
3,245 |
na |
1.3% |
na |
o/w
telecom activities |
|
3,332 |
3,300 |
na |
1.0% |
na |
As % of revenues |
|
30.0% |
30.1% |
na |
(0.0
pt) |
na |
o/w
Orange Bank |
|
(45) |
(56) |
na |
20.0% |
na |
eCAPEX |
|
2,059 |
2,215 |
na |
(7.0)% |
na |
o/w
telecom activities |
|
2,054 |
2,209 |
na |
(7.0)% |
na |
as % of revenues |
|
18.5% |
20.1% |
na |
(1.6
pt) |
na |
o/w Orange Bank |
|
5 |
6 |
na |
(14.4)% |
na |
Operating Cash-Flow (EBITDAaL - eCAPEX) |
|
1,228 |
1,030 |
na |
19.3% |
na |
(1) Adjustments to the presentation of
EBITDAaL are described in Appendix 2.
The Group adopted IFRS 16
"Leases" on January 1, 2019, according to the simplified
retrospective approach, without restatement of prior period
comparatives. The income statement and the presentation of
segmented information were amended accordingly (depreciation of
recognized right-of-use assets and interest expense relating to
lease liabilities instead of operating lease expenses with, in
particular, increased expenses from the interest component).
At the same time, the
adoption of IFRS 16 led the Group to adapt its financial indicators
with, since January 1, 2019, EBITDAaL (EBITDA after Leases), eCAPEX
(Economic CAPEX) and the adaptation of Operating Cash flow
(EBITDAaL less eCAPEX). See Appendix 4 Glossary.
2019 figures and 2018
figures on a comparable basis are presented according to the IFRS
16 accounting standard. 2018 historical figures are presented
according to the IAS 17 accounting standard.
The Board of Directors of Orange SA met on
February 12, 2020 and reviewed the consolidated financial
statements at December 31, 2019.
The Group's statutory auditors performed their
audit procedures on those financial statements and the audit
reports relating to their certification are in the process of being
issued.
More detailed information on the Group's
financial statements and performance indicators is available on the
Orange website in the "Investors/Results and Presentations"
section:
www.orange.com
Comments on key Group figures2
Revenues
Orange Group revenues reached
42.2 billion euros in 2019, up 0.6%. Restated for the impact of
digital content offers, revenues rose 0.8% in 2019. This momentum
was driven by very strong growth in Africa & Middle East, and
good performances by Enterprise and Europe, which together more
than compensated for a slight reduction in France and a decline in
Spain.
The main services delivered the following
performances in 2019:
Revenues from Convergence –
marketed in all European countries – were 7.1 billion euros in
2019, up 3.9%. This enabled Orange to consolidate its position as
the leading convergent operator in Europe.
Revenues from mobile only services
(10.5 billion euros) rose 0.9% year on year, thanks to the strong
performance in Africa & Middle East.
Revenues from fixed only services
(9.5 billion euros) declined 2.9% year on year as a result of the
migration of customers to convergent services and the declining
trend in fixed narrowband services.
Revenues from IT and integration
services (3.0 billion euros) grew 7.1% in 2019. This was
driven by cybersecurity and cloud services in the Enterprise
segment, as well as by the Enterprise market in Poland.
Revenues from services to carriers
were 7.9 billion euros, a very slight decrease of 0.1% in 2019.
Growth in wholesale fixed services, notably revenues related to the
construction of Public Initiative Networks (PIN) in France, was not
fully offset by the decline in services to international
carriers.
Revenues from equipment sales (3.1
billion euros) was 3.1% lower, impacted by a slowing market.
Customer base growth
There were 10.8 million convergent
customers, up 3.4%, thanks to very strong growth in
Europe.
There were 207.2 million mobile
customers, an increase of 3.0%, driven by Africa &
Middle East.
Fixed broadband customers totaled
20.7 million, up 2.7%, reflecting the acceleration of FTTH (Fibre
to the Home) network deployment, notably in France.
EBITDAaL
Group EBITDAaL was 12.9 billion euros in 2019,
an increase of 0.8% in the year and 1.3% in the fourth quarter, an
acceleration of 0.2% on the previous quarter. Excluding the impact
of digital content offers l'EBITDAaL grew 1.5% in 2019.
EBITDAaL from telecom activities was 13.0
billion euros in 2019, up 0.9%, driven by strong growth in Africa
& Middle East (9.4%) and Europe (3.4%). EBITDAaL from telecom
activities accounted for 30.8% of revenues in 2019, up 0.1
percentage points.
Operating income
Group operating income was 5,927 million euros compared to 4,829
million euros in 2018 on a historical basis, an increase of 22.7%
or 1,098 million euros.
This increase is mainly due to the counter-effect of the charge
recorded in 2018 for the new “part-time for seniors” plan and by
the improvement in EBITDAaL.
Net income
Group net income was 3,226 million euros compared to 2,158
million euros in 2018 on a historical basis. The increase is linked
to the growth in operating income and financial income (due in
particular to the improvement in the cost of gross financial
endebtedness), partially offset by the increase in the corporate
tax charge.
eCAPEX
Group eCAPEX increased 0.6% in
2019 and was 7.0% lower in the fourth quarter, a sharp decline from
the 4.0% increase over the first nine months of the year. This
decline occurred in a context of accelerating fiber deployment in
France.
At December 31, 2019, the Group had 39.5 million
households connectable to very high-speed fixed broadband, a growth
of 38.0% in France, 7.8% in Spain, and 24.6% in Poland year on
year. The Group also continued to further strengthen its mobile
network, with more than 99% 4G population coverage in France,
Belgium and Poland, at least 95% in other European countries and 4G
coverage across 15 countries in Africa & Middle East at
December 31, 2019.
Organic Cash Flow from telecoms activities
In 2019, Organic Cash Flow for
Group telecom activities reached 2.3 billion euros, in line with
guidance. This represents a decrease of 145 million euros on a
historical basis compared to 2018 which notably includes an
increase in the corporate tax disbursement.
Changes in asset portfolio
In July 2019, Orange announced the disposal of its
residual interest in BT Group plc for a net amount of 543 million
euros.
In addition, following the acquisition of
SecureData in January 2019, Orange finalized the acquisition of
SecureLink in July, thus enabling the Group to position itself as a
European leader in cybersecurity.
Finally, in November 2019, Orange divested its
subsidiary Orange Niger as a result of the unfavorable market
environment.
Dividend
In respect of the 2019 financial year, the Annual General
Meeting of shareholders of 19 May 2020 will vote on the payment of
a dividend of 0.70 euros per share. Taking account of the interim
dividend of 0.30 euros per share paid on 4 December 2019, the
balance of 0.40 euros per share will be paid to shareholders,
subject to the approval of the Annual General Meeting, on June 4,
2020 with the ex-dividend date being June 2, 2020 and the record
date being June 3, 2020.
In respect of the 2020 financial year, the payment of a dividend
of 0.70 euros per share will be proposed to the Annual General
Meeting of shareholders in 2021, and an interim dividend of 0.30
euros per share will be paid in December 2020.
Non-financial performance
In 2019, Orange reduced its CO2 emissions by 5.4% compared to
2018 despite the growth in usage over its networks.
Orange is therefore well on the path to meeting the commitment
made in its Engage 2025 plan to reduce its CO2 emissions by 30% by
2025 compared to 2015. These results have been achieved thanks to
the Group's continuous efforts to improve its energy efficiency, in
particular on its network and its information system which are the
source of 82% of its emissions.
In terms of waste management, Orange is continuing its efforts
to improve mobile handset collection, which, for the first time,
reached the equivalent of 30% of handsets sold in France in the 4th
quarter of 2019.
With regard to its commitments on digital inclusion, Orange
opened two Digital Centers (ODC) in 2019, in Tunisia and then in
Senegal. The ODCs, which offer a support system for digital
training and support for digital entrepreneurship, have as their
mission the consolidation of Orange's position as a player of
reference in the digital transformation of the countries where it
is present.
Review by operating segment3
France
In millions of euros |
|
4Q 2019 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2019 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
4,731 |
1.1% |
0.9% |
|
18,154 |
(0.3)% |
(0.3)% |
Retail
services |
|
2,730 |
(0.2)% |
(0.2)% |
|
10,807 |
(1.6)% |
(1.5)% |
Convergence |
|
1,142 |
5.6% |
0.6% |
|
4,397 |
3.9% |
(1.4)% |
Mobile Only |
|
571 |
(4.6)% |
(1.2)% |
|
2,324 |
(4.3)% |
(1.0)% |
Fixed Only |
|
1,017 |
(3.8)% |
(0.4)% |
|
4,086 |
(5.4)% |
(2.0)% |
Wholesale |
|
1,422 |
4. % |
3.6% |
|
5,487 |
2.9% |
2.7% |
Equipment
sales |
|
439 |
(2.6)% |
(2.6)% |
|
1,351 |
(4.2)% |
(4.2)% |
Other revenues |
|
141 |
11.8% |
8.5% |
|
509 |
5.7% |
4.8 % |
EBITDAaL |
|
|
|
|
|
7,135 |
0.1% |
na |
EBITDAaL
/ Revenues |
|
|
|
|
|
39.3% |
0.1
pt |
na |
Operating Income |
|
|
|
|
|
3,892 |
- |
21.7% |
eCAPEX |
|
|
|
|
|
4,052 |
10.9% |
na |
eCAPEX / Revenues |
|
|
|
|
|
22.3% |
2.2 pt |
na |
In France, a good commercial performance in
both mobile and fixed broadband with fiber hitting a historic
high.
France revenues declined slightly,
down 0.3% in 2019 but recovered in the fourth quarter with growth
of 1.1%. Restated for the impact of digital content offers, France
revenues rose 0.2% in 2019.
Revenue from retail services was
down 1.6% in 2019, but improved in the fourth quarter with a slight
decrease of 0.2%, compared to a 2.0% decline in the previous
quarter. In 2019, convergent revenues grew 3.9%,
driven by the success of the Group's convergent strategy with 0.2
points of growth in the consumer broadband convergence rate.
Mobile only revenues declined 4.3% and
fixed only revenues declined 5.4% in 2019,
impacted by migrations to convergent offers and the ongoing
reduction in narrowband services.
When restated for the effect of digital content
offers, in order to assess better the underlying performance, and
for the decline in revenues from traditional fixed line (PSTN)
revenues, retail services revenues rose 1.7% in the fourth quarter,
at a higher level than in the previous quarter (+1.5%). When
restated for the effect of digital content offers, in the fourth
quarter of 2019 convergent ARPO increased 1.1 euros year on year to
67.7 euros, mobile only ARPO increased 0.18 euros to 16.9 euros and
fixed broadband ARPO decreased slightly by 0.12 euros.
Revenues from wholesale continued
to grow, with growth of 2.9% in 2019 and 4.1% in the fourth
quarter, accelerating from the 3.3% in the previous quarter. This
momentum was driven by the leasing of FTTH lines, FTTH maintenance
and the construction of fiber networks in PIN areas, which offset
the decline in unbundling and national roaming.
Revenues from equipment sales were
down 4.2% in 2019 and 2.6% in the fourth quarter, an improvement on
the 4.0% decline in the previous quarter.
The good commercial performances
of the fourth quarter were supported in particular by the
mobile contract base, with a solid quarter of
47,000 net customer additions in a still aggressive market. The
commercial strategy focused on profusion is bearing fruit, with the
commercial success of Open multi-lines, with 81,000 net additions.
In the fourth quarter, mobile contract churn (excluding M2M) was
13.3%, down 0.5 points year on year thanks to the good performance
of the Sosh churn and convergence.
Fixed broadband registered 49,000
net additions in the fourth quarter, with 239,000 net additions for
fiber, a new all-time record. At December 31, 2019, Orange had 16.3
million connectable households and is the undisputed leader in
fiber in France with a total of 3.3 million customers. The premium
component of the fixed broadband customer base rose 0.7 percentage
points year on year.
The convergent customer base rose
2.5% to reach 5.8 million customers, representing 55% of the retail
customer base.
EBITDAaL for France grew 0.1% in 2019 to 7,135
million euros, a margin of 39.3%, up 0.1 points year on year.
France's eCAPEX reached 4,052 million euros in
2019, up 10.9% year on year. This increase in eCAPEX supported the
acceleration of fiber deployments with 4.5 million additional
connectable households in 2019 compared to 2.7 million additional
households in 2018.
Spain
In millions of euros |
|
4Q 2019 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2019 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
1,346 |
(2.3)% |
(2.1)% |
|
5,280 |
(1.5)% |
(1.3)% |
Retail
services |
|
938 |
(3.4)% |
(2.5)% |
|
3,760 |
(2.9)% |
(2.5)% |
Convergence |
|
525 |
(3.1)% |
(2.7)% |
|
2,092 |
(2.4)% |
(2.4)% |
Mobile Only |
|
284 |
(6.4)% |
(4.3)% |
|
1,161 |
(5.7)% |
(4.5)% |
Fixed Only |
|
127 |
1.0% |
1.0% |
|
501 |
1.0% |
1.0% |
IT & Integration services |
|
2 |
742.8% |
742.8% |
|
6 |
475.6% |
475.6% |
Wholesale |
|
241 |
5.6% |
5.7% |
|
901 |
11.9% |
11.2% |
Equipment sales |
|
167 |
(6.1)% |
(9.9)% |
|
620 |
(9.5)% |
(9.5)% |
EBITDAaL |
|
|
|
|
|
1,646 |
0.3% |
na |
EBITDAaL
/ Revenues |
|
|
|
|
|
31.2% |
0.5
pt |
na |
Operating Income |
|
|
|
|
|
626 |
- |
12.7% |
eCAPEX |
|
|
|
|
|
812 |
(24.0)% |
na |
eCAPEX / Revenues |
|
|
|
|
|
15.4% |
(4.6 pt) |
na |
Spain preserved value and operational
efficiency in an environment marked by a shift in the market
towards low cost.
Spain's revenues fell 1.5% in 2019
and 2.3% in the fourth quarter, in the context of a market moving
towards the low-cost segment.
Retail services revenues were
particularly impacted by this bearish environment, declining 2.9%
in 2019. Convergent and mobile only revenues decreased 2.4% and
5.7% respectively, while fixed only revenues grew 1.0% in 2019.
Revenue from equipment sales also
followed this market trend and declined 9.5% in 2019 and 6.1% in
the fourth quarter, an improvement compared to the 12.7% decline in
the previous quarter.
Wholesale revenues continued to
grow, rising 11.9% in 2019 and 5.6% in the fourth quarter.
In this context, Spain's objective is to preserve
value more than volumes and to increase its operational
efficiency.
In line with the objective of preserving the
customer base value, Spain's convergent ARPO
increased 1.2 euros since the end of the third quarter of 2019 to
59.1 euros in the fourth quarter 2019. Net
additions in the fourth quarter fell by 25,000 for fixed
broadband and 51,000 for mobile contracts (excluding M2M).
In line with the cost efficiency objectives, and
thanks in particular to digitalization efforts in distribution and
customer support, Spain's EBITDAaL margin
increased from 30.6% at the end of 2018 to 31.2% at the end of
2019, an increase of 0.5 percentage points year on year.
EBITDAaL was 1,646 million euro in 2019, up
0.3%.
The eCAPEX level decreased 24.0%
in 2019, due primarily to a deceleration in the pace of FTTH
deployment with a connectable customer base of 14.9 million lines,
and secondly to the disposal of just over 1,000 non-strategic
mobile sites.
Europe
In millions of euros |
|
4Q 2019 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2019 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
1,548 |
1.7% |
3.1% |
|
5,783 |
1.4% |
1.7% |
Retail
services |
|
942 |
2.4% |
4.6% |
|
3,641 |
2.9% |
3.6% |
Convergence |
|
170 |
28.5% |
28.7% |
|
623 |
34.0% |
33.3% |
Mobile Only |
|
531 |
(2.2)% |
(2.1)% |
|
2,143 |
(2.1)% |
(2.3)% |
Fixed Only |
|
157 |
(8.0)% |
(7.4)% |
|
644 |
(7.2)% |
(7.7)% |
IT & Integration services |
|
84 |
13.4% |
50.1% |
|
232 |
20.3% |
47.4% |
Wholesale |
|
269 |
(7.5)% |
(7.3)% |
|
1,071 |
(6.5)% |
(6.9)% |
Equipment
sales |
|
292 |
10.8% |
10.9% |
|
898 |
3.8% |
3.5% |
Other revenues |
|
45 |
(4.9)% |
(6.7)% |
|
173 |
14.5% |
11.9% |
EBITDAaL |
|
|
|
|
|
1,492 |
3.4% |
na |
EBITDAaL
/ Revenues |
|
|
|
|
|
25.8% |
0.5
pt |
na |
Operating Income |
|
|
|
|
|
382 |
- |
12.6% |
eCAPEX |
|
|
|
|
|
869 |
(1.7)% |
na |
eCAPEX / Revenues |
|
|
|
|
|
15.0% |
(0.5 pt) |
na |
Revenue growth and improved profitability
in Europe.
Revenues for Europe (consisting of
Belgium, Luxembourg, Moldova, Poland, Romania and Slovakia) rose
1.4% in 2019 and 1.7% in the fourth quarter, an acceleration
compared to the 1.4% of the previous quarter. This increase is due
to solid growth in retail services, but was still impacted by a
decline in wholesale services.
Retail services revenues grew 2.9%
in 2019, an acceleration compared to the 1.7% of 2018.
In this segment, revenues from
convergent offers continued to grow strongly, up
34.0% in 2019 and 28.5% in the fourth quarter.
Mobile only revenues declined 2.1%
in 2019 and 2.2% in the fourth quarter, affected in particular by
migrations towards convergence offers which now account for 19% of
net mobile contract additions. The mobile contract base, excluding
M2M, recorded 101,000 net additions in the fourth quarter, a better
performance than the third quarter (86,000).
Fixed only
revenues declined 7.2% in 2019 and 8.0% in the fourth quarter.
Nevertheless, the foundations for broadband growth were established
with the FTTH customer base up 35.7% in 2019 to 761,000
customers.
Revenues from IT and integration
services continued to increase strongly, up 20.3% in 2019 and 13.4%
in the fourth quarter, essentially due to Poland.
Wholesale revenues decreased 6.5%
in 2019 and 7.5% in the fourth quarter, with the decline due mainly
to the loss in 2018 of an MVNO contract in Belgium.
At the European country level,
Poland reported the sixth consecutive quarter of revenue
growth (up 2.1% in 2019). In addition to the success of
convergence, growth in Poland was also driven by better equipment
sales, growth in other revenues (energy offers) and the stronger
performance of IT and integration services.
Revenue growth in Belgium and
Luxembourg was 3.3% in 2019 and 4.8% in the fourth
quarter, accelerating from 2.5% in the third quarter and 2.8% in
the first half of the year. This momentum was the result of the
acceleration in net mobile contract additions and convergence.
The countries of Central Europe
had a revenue decline of 0.7% in 2019 but with growth of 0.5% in
the fourth quarter, an improvement on the 0.9% decrease recorded in
the previous quarter.
EBITDAaL in Europe increased 3.4%
in 2019, a slight acceleration compared to the 3.3% increase in
adjusted EBITDA in 2018. This improvement is explained by the
positive trend in revenues and a limited increase in operating
expenses.
Africa & Middle East
In millions of euros |
|
4Q 2019 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2019 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
1,461 |
6.1% |
7.8% |
|
5,646 |
6.2% |
8.8% |
Retail
services |
|
1,229 |
8.5% |
10.0% |
|
4,738 |
8.6% |
11.1% |
Mobile Only |
|
1,098 |
9.7% |
11.2% |
|
4,230 |
8.6% |
11.1% |
Fixed Only |
|
127 |
6.4% |
8.6% |
|
493 |
10.3% |
13.5% |
IT & Integration services |
|
4 |
(69.5)% |
(69.5)% |
|
14 |
(33.0)% |
(32.8)% |
Wholesale |
|
191 |
(8.0)% |
(6.2)% |
|
780 |
(6.4)% |
(3.8)% |
Equipment
sales |
|
29 |
2.6% |
7.5% |
|
96 |
8.9% |
13.6% |
Other revenues |
|
12 |
59.9% |
58.5% |
|
32 |
5.5% |
7.4% |
EBITDAaL |
|
|
|
|
|
1,815 |
9.4% |
na |
EBITDAaL
/ Revenues |
|
|
|
|
|
32.2% |
0.9
pt |
na |
Operating Income |
|
|
|
|
|
939 |
- |
42.5% |
eCAPEX |
|
|
|
|
|
987 |
(2.0)% |
na |
eCAPEX / Revenues |
|
|
|
|
|
17.5% |
(1.5 pt) |
na |
Continued strong growth in Africa &
Middle East underpinned by a solid performance in retail
services.
Africa & Middle East, which was the strongest
contributor to the Group's growth in 2019, had revenue
growth of 6.2% in 2019 and 6.1% in the fourth quarter.
This performance is mainly due to the sustained increase in
retail services, which rose 8.6% in 2019.
This momentum primarily stems from the continued
growth in mobile only services, up 8.6% in 2019
and 9.7% in the fourth quarter thanks to the excellent performance
of the growth drivers 4G and Orange Money. Africa & Middle East
now has 23.8 million 4G customers - an increase of 42.6% year on
year. For its part, the active Orange Money customer base reached
18.2 million4, up 20.1% year on year. The countries of Africa &
Middle East have a combined 122 million mobile customers, a 3.3%
increase year on year. The composition of the prepaid mobile
customer base improved, with churn down 4.5 percentage points
compared with the fourth quarter of 2018.
Revenue growth was also driven by momentum in
fixed only services, which grew 10.3% in 2019 and
6.4% in the fourth quarter, thanks in particular to broadband
services which now number 1.2 million customers, up 20.7% year on
year.
Wholesale revenues decreased by
6.4% in 2019 and 8.0% in the fourth quarter, principally due to the
decline in volumes from direct international incoming traffic.
This strong growth was driven by all countries in
the region (with the exception of Jordan) with seven of the
countries delivering double-digit growth in 2019.
EBITDAaL in Africa & Middle
East grew 9.4%, more than the growth in revenues, with a margin of
32.2%, up 0.9 percentage points year on year, due to efforts to
control costs.
Enterprise
In millions of euros |
|
4Q 2019 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2019 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
2,104 |
0.8% |
6.4% |
|
7,820 |
1.0% |
7.2% |
Fixed
Only |
|
1,007 |
(0.9)% |
(0.1)% |
|
3,963 |
(1.7)% |
(0.8)% |
Voice |
|
325 |
(5.7)% |
(5.8)% |
|
1,289 |
(6.8)% |
(7.0)% |
Data |
|
682 |
1.6% |
2.9% |
|
2,674 |
1.0% |
2.4% |
IT &
Integration services |
|
846 |
5.3% |
20.5% |
|
2,909 |
6.5% |
25.8% |
Mobile
* |
|
251 |
(6.0)% |
(6.0)% |
|
949 |
(3.6)% |
(3.5)% |
Mobile Only |
|
186 |
(3.8)% |
(3.8)% |
|
727 |
(2.1)% |
(2.1)% |
Wholesale |
|
8 |
(20.4)% |
(20.4)% |
|
34 |
(3.9)% |
(3.9)% |
Equipment sales |
|
58 |
(10.3)% |
(10.3)% |
|
187 |
(8.7)% |
(8.7)% |
EBITDAaL |
|
|
|
|
|
1,191 |
(1.7)% |
na |
EBITDAaL
/ Revenues |
|
|
|
|
|
15.2% |
(0.4
pt) |
na |
Operating Income |
|
|
|
|
|
772 |
- |
0.9% |
eCAPEX |
|
|
|
|
|
404 |
10.3% |
na |
eCAPEX / Revenues |
|
|
|
|
|
5.2% |
0.4 pt |
na |
Revenue growth for the fifth consecutive
quarter.
Enterprise sector revenues increased 1.0% in 2019
and 0.8% in the fourth quarter, delivering the fifth consecutive
quarter of growth and the first year of growth since 2016 driven by
IT and integration service.
Revenues from IT and integration
services rose strongly, up 6.5% in 2019, an acceleration
compared to the 4.8% increase in 2018 and the 2.6% growth of 2017.
This momentum illustrates the strong performance of both
cybersecurity and cloud activities, whose organic growth, excluding
acquisitions, was 24% and 19% respectively for the year.
The slowdown in the decline in fixed
services, which fell 1.7% in 2019 compared to a 2.4%
decline in 2018 and 3.5% in 2017, can be explained by good momentum
in data. Data grew 1.0% in 2019 and 1.6% in the
fourth quarter. This increase was driven by the expansion of WAN
offers in France, supported by the penetration of fiber among our
Enterprise customers.
The performance of IT and integration services and
resilience of data during the year more than offset the 3.6%
decline in Mobile and 6.8% decrease in
Voice revenues.
EBITDAaL decreased 1.7% in 2019
and the EBITDAaL margin reached 15.2%. This
decline is explained by changes in the Enterprise product mix and
in particular the growing proportion of IT and integration services
in revenues. We confirm our ambition to return Enterprise to
EBITDAaL growth by the end of 2021.
The eCAPEX for the segment rose
10.3% in 2019, due mainly to the increase in customer eCAPEX linked
to large-scale deployments for key accounts.
* Mobile revenues include mobile services and
mobile equipment sales invoiced to businesses and incoming mobile
traffic from businesses invoiced to other carriers.
** Organic growth does not take into account the
revenue from acquisitions made over the past 12 months. Note that
the calculation of data on a comparable basis minimizes cloud and
cybersecurity growth over the first nine months of the year because
it takes into account revenue from new acquisitions but considers
that their growth was zero over the period.
International Carriers & Shared
Services
In millions of euros |
|
4Q 2019 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2019 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
377 |
(9.3)% |
(6.1)% |
|
1,498 |
(5.4)% |
(2.3)% |
Wholesale |
|
266 |
(13.8)% |
(9.6)% |
|
1,077 |
(10.6)% |
(6.3)% |
Other revenues |
|
111 |
3.6% |
3.3% |
|
421 |
11.0% |
9.6% |
EBITDAaL |
|
|
|
|
|
(261) |
(46.3)% |
na |
EBITDAaL
/ Revenues |
|
|
|
|
|
(17.4)% |
(6.1
pt) |
na |
Operating Income |
|
|
|
|
|
(499) |
- |
4.1% |
eCAPEX |
|
|
|
|
|
141 |
(39.3)% |
na |
eCAPEX / Revenues |
|
|
|
|
|
9.4% |
(5.3 pt) |
na |
Revenues from International Carriers and
Shared Services declined 5.4% in 2019 with the decline in
services to international carriers.
At the same time, Other Revenues continued to grow,
increasing 11.0% in 2019. Other revenues consist mainly of the
laying and maintenance of submarine cables, content (OCS and Orange
Studio), consulting (Sofrecom) and secure-TV access (Viaccess).
Orange Bank
In millions of euros |
|
|
12M 2019 |
changecomparablebasis |
changehistoricalbasis |
Net Banking Income (NBI) |
|
|
40 |
(6.3)% |
(6.3)% |
Cost of banking credit risk |
|
|
(10) |
(41.7)% |
(41.7)% |
Operating income |
|
|
(186) |
na |
(9.8)% |
eCAPEX |
|
|
28 |
(23.4)% |
na |
At December 31, 2019, Orange Bank had 390,000
account holders in France and a total of more than 500,000
customers, 29% of whom have consumer loans. The fourth quarter was
marked by the launch of the offer in Spain and mobile handset
financing due to synergies with the telecom activities.
Net Banking Income was down 6.3% despite the NBI
growth of the Orange Bank offer in France, due to the revaluation
of securities portfolios.
Operating income (loss) was down 9.8% on a
historical basis, principally as a result of charges related to the
launch of the Orange Bank offer in Spain
Schedule of upcoming events
30 April 2020: Q1 2020 results
Contacts
press: +33 1 44 44 93 93 Jean-Bernard Orsoni
jeanbernard.orsoni@orange.com Tom Wright tom.wright@orange.com
Olivier Emberger olivier.emberger@orange.com |
financial communication: +33 1 44 44 04 32 (analysts and investors)
Patrice Lambert-de Diesbach p.lambert@orange.com Isabelle
Casadoisabelle.casado@orange.com Samuel
Castelosamuel.castelo@orange.com Didier Kohn didier.kohn@orange.com
Aurélia Roussel aurelia.roussel@orange.com Andrei Dragolici
andrei.dragolici@orange.com |
Disclaimer
This press release may contain forward-looking statements about
Orange, notably on objectives and trends related to Orange’s
financial situation, investments, results of operations, business
and strategy. Although we believe these statements are based on
reasonable assumptions, they are subject to numerous risks and
uncertainties, including matters not yet known to us or not
currently considered material by us, and there can be no assurance
that anticipated events will occur or that the objectives set out
will actually be achieved. More detailed information on the
potential risks that could affect our financial results is included
in the Registration Document filed on March 21, 2019 with the
French Financial Markets Authority (AMF) and in the annual report
(Form 20-F) filed on April 16, 2019 with the U.S. Securities and
Exchange Commission. Forward-looking statements speak only as of
the date they are made. Other than as required by law, Orange does
not undertake any obligation to update them in light of new
information or future developments.
Appendix 1: indicators used until 31 December 2018
(historical basis)
In millions of euros |
|
4Q
2018historicalbasis |
|
12M
2018historicalbasis |
|
Group |
|
|
|
|
|
Adjusted EBITDA |
|
3,334 |
|
13,005 |
|
o/w
telecom activities |
|
3,390 |
|
13,151 |
|
As % of
revenues |
|
31.4% |
|
31.8% |
|
France |
|
|
|
7,076 |
|
Spain |
|
|
|
1,700 |
|
Europe |
|
|
|
1,508 |
|
Africa & Middle-East |
|
|
|
1,667 |
|
Enterprise |
|
|
|
1,245 |
|
International Carriers & Shared Services |
|
|
|
(45) |
|
o/w
Orange Bank |
|
(56) |
|
(147) |
|
CAPEX (excluding licenses) |
|
2,301 |
|
7,442 |
|
o/w
telecom activities |
|
2,295 |
|
7,406 |
|
As % of
revenues |
|
21.2% |
|
17.9% |
|
o/w
Orange Bank |
|
6 |
|
36 |
|
Operating Cash-Flow (Adjusted EBITDA - CAPEX) |
|
1,033 |
|
5,563 |
|
France |
|
|
|
|
|
Adjusted
EBITDA |
|
na |
|
7,076 |
|
Adjusted
EBITDA / Revenues |
|
na |
|
38.9% |
|
CAPEX |
|
na |
|
3,656 |
|
CAPEX / Revenues |
|
na |
|
20.1% |
|
Spain |
|
|
|
|
|
Adjusted
EBITDA |
|
na |
|
1,700 |
|
Adjusted
EBITDA / Revenues |
|
na |
|
31.8% |
|
CAPEX |
|
na |
|
1,120 |
|
CAPEX / Revenues |
|
na |
|
20.9% |
|
Europe |
|
|
|
|
|
Adjusted
EBITDA |
|
na |
|
1,508 |
|
Adjusted
EBITDA / Revenues |
|
na |
|
26.5% |
|
CAPEX |
|
na |
|
953 |
|
CAPEX / Revenues |
|
na |
|
16.8% |
|
Middle East & Africa |
|
|
|
|
|
Adjusted
EBITDA |
|
na |
|
1,667 |
|
Adjusted
EBITDA / Revenues |
|
na |
|
32.1% |
|
CAPEX |
|
na |
|
1,008 |
|
CAPEX / Revenues |
|
na |
|
19.4% |
|
Enterprise |
|
|
|
|
|
Adjusted
EBITDA |
|
na |
|
1,245 |
|
Adjusted
EBITDA / Revenues |
|
na |
|
17.1% |
|
CAPEX |
|
na |
|
353 |
|
CAPEX / Revenues |
|
na |
|
4.8% |
|
International Carriers & Shared Services |
|
|
|
|
|
Adjusted
EBITDA |
|
na |
|
(45) |
|
Adjusted
EBITDA / Revenues |
|
na |
|
(3.0)% |
|
CAPEX |
|
na |
|
316 |
|
CAPEX / Revenues |
|
na |
|
20.5% |
|
Orange Bank |
|
|
|
|
|
CAPEX |
|
na |
|
36 |
|
Appendix 2: adjusted data to income statement
items
2019 data |
|
4th quarter |
|
December 31 |
In millions of euros |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
Revenues |
|
11,088 |
- |
11,088 |
|
42,238 |
- |
42,238 |
External
purchases |
|
(4,887) |
- |
(4,887) |
|
(17,897) |
- |
(17,897) |
Other
operating income |
|
195 |
- |
195 |
|
720 |
- |
720 |
Other
operating expense |
|
(249) |
(65) |
(313) |
|
(527) |
(72) |
(599) |
Labor
expenses |
|
(2,203) |
56 |
(2,147) |
|
(8,470) |
(24) |
(8,494) |
Operating
taxes and levies |
|
(294) |
- |
(294) |
|
(1,827) |
- |
(1,827) |
Gains
(losses) on disposal of fixed assets, investments and
activities |
|
- |
168 |
168 |
|
- |
277 |
277 |
Restructuring costs |
|
- |
(69) |
(69) |
|
- |
(132) |
(132) |
Depreciation and amortization of financed assets |
|
(6) |
- |
(6) |
|
(14) |
- |
(14) |
Depreciation and amortization of right-of-use assets |
|
(324) |
- |
(324) |
|
(1,239) |
- |
(1,239) |
Impairment of financed assets |
|
- |
- |
- |
|
- |
- |
- |
Impairment of right-of-use assets |
|
0 |
(9) |
(8) |
|
(0) |
(33) |
(33) |
Interests
expenses on liabilities related to financed assets |
|
(0) |
0 |
- |
|
(1) |
1 |
- |
Interests expenses on lease liabilities |
|
(31) |
31 |
- |
|
(122) |
122 |
- |
EBITDAaL |
|
3,288 |
114 |
- |
|
12,860 |
138 |
- |
Significant litigation |
|
6 |
(6) |
- |
|
(49) |
49 |
- |
Specific
labor expenses |
|
(6) |
6 |
- |
|
(23) |
23 |
- |
Fixed
assets, investments and business portfolio review |
|
168 |
(168) |
- |
|
277 |
(277) |
- |
Restructuring program costs |
|
(78) |
78 |
- |
|
(165) |
165 |
- |
Acquisition and integration costs |
|
(7) |
7 |
- |
|
(24) |
24 |
- |
Interests
expenses on liabilities related to financed assets |
|
- |
(0) |
(0) |
|
- |
(1) |
(1) |
Interests expenses on lease liabilities |
|
- |
(31) |
(31) |
|
- |
(122) |
(122) |
2018 historical data |
|
4th quarter |
|
December 31 |
In millions of euros |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
Revenues |
|
10,811 |
|
10,811 |
|
41,381 |
- |
41,381 |
External
purchases |
|
(5,087) |
- |
(5,087) |
|
(18,563) |
- |
(18,563) |
Other
operating income (1) |
|
245 |
- |
245 |
|
760 |
- |
760 |
Other
operating expense |
|
(228) |
- |
(228) |
|
(496) |
(9) |
(505) |
Labor
expenses |
|
(2,112) |
(693) |
(2,805) |
|
(8,268) |
(806) |
(9,074) |
Operating
taxes and levies |
|
(294) |
(0) |
(294) |
|
(1,809) |
(31) |
(1,840) |
Gains
(losses) on disposal of fixed assets, investments and
activities |
|
- |
18 |
18 |
|
- |
17 |
17 |
Restructuring and integration costs |
|
- |
(122) |
(122) |
|
- |
(199) |
(199) |
Adjusted EBITDA |
|
3,334 |
(797) |
- |
|
13,005 |
(1,028) |
- |
Significant litigation |
|
5 |
(5) |
- |
|
(33) |
33 |
- |
Specific
labor expenses |
|
(697) |
697 |
- |
|
(812) |
812 |
- |
Review of
the investments and business portfolio |
|
18 |
(18) |
- |
|
17 |
(17) |
- |
Restructuring and integration costs |
|
(123) |
123 |
- |
|
(200) |
200 |
- |
Reported EBITDA |
|
2,537 |
|
2,537 |
|
11,977 |
|
11,977 |
(1) Including gains (losses) on disposal of fixed assets.
Appendix 3: key performance indicators
In thousand, at the end of the period |
|
December 312019 |
|
December 312018 |
Number of convergent customers |
|
10,762 |
|
10,412 |
Number of mobile services customers (excluding
MVNOs) |
|
207,211 |
|
201,148 |
o/w |
Customers with convergent offers |
|
19,154 |
|
18,187 |
|
Customers with mobile only offers |
|
188,057 |
|
182,960 |
o/w |
Contract customers |
|
74,205 |
|
70,783 |
|
Prepaid customers |
|
133,006 |
|
130,365 |
Number of fixed broadband services customers |
|
20,685 |
|
20,144 |
o/w |
Customers with very high-speed broadband access |
|
7,792 |
|
6,343 |
o/w |
Customers with convergent offers |
|
10,762 |
|
10,412 |
|
Customers with fixed only offers |
|
9,923 |
|
9,732 |
Number of fixed telephony customers |
|
37,809 |
|
40,199 |
Group total |
|
265,705 |
|
261,490 |
2018 data is on a comparable basis.
The key indicators by country are shown in the Investors section
of the Orange Group website, orange.com, in the document "Orange
Investors data book Q4 2019". This is directly accessible through
the following link:
www.orange.com/en/Investors/Results-and-presentations/Folder/All-consolidated-results
Appendix 4: glossary
Key figures
Data on a comparable basis: data based on comparable accounting
principles, scope of consolidation and exchange rates are presented
for previous periods. The transition from data on an historical
basis to data on a comparable basis consists of keeping the results
for the period ended and then restating the results for the
corresponding period of the preceding year for the purpose of
presenting, over comparable periods, financial data with comparable
accounting principles, scope of consolidation and exchange rate.
The method used is to apply to the data of the corresponding period
of the preceding year, the accounting principles and scope of
consolidation for the period just ended as well as the average
exchange rate used for the income statement for the period ended.
Changes in data on a comparable basis reflect organic business
changes. Data on a comparable basis is not a financial aggregate as
defined by IFRS and may not be comparable to similarly-named
indicators used by other companies.
EBITDAaL or “EBITDA after Leases” (from January 1, 2019):
operating income (i) before depreciation and amortization of fixed
assets, effects resulting from business combinations,
reclassification of cumulative translation adjustment from
liquidated entities, impairment of goodwill and fixed assets, share
of profits (losses) of associates and joint ventures, (ii) after
interest on debts related to financed assets and on lease
liabilities, and (iii) adjusted for significant litigation,
specific labor expenses, fixed assets, investments and businesses
portfolio review, restructuring programs costs, acquisition and
integration costs and, where appropriate, other specific elements.
EBITDAaL is not a financial aggregate as defined by IFRS standards
and may not be directly comparable to similarly-named indicators in
other companies.
eCAPEX or “economic CAPEX” (from January 1, 2019): (i)
acquisitions of property, plant and equipment and intangible
assets, excluding telecommunications licenses and financed assets,
(ii) less the price of disposal of property, plant and equipment
and intangible assets. eCAPEX is not a financial performance
indicator as defined by IFRS standards and may not be directly
comparable to indicators referenced by similarly-named indicators
in other companies.
Operating Cash Flow (EBITDAaL – eCAPEX from January 1, 2019):
EBITDAaL (see definition) less eCAPEX (see definition). Orange uses
this indicator to measure the performance of the Group in
generating cash from its operations. Operating Cash Flow is not a
financial aggregate defined by IFRS and may not be comparable to
similarly-named indicators used by other companies.
Organic Cash Flow (telecoms activities): for the perimeter of
the telecoms activities, this corresponds to the net cash generated
by the operating activities, minus (i) lease liabilities repayments
and debts related to financed assets repayments, and (ii) purchases
and sales of property, plant and equipment and intangible assets,
net of change in the fixed assets payables, (iii) excluding effect
of telecommunication licenses paid and significant principal
litigations paid or received. Operating Cash Flow from telecom
activities is not a financial aggregate defined by IFRS and may not
be comparable to similarly-named indicators used by other
companies.
Reported EBITDA (until December 31, 2018): operating income
before depreciation and amortisation, before impacts related to
acquisitions of controlling interests, before reversal of reserves
of liquidated entities, before impairment of goodwill and assets,
and before income from associates. Reported EBITDA is not a
financial aggregate as defined by IFRS standards and may not be
directly comparable to similarly-named indicators in other
companies.
Adjusted EBITDA (until December 31, 2018): reported EBITDA (see
definition), adjusted for the impacts of key disputes, specific
personnel expenses, the review of the portfolio of shares and
operations, restructuring and consolidation costs, and, as
applicable, other specific and systematically identified items.
Adjusted EBITDA is not a financial aggregate as defined by IFRS
standards and may not be directly comparable to similarly-named
indicators in other companies.
CAPEX (until December 31, 2018): capital expenditure on tangible
and intangible assets excluding telecommunication licenses and
investments through finance leases. CAPEX is not a financial
performance indicator as defined by IFRS standards and may not be
directly comparable to indicators referenced by similarly-named
indicators in other companies.
Operating Cash Flow (Adjusted EBITDA – CAPEX until December 31,
2018): Adjusted EBITDA less CAPEX. Orange used this indicator to
measure the performance of the Group in generating cash from its
operations. Operating Cash Flow is not a financial aggregate
defined by IFRS and may not be comparable to similarly-named
indicators used by other companies.
Convergence
The customer base and the revenues invoiced to convergence
services customers (excluding equipment sales) was for convergent
offers defined as the combination of, at a minimum, a fixed
broadband access and a mobile contract subscribed by retail market
customers.
Convergent ARPO: the average quarterly revenues per convergent
offer (ARPO) is calculated by dividing revenues from retail
convergent services offers invoiced to customers generated over the
past three months (excluding IFRS 15 adjustments) by the weighted
average number of retail convergent offers over the same period.
ARPO is expressed by monthly revenues per convergent offer.
Mobile Only services
Revenues from Mobile Only services consists of revenues invoiced
to customers of mobile offers excluding retail convergence and
equipment sales. The customer base includes customers with a
contract excluding retail convergence, machine-to-machine contracts
and prepaid cards.
Mobile Only ARPO: the average quarterly revenues from Mobile
Only (ARPO) is calculated by dividing the revenue from Mobile Only
services (excluding machine-to-machine and IFRS 15 adjustments)
generated over the past three months by the weighted average of
Mobile Only customers (excluding machine-to-machine) over the same
period. The ARPO is expressed as monthly revenues per Mobile Only
customer.
Fixed Only services
Revenues from Fixed Only services include the revenue of fixed
services excluding retail convergence and equipment sales:
traditional fixed-line telephony, fixed broadband and enterprise
solutions and networks5. The customer base consists of fixed-line
telephony and fixed broadband customers, excluding retail
convergence customers.
Fixed Only Broadband ARPO: the average quarterly revenues from
Fixed Only Broadband (ARPO) is calculated by dividing the revenue
from Fixed Only Broadband services (excluding IFRS 15 adjustments)
generated over the past three months by the weighted average of
Fixed Only Broadband customers over the same period. ARPO is
expressed as monthly revenues per Fixed Only Broadband
customer.
IT & integration services
Revenues from IT and integration services include revenue from
unified communication and collaboration services (Local Area
Network and telephony, consulting, integration, project management
and video conferencing offers), hosting and infrastructure services
(including cloud computing), application services (customer
relations management and other application services), security
services, machine-to-machine services (excluding connectivity), as
well as equipment sales for the products and services above.
Wholesale
Revenues from other carriers consists of (i) mobile services to
other carriers including incoming traffic, visitor roaming, network
sharing, national roaming and Mobile Virtual Network Operators
(MVNOs), and (ii) fixed services to other carriers including
national networking, services to international carriers, high-speed
and very high-speed broadband access (fibre access, unbundling of
telephone lines and xDSL access sales) and the sale of telephone
lines on the wholesale market.
1 Unless otherwise stated, changes are on a comparable
basis.
2 Unless otherwise stated, changes are on a comparable
basis.
3 Unless otherwise stated, changes are on a comparable
basis.
4 Customers making at least one transaction per month.
5 With the exception of France, where enterprise solutions and
networks are listed under the Enterprise business segment.
- CP_Orange_FY2019_EN_130220
Orange (EU:ORA)
Gráfico Histórico do Ativo
De Fev 2024 até Mar 2024
Orange (EU:ORA)
Gráfico Histórico do Ativo
De Mar 2023 até Mar 2024