Press release Orange: first half 2024 results
Press release
Paris, 24 July 2024
Financial results at 30 June 2024
Lead the Future strategic plan
delivers a strong performance
- Major
achievements on the four strategic pillars midway through Lead
the Future
-
Accelerated EBITDAaL growth in the second quarter
- Strong
cash flow generation in the first half
-
Confirmation of full-year 2024 guidance
|
In millions of euros |
|
2Q 2024 |
change
comparable
basis |
change
historical
basis |
|
6M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
9,989 |
0.9 % |
1.6 % |
|
19,839 |
1.5 % |
2.5 % |
|
EBITDAaL |
|
3,106 |
2.6 % |
3.3 % |
|
5,511 |
2.5 % |
3.7 % |
|
Operating Income |
|
|
|
|
|
2,032 |
8.4 % |
(1.4)% |
|
Consolidated net income |
|
|
|
|
|
1,092 |
|
0.4 % |
|
o/w Consolidated net income of continuing operations |
|
|
|
|
|
884 |
|
(16.3)% |
|
o/w Consolidated net income of discontinued operations (Spain) |
|
|
|
|
|
209 |
|
ns |
|
Net income attributable to owners of the parent
company |
|
|
|
|
|
824 |
|
(6.0)% |
|
eCAPEX (excluding licenses) |
|
1,537 |
2.2 % |
(7.5)% |
|
3,087 |
2.3 % |
(2.1)% |
|
o/w excluding Spain |
|
1,537 |
2.2 % |
3.6 % |
|
2,921 |
2.6 % |
4.0 % |
|
o/w Spain |
|
- |
- |
- |
|
166 |
(2.1)% |
(52.2)% |
|
EBITDAaL - eCAPEX excluding Spain |
|
1,569 |
3.0 % |
3.0 % |
|
2,590 |
2.4 % |
3.4 % |
|
Organic cash flow (telecom activities) |
|
|
|
|
|
1,437 |
|
(2.7)% |
|
o/w excluding Spain |
|
|
|
|
|
1,551 |
|
17.4 % |
|
Free cash flow all-in (telecom activities) |
|
|
|
|
|
1,138 |
|
(1.1)% |
|
o/w excluding Spain |
|
|
|
|
|
1,255 |
|
21.1 % |
|
Earnings per share (EPS) in euro |
|
|
|
|
|
0.28 |
|
(7.1)% |
Commenting on these results, Christel Heydemann,
the Orange group’s Chief Executive Officer, said:
“Orange has had a very good first half with
solid results that allow us to confirm the Group’s guidance. These
results, which notably include a sharp increase in cash flow,
continue to be driven by the remarkable performance of Africa &
Middle East and the solid improvement of EBITDAaL in Europe,
including in France where EBITDAaL stabilized in this first
half.
This once again demonstrates our ability to
execute the Lead the Future strategic plan in a constantly evolving
market.
In France, our position as market leader,
particularly in the high-end segment, and the excellent quality of
our network and service enable us to maintain a disciplined pricing
policy. We continue to launch distinctive and innovative offerings,
such as the new “Orange Cybersecure” B2C cybersecurity solution,
which draws on the recognized expertise of our subsidiary, Orange
Cyberdefense.
In Spain, the MASORANGE teams are fully
operational and are starting to deliver the initial synergies.
Today, MASORANGE announces the signing of a non-binding agreement
with Vodafone Spain to create a FiberCo, which would allow us to
capitalize on our infrastructure.
I would sincerely like to thank all Orange
colleagues for their dedication and performance during this first
half. We will continue to demonstrate our know-how throughout the
coming weeks of the Paris 2024 Olympic and Paralympic Games. Orange
is here to connect athletes, organizers, spectators and viewers
from all around the world.”
Orange group revenues rose 0.9%
compared with the second quarter of 20231
(+85 million euros) thanks to growth in retail services (+2.4%
or +182 million euros) and a smaller decline in wholesale
services (-7.9% or -128 million euros), mainly related to
higher unbundling and civil engineering rates in France in the
first quarter.
- Africa & Middle
East is the main contributor to this growth, with revenues
rising strongly (+10.3% or +177 million euros), driven by a
robust performance in voice as well as double-digit increases in
its four growth engines (+17.9% in mobile data, +19.2% in fixed
broadband, +18.9% for Orange Money and +14.5% in B2B across all
activities).
- Revenues in France
increased +0.3% (+14 million euros) thanks to the growth in
retail services excluding PSTN2 (+2.5%), in line with
the Lead the Future growth target of between 2.0% and
4.0%, and a smaller decline in wholesale (-5.7%).
- Europe declined
(-2.2% or -38 million euros) due to a reduction in low-margin
activities, partially offset by growth of convergent services
(+7.1%).
- The slight decrease in Orange
Business revenues (-1.4% or -27 million euros) was
again due to the decline in Fixed-only revenues (-7.9% or
-65 million euros), partially offset by growth in IT and
Integration services revenues (+4.6% or +43 million euros),
led by Orange Cyberdefense (+10.6%).
- In terms of commercial
performance, the Group maintained its leadership position
in convergence in Europe (including France), with a total of
9.1 million convergent customers (+1.4%), as
well as its commercial momentum in mobile contracts and very
high-speed fixed broadband accesses. Mobile
services had 245.9 million accesses worldwide (+7.3%)
including 91.1 million contracts (+10.9%). Fixed
services had 38.9 million accesses worldwide
(declining -3.3%) of which 13.7 million were very high-speed
broadband accesses, an area that continued to show strong growth
(+14.0%). Fixed narrowband accesses continued their decline
(-12.8%).
The growth in EBITDAaL demonstrates the
Group’s ability to implement its value strategy.
Group EBITDAaL was up 2.6% in the
second quarter. In the first half of 2024, it reached
5,511 million euros (+2.5%), in line with the target of slight
growth in 2024. This growth was driven by the remarkable
performance of Africa & Middle East (+14.7%), by a solid
performance in Europe (+4.0%) and by France (+0.3%). These more
than offset the decline of Orange Business (-11.3%), which recorded
an improvement compared with the first half of 2023 (+5.4 points).
EBITDAaL from telecom activities grew to
5,573 million euros (+2.4%).
Group operating income in the
first half of 2024 was 2,032 million euros, up 8.4% due to the
increase in EBITDAaL.
Consolidated net income in the
first half of 2024 was stable at 1,092 million euros (+4 million
euros on a historical basis). The decrease of -172 million euros in
net income from continuing operations was offset by an increase of
+176 million euros in net income from discontinued operations. The
contribution to net income for the first half 2024 from Spanish
activities was 3 million euros3.
Net income attributable to owners of the
parent company was 824 million euros. Earnings per share,
Group share (EPS) was 0.28 euros, compared with
0.30 euros in the first half of 2023.
In the first half of 2024, eCAPEX
rose +2.6% to 2,921 million euros excluding Spain, in particular to
support growth in Africa & Middle East. eCAPEX for telecom
activities as a percentage of revenues was 14.7%, in line with the
objective of around 15% in 2024. The number of households
connectable to FTTH reached 57.6 million excluding Spain
(+11.6%), and the FTTH customer base was 12.6 million
(+14.8%).
Organic cash flow from telecom
activities excluding Spain reached 1,551 million
euros at 30 June 2024, in line with the target of at least
3.3 billion euros by the end of 2024. The significant
improvement in cash flow generation of 17.4% year on year (+230
million euros) is mainly due to the improvement of the indicator
“EBITDAaL - eCAPEX” (+64 million euros on a historical basis) and
the decrease in income tax expense payments (+134 million
euros).
Free cash flow all-in from telecom
activities excluding Spain was 1,255 million euros, up
more than 21% year on year.
Net debt fell 3,991 million euros
compared with 31 December 2023, mainly due to the 4 461 million
euros of proceeds received as part of the creation of the MASORANGE
joint venture in Spain. The ratio of net financial debt to EBITDAaL
from telecom activities fell to 1.90x at 30 June 2024, still in
line with the target of approximately 2x over the medium term. The
liquidity position of telecom activities of 17,391 million euros is
solid and the average cost of gross debt is 2.96%.
Financial objectives
The Group can therefore confirm its
financial targets for
20244:
- Low single-digit
growth in EBITDAaL
- Discipline on
eCAPEX
- Organic cash flow
from telecom activities of at least 3.3 billion euros
- A ratio of net
debt/EBITDAaL from telecom activities unchanged at about 2x in the
medium term
- On 5 December 2024,
Orange will pay an interim dividend in cash of
0.30 euros per share for 2024. Payment of a dividend of 0.75 euros
per share in respect of the 2024 fiscal year will be proposed to
the Shareholders’ Meeting in 2025.
Orange’s sustainability
commitments
In the first half of 2024, Orange continued to make
progress on its commitments.
The scores currently awarded by ESG rating agencies
are positive: MSCI: A; Sustainalytics: low risk; ISS: Prime B-;
CDP: A-.
The SBTi has validated Orange’s greenhouse gas
emission reduction targets for the medium term (2030) and long term
(2040).
Orange has already exceeded its goal of reducing its scope 1 and 2
CO2 emissions. This year, it launched a program with its
key suppliers with the aim of jointly developing a long-term
pathway toward Net Zero Carbon.
In June, Orange launched cybersecurity solutions in France in the
B2C market.
The number of people who have benefited from free
digital training since 2021 has reached 2.2 million, in line with
the target.
Orange has published its Human Rights Policy, with
commitments to promote digital citizenship, campaign for respecting
privacy and freedom of expression, promote non-discrimination and
equal opportunities, guarantee decent working conditions and do
business with complete confidence, while mitigating the
environmental impacts of its activities.
Changes in the asset portfolio
Launch of MASORANGE in Spain
MASORANGE, the 50:50 joint venture of Orange and
MASMOVIL, was created on 26 March 2024 combining their activities
in Spain. The Group’s Spanish operations are deemed to be
discontinued under IFRS 5 until the closing of the transaction
and are subsequently consolidated using the equity method in the
Group’s accounts. The historical data has been restated.
In the first three months, MASORANGE has delivered
synergies which are expected to reach 100 million euros in 2024,
with an estimated total potential of at least 500 million euros
from the fourth year following the closing of the transaction. In
addition, today MASORANGE and Vodafone Spain announce the signing
of a non-binding agreement to create a shared FTTH network
FiberCo which would cover about 11.5 million premises in
Spain including around 4 million customers.
Transactions between shareholders with no
impact on the nature of the control exercised:
Merger of Orange Romania Communications
into Orange Romania
In December 2023, an agreement was signed with
the Romanian government setting out the key principles of the
merger of Orange Romania Communications (jointly owned by Orange
Romania with a 54% stake and the Romanian government with a 46%
stake) with Orange Romania.
The merger between the two companies, through the
absorption of Orange Romania Communications into Orange Romania,
was completed in early June 2024. On completion of the transaction,
the Romanian government held 20% of Orange Romania. The merger will
enable Orange to implement its convergent operator strategy in
Romania.
Conversion of Nethys’ stake in VOO into
Orange Belgium shares
As part of Orange Belgium’s acquisition of
telecommunication operator VOO in Belgium in June 2023, Nethys had
the option of converting its minority interest in VOO (25% plus one
share) into Orange Belgium shares by June 2025. At the end of 2023,
the Board of Directors of Nethys announced its intention to convert
its stake into Orange Belgium shares.
In May 2024, the Shareholders’ Meeting of Orange
Belgium approved Nethys taking an 11% stake in Orange Belgium. The
capital increase was carried out through the contribution in kind
of all VOO shares held by Nethys. On completion of the transaction,
Orange held 69.6% of the share capital of Orange Belgium. Nethys
has a put option granted by Orange on its stake in Orange Belgium
exercisable until March 2026.
________________________________________________________________________________
The Board of Directors of Orange SA met on
23 July 2024 and reviewed the summary Condensed Consolidated
Financial Statements and management report at 30 June 2024. In
accordance with auditing standards, the Group's statutory auditors
performed a limited review of the interim consolidated financial
statements and verified the information presented in the interim
management report.
More detailed information on the Group’s financial
results and performance indicators is available on the Orange
website
www.orange.com/en/finance/investors/consolidated-results.
Review by operating
segment
France
|
In millions of euros |
|
2Q 2024 |
change
comparable
basis |
change
historical
basis |
|
6M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
4,396 |
0.3 % |
0.3 % |
|
8,736 |
0.6 % |
0.5 % |
|
Retail services (B2C+B2B) |
|
2,824 |
1.3 % |
1.3 % |
|
5,618 |
1.5 % |
1.4 % |
|
Convergence |
|
1,313 |
4.9 % |
4.7 % |
|
2,601 |
4.6 % |
4.3 % |
|
Mobile-only |
|
591 |
(1.6)% |
(1.3)% |
|
1,176 |
(0.7)% |
(0.5)% |
|
Fixed-only |
|
920 |
(1.6)% |
(1.6)% |
|
1,842 |
(1.3)% |
(1.3)% |
|
Wholesale |
|
1,091 |
(5.7)% |
(5.7)% |
|
2,146 |
(4.9)% |
(4.9)% |
|
Equipment sales |
|
296 |
5.5 % |
7.1 % |
|
621 |
4.8 % |
6.3 % |
|
Other revenues |
|
185 |
16.8 % |
14.5 % |
|
351 |
15.9 % |
13.0 % |
|
EBITDAaL |
|
|
|
|
|
2,872 |
0.3 % |
0.5 % |
|
EBITDAaL / Revenues |
|
|
|
|
|
32.9 % |
(0.1 pt) |
(0.0 pt) |
|
Operating Income |
|
|
|
|
|
1,406 |
18.3 % |
18.6 % |
|
eCAPEX |
|
|
|
|
|
1,445 |
1.1 % |
1.1 % |
|
eCAPEX / Revenues |
|
|
|
|
|
16.5 % |
0.1 pt |
0.1 pt |
Growth in retail services and improvement
in EBITDAaL
With quarterly revenues of
4,396 million euros, France recorded growth of 0.3% year on
year (+14 million euros). Growth in retail services (+1.3% or
+37 million euros), equipment sales (+5.5% or +16 million
euros) and other revenues (+16.8% or +27 million euros) offset
the expected decline in wholesale services (-5.7% or
-66 million euros), which was mitigated by the higher
unbundling and civil engineering rates in the first quarter.
The growth in retail services excluding fixed-only
narrowband services (PSTN) of 2.5% (+66 million euros) is
fully in line with the Lead the Future growth target of
between 2% and 4%. It reflects the successful execution of France’s
volume and value strategy, as illustrated by the improvement in
commercial performance this quarter and the strong year-on-year
growth in convergent ARPO, which reached 76.5 euros.
As French market leader, the Group’s pricing
strategy is disciplined and based on a volume/value balance that is
supported by a wide range of segmented offers conducive to
cross-selling, the solidity of its NPS and customer base, the
quality of the network and the significant potential for migration
to 5G and Fiber. New targeted offers have been launched (including
Smart TV, Orange Cybersecure…).
Mobile net additions for the second quarter were
+104,0005, benefiting in particular from the good
momentum of the Sosh brand. The churn rate remained moderate at
11.4%. Fixed broadband net additions in the second quarter
stabilized at -4,000, with Fiber retaining its excellent momentum
(+261,000). At 30 June 2024, 38.9 million households were
connectable to Orange Fiber.
With slight growth of 0.3% in the first half,
France confirms its target for stable EBITDAaL in
2024.
The disciplined investment policy translated to an
eCapex to EBITDAaL ratio of 16.5% in the first
half.
Europe
|
In millions of euros |
|
2Q 2024 |
change
comparable
basis |
change
historical
basis |
|
6M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
1,741 |
(2.2)% |
5.3 % |
|
3,468 |
(2.1)% |
7.4 % |
|
Retail services (B2C+B2B) |
|
1,271 |
(0.0)% |
12.7 % |
|
2,503 |
0.0 % |
13.7 % |
|
Convergence |
|
353 |
7.1 % |
33.1 % |
|
699 |
7.0 % |
34.5 % |
|
Mobile-only |
|
546 |
(0.2)% |
1.8 % |
|
1,082 |
(0.3)% |
2.1 % |
|
Fixed-only |
|
248 |
(4.1)% |
28.1 % |
|
496 |
(4.1)% |
29.2 % |
|
IT & Integration services |
|
124 |
(8.9)% |
(6.5)% |
|
226 |
(8.7)% |
(5.2)% |
|
Wholesale |
|
210 |
(10.8)% |
(7.0)% |
|
408 |
(10.1)% |
(6.0)% |
|
Equipment sales |
|
224 |
(4.6)% |
(1.0)% |
|
482 |
(3.1)% |
1.3 % |
|
Other revenues |
|
36 |
(5.2)% |
(50.7)% |
|
75 |
(13.8)% |
(36.6)% |
|
EBITDAaL |
|
|
|
|
|
956 |
4.0 % |
12.7 % |
|
EBITDAaL / Revenues |
|
|
|
|
|
27.6 % |
1.6 pt |
1.3 pt |
|
Operating Income |
|
|
|
|
|
107 |
14.7 % |
(63.0)% |
|
eCAPEX |
|
|
|
|
|
672 |
4.5 % |
(10.8)% |
|
o/w excluding Spain |
|
|
|
|
|
506 |
6.8 % |
24.4 % |
|
eCAPEX / Revenues excluding Spain |
|
|
|
|
|
14.6 % |
1.2 pt |
2.0 pt |
|
o/w Spain |
|
|
|
|
|
166 |
(2.1)% |
(52.2)% |
Solid growth in EBITDAaL
Revenues for Europe decreased
-2.2% (-38 million euros) in the second quarter due to a
reduction in low-margin activities, partially offset by growth in
convergent services (+7.1% or +23 million euros). Low-margin
activities declined: these included wholesale services (-10.8% or
-25 million euros) due to the regulatory decrease in call
termination rates, which had no effect on EBITDAaL, the resale of
energy in Poland (due to lower prices compared with 2023), revenues
from IT & Integration services (-8.9% or -12 million
euros) and equipment sales (-4.6% or -11 million euros).
The good performance of Convergence benefited from
price increases and growth in the Fixed broadband customer base,
with nearly 3.6 million FTTH and cable customers, up +10.5%
year on year. Declines of 0.6 points in Mobile churn and 2.4 points
in Fixed broadband churn, as well as net additions of +117,000 in
Mobile, +72,000 in Fiber and +21,000 in Convergence, reflect good
commercial momentum.
EBITDAaL grew 4.0% (+37 million
euros) due to operational efficiency and the initial effects of the
consolidation in Belgium, which delivered 13.9% growth in EBITDAaL
as a result of synergies and price increases. EBITDAaL rose 3.8% in
Poland and decreased slightly in central Europe (-2.5%).
With an upwardly revised target for 2024, the Group
is confident about Europe’s ability to achieve low to moderate
growth in EBITDAaL in 2024.
eCAPEX (excluding Spain) increased
6.8% in the first half (+32 million euros) in line with the
investment plan.
Africa & Middle East
|
In millions of euros |
|
2Q 2024 |
change
comparable
basis |
change
historical
basis |
|
6M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
1,893 |
10.3 % |
6.8 % |
|
3,742 |
10.7 % |
7.8 % |
|
Retail services (B2C+B2B) |
|
1,710 |
11.3 % |
8.6 % |
|
3,373 |
11.7 % |
9.4 % |
|
Mobile-only |
|
1,458 |
10.3 % |
7.6 % |
|
2,872 |
10.7 % |
8.3 % |
|
Fixed-only |
|
232 |
13.9 % |
11.6 % |
|
464 |
15.1 % |
13.0 % |
|
IT & Integration services |
|
20 |
77.3 % |
76.9 % |
|
37 |
78.9 % |
77.9 % |
|
Wholesale |
|
150 |
(0.2)% |
(9.8)% |
|
302 |
0.5 % |
(6.7)% |
|
Equipment sales |
|
23 |
18.0 % |
11.5 % |
|
46 |
11.8 % |
7.1 % |
|
Other revenues |
|
11 |
(2.0)% |
(13.6)% |
|
20 |
3.3 % |
(6.7)% |
|
EBITDAaL |
|
|
|
|
|
1,425 |
14.7 % |
13.1 % |
|
EBITDAaL / Revenues |
|
|
|
|
|
38.1 % |
1.3 pt |
1.8 pt |
|
Operating Income |
|
|
|
|
|
943 |
27.9 % |
27.2 % |
|
eCAPEX |
|
|
|
|
|
692 |
11.1 % |
6.8 % |
|
eCAPEX / Revenues |
|
|
|
|
|
18.5 % |
0.1 pt |
(0.2 pt) |
Outstanding growth in EBITDAaL
Africa & Middle East recorded strong growth in
revenues in the second quarter (+177 million
euros), with double-digit growth (+10.3%) for the fifth consecutive
quarter and +6.8% on a historical basis.
This performance was underpinned by a solid
performance in voice, with positive volume and value effects, and
the continued rapid growth of retail services (+11.3%) thanks to
double-digit increases in the four growth engines, namely Mobile
data (+17.9%), Fixed broadband (+19.2%), Orange Money (+18.9%) and
B2B across all activities (+14.5%). Orange Money recorded revenue
growth of more than 20% in nine countries.
The mobile customer base reached
156.0 million, a year-on-year increase of 6.8%, with
accelerated growth in the 4G customer base (+25.1%) and a 4.4%
increase in average Mobile ARPO in the first half. The fixed
broadband customer base was 3.6 million customers, up 16.3%.
Lastly, Orange Money had 35.6 million active customers, up 14.0%.
The “Max it” app has 10.5 million active users.
EBITDAaL increased 14.7% (+183
million euros) in the first half of the year. The EBITDAaL growth
rate thus increased for the third consecutive half and the EBITDAaL
margin rose 1.3 points, largely owing to the digitalization of
distribution.
eCAPEX rose 11.1% in the first
half, supporting the strong growth.
Despite the devaluation of the Egyptian pound,
Africa & Middle East posted solid first-half growth on a
historical basis of +7.8% in revenues, +13.1% in EBITDAaL and
+19.8% in “EBITDAaL – eCAPEX” cash flow.
With an upwardly revised target for 2024, the Group
is confident that the segment can achieve continuous double-digit
growth in EBITDAaL.
Orange Business
|
In millions of euros |
|
2Q 2024 |
change
comparable
basis |
change
historical
basis |
|
6M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
1,980 |
(1.4)% |
(0.7)% |
|
3,919 |
(0.9)% |
(0.6)% |
|
Fixed-only |
|
751 |
(7.9)% |
(7.7)% |
|
1,502 |
(8.3)% |
(8.4)% |
|
Voice |
|
196 |
(15.1)% |
(15.0)% |
|
396 |
(14.5)% |
(14.6)% |
|
Data |
|
555 |
(5.1)% |
(4.8)% |
|
1,107 |
(5.9)% |
(6.0)% |
|
IT & Integration services |
|
977 |
4.6 % |
5.9 % |
|
1,914 |
6.0 % |
6.7 % |
|
Mobile |
|
252 |
(2.4)% |
(2.4)% |
|
503 |
(1.2)% |
(1.2)% |
|
Mobile-only |
|
176 |
(2.4)% |
(2.4)% |
|
352 |
1.0 % |
1.0 % |
|
Wholesale |
|
10 |
(2.0)% |
(2.0)% |
|
20 |
(2.0)% |
(2.0)% |
|
Equipment sales |
|
66 |
(2.3)% |
(2.3)% |
|
131 |
(6.8)% |
(6.8)% |
|
EBITDAaL |
|
|
|
|
|
277 |
(11.3)% |
(10.9)% |
|
EBITDAaL / Revenues |
|
|
|
|
|
7.1 % |
(0.8 pt) |
(0.8 pt) |
|
Operating Income |
|
|
|
|
|
105 |
(9.9)% |
(11.0)% |
|
eCAPEX |
|
|
|
|
|
138 |
(2.6)% |
(1.6)% |
|
eCAPEX / Revenues |
|
|
|
|
|
3.5 % |
(0.1 pt) |
(0.0 pt) |
Continuous improvement in line with the
recovery plan
Revenues for the Orange Business
segment were 1,980 million euros in the second quarter of
2024, down slightly (-1.4% or -27 million euros).
Growth in IT & Integration services (+4.6% or
+43 million euros) was driven by double-digit growth at Orange
Cyberdefense (+10.6%) and the performance of Digital services
(+7.2%). It did not fully offset the structural decline in legacy
fixed voice and data activities (-7.9% or -65 million
euros).
The Orange Business transformation
plan is continuing to deliver results: the first
departures under the voluntary departure plan have begun and the
plan to transition employees from legacy activities to IT
activities is continuing at pace. The number of certifications
reached 14,154, compared with the target of 20,000 in 2025.
The commercial success of the cybersecurity
offering launched in France on the B2C market demonstrates the
ability to leverage the expertise of Orange Cyberdefense. This
offering will also be rolled out in other European countries.
The deterioration in EBITDAaL in
the first half (-11.3%, compared with -16.7% in the first half of
2023) is in line with the ambition to slow the decline in 2024
relative to 2023. EBITDAaL for the first half, in line with the
expected trajectory, confirms the ambition of Orange Business to
halve the decline in 2024 compared with 2023, before returning to
growth in 2025 as a result of the plan launched last year.
TOTEM
|
In millions of euros |
|
2Q 2024 |
change
comparable
basis |
change
historical
basis |
|
6M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
175 |
3.8 % |
3.8 % |
|
349 |
1.9 % |
1.9 % |
|
Wholesale |
|
175 |
3.8 % |
3.8 % |
|
349 |
1.9 % |
1.9 % |
|
Other revenues |
|
- |
- |
- |
|
- |
- |
- |
|
EBITDAaL |
|
|
|
|
|
185 |
2.0 % |
1.2 % |
|
EBITDAaL / Revenues |
|
|
|
|
|
53.0 % |
0.0 pt |
(0.4 pt) |
|
Operating Income |
|
|
|
|
|
129 |
2.5 % |
1.3 % |
|
eCAPEX |
|
|
|
|
|
64 |
(0.0)% |
(1.9)% |
|
eCAPEX / Revenues |
|
|
|
|
|
18.3 % |
(0.4 pt) |
(0.7 pt) |
The revenues of the TowerCo TOTEM grew 1.9% in the
first half due to the increase in tower location planning and
construction work in France (mainly on behalf of new occupants) and
hosting (+1.3%), partially offset by the decrease in revenues from
energy reselling (largely due to the fall in average prices).
Hosting revenues were 289 million euros in the first half and the
contributory share grew 1.8% (+8.2% excluding MASORANGE). There
were 27,169 sites at the end of June 2024, with a tenancy ratio of
1.41 co-tenants per site, an increase in line with the target to
reach 1.5 co-tenants per site in 2026.
EBITDAaL continued its steady growth of +2.0%
(+4.4% for hosting activities) in the first half, while eCAPEX
remained stable.
International Carriers & Shared
Services
|
In millions of euros |
|
2Q 2024 |
change
comparable
basis |
change
historical
basis |
|
6M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
327 |
(15.9)% |
(20.1)% |
|
662 |
(9.2)% |
(13.3)% |
|
Wholesale |
|
224 |
(22.7)% |
(22.7)% |
|
428 |
(17.2)% |
(17.2)% |
|
Other revenues |
|
104 |
4.0 % |
(13.7)% |
|
234 |
10.5 % |
(5.2)% |
|
EBITDAaL |
|
|
|
|
|
(142) |
(90.0)% |
(65.7)% |
|
EBITDAaL / Revenues |
|
|
|
|
|
(21.5)% |
(11.2 pt) |
(10.2 pt) |
|
Operating Income |
|
|
|
|
|
(519) |
(65.9)% |
(57.6)% |
|
eCAPEX |
|
|
|
|
|
75 |
(21.8)% |
(23.0)% |
|
eCAPEX / Revenues |
|
|
|
|
|
11.3 % |
(1.8 pt) |
(1.4 pt) |
Revenues from wholesale services were down 22.7%
(-66 million euros) in the second quarter, partly due to the impact
of the sale of rights of use for a submarine cable in the first
half of 2023. The decline in voice revenues (in volume and price)
was partially offset by the increase in services related to the
management of data and roaming activities.
The increase in other revenues in the second
quarter of 4.0% (+4 million euros) reflects the good
performance of Orange Marine’s submarine cable laying and
maintenance activities, Sofrecom’s services and the increase in
patent and intellectual property revenues for the Group’s
innovation division.
EBITDAaL deteriorated by 67 million euros in the
first half, due to the impact of the sale of rights of use for a
submarine cable in the first half of 2023, phasing effects and
one-off expenses.
Mobile Financial Services
|
In millions of euros |
|
|
|
|
|
6M 2024 |
change
comparable
basis |
change
historical
basis |
|
Net Banking Income (NBI) |
|
|
|
|
|
34 |
(19.1)% |
(54.9)% |
|
Cost of bank credit risk |
|
|
|
|
|
(9) |
(31.2)% |
(73.1)% |
|
Operating Income |
|
|
|
|
|
(140) |
(85.6)% |
(92.2)% |
|
eCAPEX |
|
|
|
|
|
0 |
(99.4)% |
(99.4)% |
The plan to discontinue Orange Bank’s activities in
Europe is ongoing:
- in France, Orange Bank completed the
referral of customer accounts to Hello Bank! and BNP Paribas;
- in Spain, Orange Bank finalized in May
the sale of its loan portfolio to Banco Cetelem.
At the end of June, Orange signed an exclusive
partnership with BNP Paribas Personal Finance France to strengthen
its mobile handset financing offer. Under its Cetelem brand, BNP
Paribas Personal Finance will offer Orange customers in France a
payment installment plan to make online and in-store purchases of
mobile handsets more affordable.
Calendar of upcoming events
24 October 2024 - Publication of
Third-Quarter 2024 Financial Results
Contacts
press:
Frédéric Texier
fred.texier@orange.com
Tom Wright
tom.wright@orange.com
Caroline Cellier
caroline.cellier@orange.com |
financial communication:
(analysts and investors)
Constance Gest
constance.gest@orange.com
Louise Racine
louise.racine@orange.com
Hong Hai Vuong
honghai.vuong@orange.com
Louis Celier
louis.celier@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 28 March 2024
with the French Financial Markets Authority (AMF) and in the annual
report (Form 20-F) filed on 29 March 2024 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 |
|
2Q 2024 |
2Q 2023
comparable
basis |
2Q 2023
historical
basis |
variation
comparable
basis |
change
historical
basis |
|
Revenues |
|
9,989 |
9,903 |
9,835 |
0.9 % |
1.6 % |
|
France |
|
4,396 |
4,383 |
4,384 |
0.3 % |
0.3 % |
|
Europe |
|
1,741 |
1,779 |
1,653 |
(2.2)% |
5.3 % |
|
Africa & Middle-East |
|
1,893 |
1,716 |
1,773 |
10.3 % |
6.8 % |
|
Orange Business |
|
1,980 |
2,007 |
1,994 |
(1.4)% |
(0.7)% |
|
Totem |
|
175 |
168 |
168 |
3.8 % |
3.8 % |
|
International Carriers & Shared Services |
|
327 |
389 |
410 |
(15.9)% |
(20.1)% |
|
Intra-Group eliminations |
|
(524) |
(540) |
(546) |
|
|
|
EBITDAaL (1) |
|
3,106 |
3,027 |
3,007 |
2.6 % |
3.3 % |
|
o/w Telecom activities |
|
3,133 |
3,058 |
3,034 |
2.5 % |
3.3 % |
|
As % of revenues |
|
31.4 % |
30.9 % |
30.8 % |
0.5 pt |
0.5 pt |
|
o/w Mobile Financial Services |
|
(28) |
(31) |
(27) |
10.2 % |
(4.8)% |
|
eCAPEX |
|
1,537 |
1,504 |
1,661 |
2.2 % |
(7.5)% |
|
o/w excluding Spain |
|
1,537 |
1,504 |
1,484 |
2.2 % |
3.6 % |
|
o/w Telecom activities |
|
1,537 |
1,492 |
1,472 |
3.0 % |
4.4 % |
|
As % of revenues |
|
15.4 % |
15.1 % |
15.0 % |
0.3 pt |
0.4 pt |
|
o/w Mobile Financial Services |
|
(1) |
12 |
12 |
- |
- |
|
o/w Spain |
|
- |
- |
177 |
- |
- |
|
EBITDAaL - eCAPEX excluding Spain |
|
1,569 |
1,523 |
1,524 |
3.0 % |
3.0 % |
|
(1) EBITDAaL presentation adjustments are described in Appendix
2. |
|
|
|
|
|
|
30 June data
|
In millions of euros |
|
6M 2024 |
6M 2023
comparable
basis |
6M 2023
historical
basis |
variation
comparable
basis |
change
historical
basis |
|
Revenues |
|
19,839 |
19,552 |
19,352 |
1.5 % |
2.5 % |
|
France |
|
8,736 |
8,687 |
8,691 |
0.6 % |
0.5 % |
|
Europe |
|
3,468 |
3,541 |
3,230 |
(2.1)% |
7.4 % |
|
Africa & Middle-East |
|
3,742 |
3,380 |
3,472 |
10.7 % |
7.8 % |
|
Orange Business |
|
3,919 |
3,953 |
3,944 |
(0.9)% |
(0.6)% |
|
Totem |
|
349 |
342 |
342 |
1.9 % |
1.9 % |
|
International Carriers & Shared Services |
|
662 |
728 |
763 |
(9.2)% |
(13.3)% |
|
Intra-Group eliminations |
|
(1,036) |
(1,079) |
(1,090) |
|
|
|
EBITDAaL (1) |
|
5,511 |
5,378 |
5,313 |
2.5 % |
3.7 % |
|
o/w Telecom activities |
|
5,573 |
5,443 |
5,375 |
2.4 % |
3.7 % |
|
As % of revenues |
|
28.1 % |
27.8 % |
27.8 % |
0.3 pt |
0.3 pt |
|
France |
|
2,872 |
2,862 |
2,859 |
0.3 % |
0.5 % |
|
Europe |
|
956 |
919 |
848 |
4.0 % |
12.7 % |
|
Africa & Middle-East |
|
1,425 |
1,243 |
1,260 |
14.7 % |
13.1 % |
|
Orange Business |
|
277 |
312 |
311 |
(11.3)% |
(10.9)% |
|
Totem |
|
185 |
181 |
183 |
2.0 % |
1.2 % |
|
International Carriers & Shared Services |
|
(142) |
(75) |
(86) |
(90.0)% |
(65.7)% |
|
o/w Mobile Financial Services |
|
(62) |
(65) |
(62) |
4.7 % |
(0.6)% |
|
Operating Income |
|
2,032 |
1,874 |
2,061 |
8.4 % |
(1.4)% |
|
o/w Telecom activities |
|
2,172 |
1,949 |
2,133 |
11.4 % |
1.8 % |
|
o/w Mobile Financial Services |
|
(140) |
(75) |
(73) |
(85.6)% |
(92.2)% |
|
Consolidated net income |
|
1,092 |
|
1,088 |
|
0.4 % |
|
Consolidated net income of continuing operations |
|
884 |
|
1,055 |
|
(16.3)% |
|
Net income attributable to owners of the parent company |
|
824 |
|
877 |
|
(6.0)% |
|
eCAPEX |
|
3,087 |
3,016 |
3,154 |
2.3 % |
(2.1)% |
|
o/w excluding Spain |
|
2,921 |
2,847 |
2,807 |
2.6 % |
4.0 % |
|
o/w Telecom activities |
|
2,921 |
2,828 |
2,787 |
3.3 % |
4.8 % |
|
As % of revenues |
|
14.7 % |
14.5 % |
14.4 % |
0.3 pt |
0.3 pt |
|
o/w Mobile Financial Services |
|
0 |
19 |
20 |
(99.4)% |
(99.4)% |
|
o/w Spain |
|
166 |
169 |
347 |
(2.1)% |
(52.2)% |
|
EBITDAaL - eCAPEX excluding Spain |
|
2,590 |
2,531 |
2,506 |
2.4 % |
3.4 % |
|
(1) EBITDAaL presentation adjustments are described in Appendix
2. |
|
|
|
|
|
|
|
In millions of euros |
|
June 30
2024 |
December 31
2023 |
|
Organic cash-flow from telecom activities (excluding
Spain) |
|
1,551 |
1,320 |
|
Free cash flow all-in from telecom activities (excluding
Spain) |
|
1,255 |
1,036 |
|
Net financial debt (1) (3) |
|
23,011 |
27,002 |
|
Ratio of net financial debt / EBITDAaL from telecom
activities (2) (3) |
|
1.90 |
2.05 |
|
(1) Net financial debt as defined and used by Orange does not
include Mobile Financial Services activities, for which this
concept is not relevant. |
|
(2) The ratio of net financial debt to EBITDAaL from telecom
activities is calculated based on the ratio of the Group’s net
financial debt to EBITDAaL from telecom activities over the
previous 12 months. |
|
(3) At December 31, 2023, net financial debt and ratio of net
financial debt to EBITDAaL from telecom activities including
Spain. |
Appendix 2: adjusted data to
income statement items
Quarterly data
|
|
|
2Q 2024 |
|
2Q 2023
historical basis |
|
In millions of euros |
|
Adjusted data |
Presentation adjustments |
Income statement |
|
Adjusted data |
Presentation adjustments |
Income statement |
|
Revenues |
|
9,989 |
- |
9,989 |
|
9,835 |
- |
9,835 |
|
External purchases |
|
(4,054) |
(2) |
(4,056) |
|
(4,050) |
(13) |
(4,063) |
|
Other operating income |
|
211 |
26 |
237 |
|
196 |
- |
196 |
|
Other operating expense |
|
(130) |
(4) |
(133) |
|
(91) |
(50) |
(141) |
|
Labor expenses |
|
(2,162) |
(0) |
(2,162) |
|
(2,162) |
(238) |
(2,399) |
|
Operating taxes and levies |
|
(289) |
(1) |
(290) |
|
(294) |
(1) |
(295) |
|
Gains (losses) on disposal of fixed assets, investments and
activities |
|
na |
12 |
12 |
|
na |
14 |
14 |
|
Restructuring costs |
|
na |
(64) |
(64) |
|
na |
(25) |
(25) |
|
Depreciation and amortization of financed assets |
|
(40) |
- |
(40) |
|
(31) |
- |
(31) |
|
Depreciation and amortization of right-of-use assets |
|
(352) |
2 |
(350) |
|
(330) |
(3) |
(333) |
|
Impairment of right-of-use assets |
|
(0) |
(34) |
(34) |
|
0 |
(28) |
(28) |
|
Interests expenses on liabilities related to financed assets |
|
(4) |
4 |
na |
|
(4) |
4 |
na |
|
Interests expenses on lease liabilities |
|
(64) |
64 |
na |
|
(61) |
61 |
na |
|
EBITDAaL |
|
3,106 |
3 |
na |
|
3,007 |
(279) |
na |
|
Significant litigation |
|
24 |
(24) |
na |
|
(39) |
39 |
na |
|
Specific labour expenses |
|
0 |
(0) |
na |
|
(238) |
238 |
na |
|
Fixed assets, investments and business portfolio review |
|
12 |
(12) |
na |
|
14 |
(14) |
na |
|
Restructuring program costs |
|
(95) |
95 |
na |
|
(60) |
60 |
na |
|
Acquisition and integration costs |
|
(6) |
6 |
na |
|
(22) |
22 |
na |
|
Interests expenses on liabilities related to financed assets |
|
na |
(4) |
(4) |
|
na |
(4) |
(4) |
|
Interests expenses on lease liabilities |
|
na |
(64) |
(64) |
|
na |
(61) |
(61) |
30 June data
|
|
|
6M 2024 |
|
6M 2023
historical basis |
|
In millions of euros |
|
Adjusted data |
Presentation adjustments |
Income statement |
|
Adjusted data |
Presentation adjustments |
Income statement |
|
Revenues |
|
19,839 |
- |
19,839 |
|
19,352 |
- |
19,352 |
|
External purchases |
|
(8,110) |
(2) |
(8,112) |
|
(8,049) |
(13) |
(8,062) |
|
Other operating income |
|
440 |
26 |
466 |
|
381 |
- |
381 |
|
Other operating expense |
|
(247) |
(8) |
(255) |
|
(164) |
41 |
(123) |
|
Labor expenses |
|
(4,346) |
(8) |
(4,354) |
|
(4,224) |
(265) |
(4,489) |
|
Operating taxes and levies |
|
(1,164) |
(2) |
(1,166) |
|
(1,157) |
(2) |
(1,159) |
|
Gains (losses) on disposal of fixed assets, investments and
activities |
|
na |
(140) |
(140) |
|
na |
50 |
50 |
|
Restructuring costs |
|
na |
(108) |
(108) |
|
na |
(35) |
(35) |
|
Depreciation and amortization of financed assets |
|
(77) |
- |
(77) |
|
(59) |
- |
(59) |
|
Depreciation and amortization of right-of-use assets |
|
(690) |
0 |
(689) |
|
(660) |
(3) |
(663) |
|
Impairment of right-of-use assets |
|
(1) |
(34) |
(34) |
|
0 |
(28) |
(28) |
|
Interests expenses on liabilities related to financed assets |
|
(8) |
8 |
na |
|
(6) |
6 |
na |
|
Interests expenses on lease liabilities |
|
(125) |
125 |
na |
|
(101) |
101 |
na |
|
EBITDAaL |
|
5,511 |
(143) |
na |
|
5,313 |
(149) |
na |
|
Significant litigation |
|
23 |
(23) |
na |
|
57 |
(57) |
na |
|
Specific labour expenses |
|
(7) |
7 |
na |
|
(265) |
265 |
na |
|
Fixed assets, investments and business portfolio review |
|
(140) |
140 |
na |
|
50 |
(50) |
na |
|
Restructuring program costs |
|
(143) |
143 |
na |
|
(70) |
70 |
na |
|
Acquisition and integration costs |
|
(10) |
10 |
na |
|
(28) |
28 |
na |
|
Interests expenses on liabilities related to financed assets |
|
na |
(8) |
(8) |
|
na |
(6) |
(6) |
|
Interests expenses on lease liabilities |
|
na |
(125) |
(125) |
|
na |
(101) |
(101) |
Appendix 3: economic CAPEX to
investments in property, plant and intangible
investment
Quarterly data
|
|
|
2Q 2024 |
|
2Q 2023
historical
basis |
|
In millions of euros |
|
Excluding Spain |
Spain |
Group total |
|
Excluding Spain |
Spain |
Group total |
|
Investments in property, plant and equipment and intangible
assets |
|
1,626 |
- |
1,626 |
|
1,668 |
197 |
1,865 |
|
Financed assets |
|
(35) |
- |
(35) |
|
(74) |
- |
(74) |
|
Proceeds from sales of property, plant and equipment and intangible
assets |
|
(54) |
- |
(54) |
|
(62) |
- |
(62) |
|
Telecommunication licenses |
|
0 |
- |
0 |
|
(48) |
(20) |
(68) |
|
eCAPEX |
|
1,537 |
- |
1,537 |
|
1,484 |
177 |
1,661 |
30 June data
|
|
|
6M 2024 |
|
6M 2023
historical
basis |
|
In millions of euros |
|
Excluding Spain |
Spain |
Group total |
|
Excluding Spain |
Spain |
Group total |
|
Investments in property, plant and equipment and intangible
assets |
|
3,099 |
168 |
3,267 |
|
3,457 |
378 |
3,834 |
|
Financed assets |
|
(56) |
- |
(56) |
|
(145) |
- |
(145) |
|
Proceeds from sales of property, plant and equipment and intangible
assets |
|
(121) |
- |
(121) |
|
(153) |
- |
(153) |
|
Telecommunication licenses |
|
(2) |
(2) |
(4) |
|
(352) |
(31) |
(383) |
|
eCAPEX |
|
2,921 |
166 |
3,087 |
|
2,807 |
347 |
3,154 |
Appendix 4: key performance
indicators
|
In thousand, at the end of the period |
|
June 30
2024 |
|
June 30
2023 |
|
Number of convergent customers |
|
9,077 |
|
8,949 |
|
Number of mobile accesses (excluding MVNOs)
(1) |
|
245,899 |
|
229,246 |
|
o/w |
Convergent customers mobile accesses |
|
15,602 |
|
15,317 |
|
|
Mobile only accesses |
|
230,297 |
|
213,929 |
|
o/w |
Contract customers mobile accesses |
|
91,065 |
|
82,099 |
|
|
Prepaid customers mobile accesses |
|
154,834 |
|
147,147 |
|
Number of fixed accesses (2) |
|
38,864 |
|
40,178 |
|
|
Fixed Retail accesses |
|
26,700 |
|
27,063 |
|
|
|
Fixed Broadband accesses |
|
21,426 |
|
21,012 |
|
|
|
o/w |
Very high‑speed broadband fixed accesses |
|
13,669 |
|
11,995 |
|
|
|
|
Convergent customers fixed accesses |
|
9,077 |
|
8,949 |
|
|
|
|
Fixed accesses only |
|
12,349 |
|
12,063 |
|
|
|
Fixed Narrowband accesses |
|
5,274 |
|
6,051 |
|
|
Fixed Wholesale accesses |
|
12,164 |
|
13,114 |
|
Group total accesses (1+2) |
|
284,763 |
|
269,424 |
|
Data excluding Spain. 2023 data is on a comparable basis and
includes access to the telecom operator VOO acquired in June 2023
by Orange Belgium. |
Key performance indicators (KPI) by country are
presented in the "Orange investors data book Q2 2024" 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.
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).
EBITDAaL or “EBITDA after Leases”: operating
income (i) before depreciation and amortization of fixed assets,
effects resulting from business combinations, 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
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.
Free cash flow all-in (telecoms activities):
Free cash flow all-in from telecom activities corresponds to net
cash provided by operating activities, minus (i) purchases and
sales of property, plant and equipment and intangible assets, net
of the change in the fixed assets payables, (ii) repayments of
lease liabilities and on debts related to financed assets, and
(iii) payments of coupons on subordinated notes. Free cash flow
all-in from telecom activities is not a financial aggregate defined
by IFRS and may not be comparable to similarly-named indicators
used by other companies.
Earnings per share (EPS) – Group share Net
income – Basic: Basic earnings per share are calculated by dividing
(a) net income for the year attributable to the shareholders of the
Group, after deduction of the remuneration net of the tax to
holders of subordinated notes, by (b) the weighted average number
of ordinary shares outstanding during the period.
Return On Capital Employed (ROCE): ROCE (Return
On Capital Employed) from telecoms activities corresponds to Net
Operating Profit After Tax (NOPAT) for the year ended (N) divided
by Net Operating Assets (NOA) for the previous year (N-1).
Net Operating Profit After Tax (NOPAT) for the
year ended (N) corresponds to operating profit (i) after interest
on lease liabilities and on debts related to financed assets, and
(ii) after income tax adjusted for the tax impact of financial
income excluding interest on lease liabilities and on debts related
to financed assets (tax charge calculated on the basis of the
statutory tax rate applicable in France, the tax jurisdiction of
the parent company Orange SA).
Net Operating Assets (NOA) for the previous year
(N-1) correspond to (i) equity and (ii) financial liabilities and
derivative liabilities (non‑current and current), excluding debts
on financed assets, (iii) less financial assets and derivative
assets (non‑current and current), cash and cash equivalents,
including investments in Mobile Financial Services.
ROCE from telecoms activities is not a financial
aggregate defined by IFRS and may not be comparable to
similarly-named indicators used by other companies.
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 Orange Business segment). For the Orange Business
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), (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, and
(iii) equipment sales to other carriers.
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 Orange Business operating segment, (iii) equipment
sales to other carriers, and (iv) 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, percentage changes are
on a year-on-year basis, calculated against the second quarter of
2023 on a comparable basis.
2 Public Switched Telephone Network
3 Orange Spain net income in the first quarter of +209 million
euros was offset by the share of net income of MASORANGE in the
second quarter of -206 million euros.
4 These targets are on a comparable basis and do
not take into account mergers and acquisitions not yet finalized.
They exclude Spain.
5 Excluding M2M and prepaid
- PR Orange H1 2024 Results_FINAL_24072024
Orange (EU:ORA)
Gráfico Histórico do Ativo
De Out 2024 até Nov 2024
Orange (EU:ORA)
Gráfico Histórico do Ativo
De Nov 2023 até Nov 2024
