Press release Orange : Q1 2022 results - Revenue growth and
improved EBITDAaL margin
Press releaseParis, 26 April 2022
Financial information at 31 March 2022
Revenue growth and improved EBITDAaL
margin
- Retail services reap full benefits of
value strategy and improved customer experience
In millions of euros |
|
1Q 2022 |
1Q 2021comparablebasis |
1Q 2021historicalbasis |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
10,582 |
10,511 |
10,315 |
0.7 % |
2.6 % |
EBITDAaL |
|
2,620 |
2,595 |
2,565 |
1.0 % |
2.2 % |
eCAPEX (excluding licenses) |
|
1,610 |
1,708 |
1,760 |
(5.8)% |
(8.6)% |
EBITDAaL - eCAPEX |
|
1,011 |
887 |
805 |
13.9 % |
25.6 % |
- Revenues rose
0.7%1 in the first quarter, driven by Africa & Middle East
(+8.7%). Growth in retail services was well above the decline in
Wholesale services.
In France, the faster pace of retail services
growth has yet to offset the decline in Wholesale. Revenues fell
slightly, by 0.7%.
Revenues in Spain remained lower, by 4.6%, but
retail services continued to improve. The other European countries
were stable.
Revenues from Totem (for which this is the first
reporting quarter) and from Enterprise grew by 12.2% and 0.8%
respectively.
- EBITDAaL rose
1.0% in the first quarter, outpacing the rise in revenues; this
performance provides further comfort to the 2022 target of a 2.5%
to 3% increase since growth will accelerate at the end of the
year.
- eCAPEX fell by
5.8% in the first quarter.
From a commercial standpoint, the Group is
consolidating its leadership in convergence with 11.6 million
customers across Europe, on the one hand thanks to the continuous
improvement in customer satisfaction – notably reflected in the
reduced churn rate across Europe – and on the other hand to the
quality of its fiber network, to which more than half of the
Group’s fixed-line customers in France are now connected.
In a context of re-emerging inflation, the Group
is taking all corrective measures to confirm its financial
objectives for 2022, a milestone towards the achievement of its
2023 commitments2:
- EBITDAaL to
increase by 2.5% to 3%
- eCAPEX no
greater than 7.4 billion euros
- Organic cash
flow from telecoms activities of at least 2.9 billion
euros
- Net
debt/EBITDAaL ratio for telecoms activities unchanged at around 2x
in the medium term
- Maintained
dividend for 2022 at 70 euro cents including an interim
dividend of 30 euro cents in December 2022
Commenting on the publication of these results,
Christel Heydemann, Chief Executive Officer of the Orange Group,
said:
"Having taken on my role as CEO a few weeks ago,
it’s with pride and enthusiasm that I take on the challenges that
lie ahead and to continue to build Orange into a digital world
leader. In this first quarter, Orange has once again delivered a
solid performance with higher revenues, improved margins and the
confirmation that we're on track to achieve our 2022 targets in
spite of the particularly uncertain environment.
We continue to reap the benefits of our European
fiber and 5G network leadership with a 2% rise in our retail sales
growth in these first three months. We now have 11.6 million
convergent customers in Europe and over half of Orange's fixed
broadband customers in France are now fiber connected - a landmark
achievement on which we will continue to build.
Totem, our towerco subsidiary - whose numbers we’re
publishing for the first time - is a top-quality asset of great
value-creating potential. Meanwhile, Africa & Middle East
continues to be our main growth driver, again delivering a
remarkable performance, with most African countries producing
double-digit growth thanks to new telecoms services that are
off-setting the heightened competition for Orange Money.
Spain remains our most challenging market, and
we're pressing ahead with our stand-alone programmes aimed at
restoring growth. I'm also pleased to note our exclusive
discussions on combining our operations with those of Masmovil.
This operation would lead to the creation of a sustainable player
with the investment capacity, infrastructure and competitive edge
necessary for its future development and for the benefit of both
consumers and businesses in Spain.
In the B2B market, the transition to IT services
represents and profound evolution of the business that we are fully
committed to achieving.
These results are testament to a company with
extraordinary assets, not least our talented people all around the
world.
As the newly appointed CEO it’s with a sense of
determination and responsibility that I approach both our
challenges and our many opportunities. These results demonstrate
our ability to grow in a tough environment and also represent a
strong foundation not only for the rest of 2022, but also for the
longer term."
___________________________________________________________________________________
The Board of Directors of Orange SA met on 25
April 2022 to review the consolidated financial results as of 31
March 2022.
More detailed information on the Group’s
financial results and performance indicators is available on the
Orange website https://www.orange.com/en/consolidated-results.
Comments on Group key
figures
Revenues
Orange Group revenues totaled
10,582 million euros in the first quarter of 2022, a rise of
0.7% year on year (+71 million euros). Growth was driven by
retail services3, which rose by 2.0% (+149 million euros),
while wholesale services declined by 6.8% (-129 million
euros), notably due to the reduction in the regulated call
termination rate.
Africa & Middle East was once again the main
contributor to this growth, with a year-on-year increase of 8.7%
(+133 million euros). Totem and Enterprise also grew, by 12.2%
and 0.8% respectively. Revenues in France declined by 0.7% despite
the continued faster pace of retail services revenue growth, which
has yet to offset the decline in Wholesale.
Revenues in Spain remained lower, by 4.6%, but
retail services there continued their improvement. The other
European countries4 were stable.
Customer base
growth5
There were 11.6 million convergent
customers Group-wide at 31 March 2022, up 1.6% year on
year.
Mobile services had
231.8 million access lines at 31 March 2022, a rise of 5.3%
year on year, including 88.3 million contracts, an increase of
8.0% year on year.
Fixed services totaled
46.2 million access lines at 31 March 2022 (1.9% lower year on
year), including 12.8 million very high-speed broadband access
lines, which continued their strong growth (+19.6% year on year).
Fixed narrowband access lines were down 13.4% year on year.
Mobile Financial Services had
nearly 1.8 million customers in Europe and 0.8 million
customers in Africa.
EBITDAaL
Group EBITDAaL stood at 2,620 million euros
at 31 March 2022 (+1.0%). An acceleration in this growth trend is
expected in the second half of the year due to a favorable
underlying effect linked to the employee shareholding program,
which weighed heavily on EBITDAaL in the final quarter of 2021. The
first quarter’s performance is therefore in line with our objective
of EBITDAaL growth of 2.5% to 3% for the full year 2022.
EBITDAaL from telecoms activities was
2,646 million euros (+0.9%).
eCAPEX
Group eCAPEX amounted to 1,610 million
euros in the first quarter of 2022, sharply down 5.8% year on year
due to the catch-up effect in the first quarter of 2021. This trend
is in line with the objective of eCAPEX below 7.4 billion
euros for the full year 2022.
At 31 March 2022, Orange had 58.5 million
households connectable to FTTH worldwide (an increase of 17.7% year
on year). In France, the FTTH customer base rose 23.0%.
Review by operating segment
France
In millions of euros |
|
1Q 2022 |
1Q 2021comparablebasis |
1Q 2021historicalbasis |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
4,386 |
4,415 |
4,404 |
(0.7)% |
(0.4)% |
Retail services (B2C+B2B) |
|
2,733 |
2,688 |
2,688 |
1.7 % |
1.7 % |
Convergence |
|
1,204 |
1,154 |
1,154 |
4.4 % |
4.4 % |
Mobile Only |
|
571 |
559 |
559 |
2.1 % |
2.1 % |
Fixed Only |
|
958 |
975 |
975 |
(1.7)% |
(1.7)% |
Wholesale |
|
1,195 |
1,279 |
1,286 |
(6.6)% |
(7.1)% |
Equipment sales |
|
285 |
276 |
269 |
3.2 % |
6.1 % |
Other revenues |
|
173 |
172 |
162 |
0.8 % |
7.0 % |
Continued
acceleration in retail
services
Revenues in France declined by 0.7% in the first
quarter of 2022 due to the continued contraction of Wholesale
services (-6.6%), linked to the decline of copper and a drop in
call terminations. Co-financing received for the period was
virtually unchanged compared to the first quarter of 2021.
Retail activities continued to accelerate,
growing 1.7% (+0.8% versus 2021), thanks to an excellent commercial
performance and the increase in all ARPOs.
Excluding PSTN6, retail services grew 3.8%,
driven mainly by the success of 5G offers and fiber penetration,
which now represents the majority of our fixed-line customers.
In mobile, net additions grew to 51,0007 in the
first quarter of 2022 (compared with 32,0007 in the first quarter
2021). Year on year, the value mix improved and the churn rate
declined.
In fiber, net fiber additions reached 327,000
(compared to 385,000 in the first quarter 2021). Fiber remains a
powerful customer acquisition tool with more than 53% of new fiber
customers also being new to the Group.
Amid a relative lull in promotions, we have
grown our leadership in terms of customer satisfaction and
increased all ARPOs. The convergent ARPO thus rose by
1.7 euros to 70.5 euros, boosted by the premium of the
new 5G offering. The mobile only ARPO increased by 0.1 euros
to 16.9 euros, buoyed by price increases in 2021 and the
gradual recovery of roaming. Finally, the fixed only ARPO grew by
0.3 euros to 36.1 euros, thanks to the fiber premium.
Europe
In millions of euros |
|
1Q 2022 |
1Q 2021comparablebasis |
1Q 2021historicalbasis |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
2,648 |
2,703 |
2,583 |
(2.0)% |
2.5 % |
Retail services (B2C+B2B) |
|
1,811 |
1,812 |
1,727 |
(0.1)% |
4.9 % |
Convergence |
|
699 |
674 |
666 |
3.6 % |
5.0 % |
Mobile Only |
|
700 |
721 |
719 |
(2.9)% |
(2.6)% |
Fixed Only |
|
309 |
326 |
265 |
(5.1)% |
16.6 % |
IT & Integration services |
|
102 |
90 |
77 |
13.0 % |
32.6 % |
Wholesale |
|
432 |
484 |
454 |
(10.8)% |
(4.9)% |
Equipment sales |
|
364 |
373 |
368 |
(2.5)% |
(1.2)% |
Other revenues |
|
42 |
34 |
34 |
23.8 % |
24.4 % |
Retail services stabilized
Revenues in Europe were down 2.0% in the first
quarter, mainly due to the decline in low-margin wholesale
activities (-10.8% or -52 million euros) linked to call
terminations and international traffic. Excluding Spain, revenues
were stable.
Retail services revenues stabilized at -0.1%
(after declining 4.5% in the first quarter 2021 and 1.8% in the
fourth quarter 2021). Strong performances in Belgium and Poland
offset the decline in Spain.
This result is the fruit of the convergence
strategy and the constant quest for the best financial balance
between value and volumes. It also reflects the ongoing efforts on
customer experience, which improved the churn rate year on year
(for both mobile and fixed-line).
In Romania, the integration of TKR is
progressing and the first quarter was marked by the adoption of the
“Orange Romania Communications” brand in March and the marketing of
convergent offers under the Orange brand in April.
In Spain, revenues were down
4.6% in the first quarter. Retail services continued their
improving trend and were down 4.0% (compared to -5.4% in the fourth
quarter 2021 and -7.9% in the third quarter). Conversely, the
low-margin activities of equipment sales and international traffic
declined.
In a market that is still fiercely competitive,
especially in the low-cost segment, Orange Spain continued to
improve its convergent ARPO trend in the first quarter (down 0.3%
compared with decline of 1.8% in the fourth quarter 2021), albeit
at the cost of slightly negative net additions.
A disciplined promotional policy and efforts to
prioritize the customer experience enabled a reduction in the churn
rate on convergent offers by four points in one year.
We are confident of achieving our objective of a
return to growth in Organic Cash Flow by the end of the year.
Africa & Middle East
In millions of euros |
|
1Q 2022 |
1Q 2021comparablebasis |
1Q 2021historicalbasis |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
1,668 |
1,535 |
1,488 |
8.7 % |
12.1 % |
Retail services (B2C+B2B) |
|
1,463 |
1,340 |
1,301 |
9.2 % |
12.4 % |
Mobile Only |
|
1,265 |
1,168 |
1,137 |
8.4 % |
11.3 % |
Fixed Only |
|
188 |
169 |
160 |
11.6 % |
17.7 % |
IT & Integration services |
|
9 |
4 |
4 |
146.0 % |
106.4 % |
Wholesale |
|
166 |
159 |
153 |
4.5 % |
8.0 % |
Equipment sales |
|
31 |
26 |
24 |
17.1 % |
27.0 % |
Other revenues |
|
9 |
10 |
9 |
(10.8)% |
(8.0)% |
Remarkable performance
continues
Africa & Middle East again recorded strong
revenue growth in the first quarter of 2022 (+8.7%) with the
majority of the countries in the region achieving double-digit
growth.
This performance reflects the continued rapid
growth of retail services (+9.2%), thanks to mobile data (+23.2%)
and fixed broadband (+21.5%), which both continued to show very
strong momentum in customer base growth (+27.7% and +23.5%
respectively) and fixed and mobile ARPOs.
The robustness of these growth drivers more than
offset the decline in Orange Money revenues (-25.1%). Adapting the
commercial strategy in four countries in the region in response to
heightened competition resulted in a sharp reduction in revenues
per customer but made it possible to increase the active customer
base and reach a record level of transaction value recorded through
Orange Money.
Enterprise
In millions of euros |
|
1Q 2022 |
1Q 2021comparablebasis |
1Q 2021historicalbasis |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
1,945 |
1,929 |
1,907 |
0.8 % |
2.0 % |
Fixed Only |
|
876 |
931 |
918 |
(5.9)% |
(4.6)% |
Voice |
|
262 |
290 |
288 |
(9.6)% |
(9.0)% |
Data |
|
614 |
641 |
630 |
(4.3)% |
(2.5)% |
IT & Integration services |
|
818 |
778 |
769 |
5.1 % |
6.3 % |
Mobile |
|
251 |
220 |
220 |
14.2 % |
14.3 % |
Mobile Only |
|
159 |
157 |
157 |
1.1 % |
1.1 % |
Wholesale |
|
10 |
12 |
12 |
(11.3)% |
(11.3)% |
Equipment sales |
|
82 |
52 |
52 |
60.0 % |
60.0 % |
IT&S and mobile drive revenue
growth
Enterprise revenues grew slightly by 0.8% in the
first quarter of 2022, due to increased revenues from IT &
Integration of Mobile services. Fixed services continued to
decline.
Profitability, however, remains under strong
pressure in a challenging environment and a decline in EBITDAaL is
expected in 2022. Corrective measures have been implemented and
other measures will be undertaken in the coming months to enable
the recovery in EBITDAaL.
TOTEM
In millions of euros |
|
1Q 2022 |
1Q 2021comparablebasis |
1Q 2021historicalbasis |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
161 |
143 |
- |
12.2 % |
- |
Wholesale |
|
161 |
143 |
- |
12.2 % |
- |
Other revenues |
|
- |
- |
- |
- |
- |
Totem is the Orange Group’s European company
that owns and now manages the passive mobile infrastructure
portfolio for telecommunication towers (initially in France and
Spain). Since the 1st of January 2022 Totem is presented as a
separate operating segment.
Revenues for the Totem Towerco were
161 million euros in the first quarter. Hosting activities
(i.e. excluding construction, design and basic reinvoicing
activities with no impact on EBITDAaL) represented 136 million
euros, 15% of which came from customers outside the Group.
We will continue to grow our hosting activities
(+3.3% year on year in the first quarter of 2022) by building new
sites and with the aim of increasing the colocation rate, which was
1.35 at the end of the first quarter, to 1.5 by 2026.
International Carriers & Shared
Services
In millions of euros |
|
1Q 2022 |
1Q 2021comparablebasis |
1Q 2021historicalbasis |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
382 |
364 |
364 |
4.9 % |
4.7 % |
Wholesale |
|
262 |
256 |
255 |
2.3 % |
2.6 % |
Other revenues |
|
120 |
108 |
109 |
11.1 % |
9.7 % |
Revenues from International Carriers and Shared
Services grew 4.9% in the first quarter. Services to international
carriers benefited in particular from the growth trend in
international mobile services and containment of the erosion of
voice traffic. Sustained growth in Other revenues was mainly due to
growth in content activities.
Mobile Financial Services
Mobile financial services had 2.6 million
customers at 31 March 2022, including 1.8 million in Europe
and 0.8 million in Africa.
The first quarter of 2022 saw strong commercial
momentum in France and Spain, notably with a year-on-year increase
in the amount of loans of 16%.
Calendar of upcoming events
19 May 2022 - Annual Shareholders Meeting28 July
2022 - Publication
of Half Year 2022 results
Contacts
press: Sylvain Brunosylvain.bruno@orange.com Tom
Wrighttom.wright@orange.com |
financial communication: (analysts and investors)Patrice Lambert-de
Diesbachp.lambert@orange.com Aurélia
Rousselaurelia.roussel@orange.comLouise
Racinelouise.racine@orange.comHong Hai
Vuonghonghai.vuong@orange.com |
Disclaimer
This press release contains forward-looking
statements about Orange’s financial situation, results of
operations 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 Universal Registration Document filed on 31 March 2022
with the French Financial Markets Authority (AMF) and in the annual
report (Form 20-F) filed on 1st April 2022 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: financial key
indicators
Quarterly data
In millions of euros |
|
1Q 2022 |
1Q 2021comparablebasis |
1Q 2021historicalbasis |
variationcomparablebasis |
changehistoricalbasis |
Revenues |
|
10,582 |
10,511 |
10,315 |
0.7 % |
2.6 % |
France |
|
4,386 |
4,415 |
4,404 |
(0.7)% |
(0.4)% |
Europe |
|
2,648 |
2,703 |
2,583 |
(2.0)% |
2.5 % |
Africa & Middle East |
|
1,668 |
1,535 |
1,488 |
8.7 % |
12.1 % |
Enterprise |
|
1,945 |
1,929 |
1,907 |
0.8 % |
2.0 % |
Totem |
|
161 |
143 |
- |
12.2 % |
- |
International Carriers & Shared Services |
|
382 |
364 |
364 |
4.9 % |
4.7 % |
Intra-Group eliminations |
|
(608) |
(579) |
(432) |
|
|
EBITDAaL (1) |
|
2,620 |
2,595 |
2,565 |
1.0 % |
2.2 % |
o/w Telecom activities |
|
2,646 |
2,623 |
2,592 |
0.9 % |
2.1 % |
As % of revenues |
|
25.0 % |
25.0 % |
25.1 % |
0.1 pt |
(0.1 pt) |
o/w Mobile Financial Services |
|
(26) |
(28) |
(28) |
5.5 % |
5.5 % |
eCAPEX |
|
1,610 |
1,708 |
1,760 |
(5.8)% |
(8.6)% |
o/w Telecom activities |
|
1,604 |
1,702 |
1,754 |
(5.8)% |
(8.6)% |
as % of revenues |
|
15.2 % |
16.2 % |
17.0 % |
(1.0 pt) |
(1.8 pt) |
o/w Mobile Financial Services |
|
6 |
6 |
6 |
(7.0)% |
(7.0)% |
EBITDAaL - eCAPEX |
|
1,011 |
887 |
805 |
13.9 % |
25.6 % |
(1) EBITDAaL adjustments are
described in Appendix 2.
Appendix 2: adjusted data to income
statement items
Quarterly data
|
|
1Q 2022 |
|
1Q 2021historical basis |
In millions of euros |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
Revenues |
|
10,582 |
- |
10,582 |
|
10,315 |
- |
10,315 |
External purchases |
|
(4,496) |
(7) |
(4,504) |
|
(4,342) |
(2) |
(4,344) |
Other operating income |
|
186 |
- |
186 |
|
146 |
- |
146 |
Other operating expense |
|
(127) |
(1) |
(128) |
|
(100) |
(57) |
(157) |
Labor expenses |
|
(2,196) |
(37) |
(2,233) |
|
(2,169) |
(31) |
(2,199) |
Operating taxes and levies |
|
(895) |
(3) |
(897) |
|
(881) |
- |
(881) |
Gains (losses) on disposal of fixed assets, investments and
activities |
|
na |
11 |
11 |
|
na |
6 |
6 |
Restructuring costs |
|
na |
(30) |
(30) |
|
na |
(106) |
(106) |
Depreciation and amortization of financed assets |
|
(23) |
- |
(23) |
|
(21) |
- |
(21) |
Depreciation and amortization of right-of-use assets |
|
(381) |
- |
(381) |
|
(358) |
- |
(358) |
Impairment of right-of-use assets |
|
(1) |
- |
(1) |
|
- |
- |
- |
Interest expenses on liabilities related to financed assets |
|
(0) |
0 |
na |
|
(0) |
0 |
na |
Interest expenses on lease liabilities |
|
(29) |
29 |
na |
|
(27) |
27 |
na |
EBITDAaL |
|
2,620 |
(38) |
na |
|
2,565 |
(163) |
na |
Significant litigation |
|
(3) |
3 |
na |
|
(54) |
54 |
na |
Specific labour expenses |
|
(36) |
36 |
na |
|
(27) |
27 |
na |
Fixed assets, investments and business portfolio review |
|
11 |
(11) |
na |
|
6 |
(6) |
na |
Restructuring program costs |
|
(30) |
30 |
na |
|
(106) |
106 |
na |
Acquisition and integration costs |
|
(10) |
10 |
na |
|
(9) |
9 |
na |
Interest expenses on liabilities related to financed assets |
|
na |
(0) |
(0) |
|
na |
(0) |
(0) |
Interest expenses on lease liabilities |
|
na |
(29) |
(29) |
|
na |
(27) |
(27) |
Appendix 3: economic CAPEX to
investments in property, plant and intangible
investment
In millions of euros |
|
1Q 2022 |
1Q 2021historicalbasis |
eCAPEX |
|
1,610 |
1,760 |
Elimination of proceeds from sales of property, plant and equipment
and intangible assets |
|
46 |
19 |
Telecommunication licenses |
|
214 |
277 |
Financed assets |
|
30 |
20 |
Investments in property, plant and equipment and intangible
assets |
|
1,900 |
2,076 |
Appendix 4: key performance
indicators
In thousand, at the end of the period |
|
31 March
2022 |
|
31 March 2021 |
Number of convergent customers |
|
11,551 |
|
11,365 |
Number of mobile accesses (excluding MVNOs)
(1) |
|
231,760 |
|
220,188 |
o/w |
Convergent customers mobile accesses |
|
20,986 |
|
20,430 |
|
Mobile only accesses |
|
210,774 |
|
199,758 |
o/w |
Contract customers mobile accesses |
|
88,319 |
|
81,773 |
|
Prepaid customers mobile accesses |
|
143,441 |
|
138,415 |
Number of fixed accesses (2) |
|
46,201 |
|
47,101 |
|
Fixed Retail accesses |
|
31,175 |
|
31,516 |
|
|
Fixed Broadband accesses |
|
23,841 |
|
23,044 |
|
|
o/w |
Very high‑speed broadband fixed accesses |
|
12,792 |
|
10,699 |
|
|
|
Convergent customers fixed accesses |
|
11,551 |
|
11,365 |
|
|
|
Fixed accesses only |
|
12,290 |
|
11,679 |
|
|
Fixed Narrowband accesses |
|
7,334 |
|
8,472 |
|
Fixed Wholesale accesses |
|
15,025 |
|
15,585 |
Group total accesses (1+2) |
|
277,960 |
|
267,289 |
2021 data is presented on a comparable
basis.
Key performance indicators (KPI) by country are
presented in the “Orange Investors Databook Q1 2022,” available on
www.orange.com, under Finance/Results:
www.orange.com/en/latest-consolidated-results
Appendix 5: 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”: 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”: (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.
Organic Cash Flow (telecoms activities): for the
perimeter of the telecoms activities, net cash provided by
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 the change in the fixed assets payables, (iii) excluding effect
of telecommunication licenses paid and significant litigations paid
or received. Organic Cash Flow (telecoms activities) is not a
financial aggregate defined by IFRS and may not be comparable to
similarly-named indicators used by other companies.
Retail services (B2C + B2B): aggregation of
revenues from (i) Convergent services, (ii) Mobile only services,
(iii) Fixed only services and (iv) IT & integration services
(see definitions). Retail Services (B2C+B2B) revenues include all
revenues of a given scope excluding revenues from wholesale
services, equipment sales and other revenues (see definitions).
Performance indicators
Fixed retail accesses: number of fixed broadband
accesses (xDSL (ADSL and VDSL), FTTx, cable, Fixed-4G (fLTE) and
other broadband accesses (satellite, Wimax and others)) and fixed
narrowband accesses (mainly PSTN) and payphones.
Fixed wholesale accesses: number of fixed
broadband and narrowband wholesale accesses operated by Orange.
Convergence
Convergent services: customer base and revenues
from B2C Convergent retail offers, excluding equipment sales (see
definition) defined as an offer combining at least a broadband
access (xDSL, FTTx, cable or Fixed-4G (fLTE) with cell-lock) and a
mobile voice contract (excluding MVNOs).
Convergent ARPO: average quarterly revenues per
convergent offer (ARPO) calculated by dividing revenues from retail
Convergent services offers invoiced to B2C 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
Mobile Only Services: revenues from mobile
offers (mainly outgoing calls: voice, SMS and data) invoiced to
retail customers, excluding convergent services and equipment sales
(see definitions). The customer base includes customers with a
contract excluding retail convergence, machine-to-machine contracts
and prepaid cards.
Mobile Only ARPO: average quarterly revenues
from Mobile Only (ARPO) calculated by dividing revenues from Mobile
Only retail 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
Fixed Only services: revenues from fixed retail
offers, excluding B2C convergent offers and equipment sales (see
definitions). It includes (i) fixed narrowband services
(conventional fixed telephony), (ii) fixed broadband services, and
(iii) business solutions and networks (with the exception of
France, for which essential business solutions and networks are
supported by Enterprise). For the Enterprise segment, fixed-only
service revenues include sales of network equipment related to the
operation of voice and data services. The customer base consists of
fixed narrowband and fixed broadband customers, excluding retail
convergence customers.
Fixed Only Broadband ARPO: average quarterly
revenues from Fixed Only Broadband (ARPO) calculated by dividing
the revenue from Fixed Only Broadband retail 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
IT & Integration services: revenues from
unified communication and collaboration services (Local Area
Network and telephony, advising, integration and project
management), hosting and infrastructure services (including Cloud
Computing), applications services (customer relations management
and other applications services), security services, video
conferencing offers, machine-to-machine services (excluded
connectivity) as well as sales of equipment related to the above
products and services.
Wholesale
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.
Equipment sales
Equipment sales: revenues from all mobile and
fixed equipment sales, excluding (i) equipment sales associated
with the supply of IT & Integration services, (ii) sales of
network equipment related to the operation of voice and data
services in the Enterprise operating segment, and (iii) equipment
sales to dealers and brokers.
Other revenues
Other revenues: revenues including (i) equipment
sales to brokers and dealers, (ii) portal, (iii) on-line
advertising revenues, (iv) corporate transversal business line
activities, and (v) other miscellaneous revenues.
1
Unless otherwise
stated, the changes presented in this press release are on a
comparable basis.2
Excluding pending
external growth transactions3 B2C and B2B services. See definition
in the attached glossary.4 Poland, Belgium and Luxembourg, Romania,
Slovakia and Moldova5 Figures include the customer bases of Orange
Romania Communications (formerly Telekom Romania Communications)
acquired in September 2021. Changes are shown on a comparable
basis.
6 revenues related to the public switched telephone
network.7 Excluding M2M (machine-to-machine information
exchange)
- PR_Orange_Q1_2022_EN_260422
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