Orange: Strong 2024 results, 2025 Organic Cash Flow target raised
Press release
Paris, 13 February 2025
Financial results at 31 December 2024
Strong 2024 results, 2025 Organic Cash Flow target
raised
- Orange is accelerating the
implementation of its Lead the Future strategic plan
- 2024 targets fully achieved: EBITDAaL
+2.7% year on year and Organic Cash Flow of 3.4 billion euros
- Orange confirms its 2025 targets and
raises its Organic Cash Flow target to at least 3.6 billion
euros
|
In millions of euros |
|
4Q 2024 |
change
comparable
basis |
change
historical
basis |
|
12M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
10,426 |
0.5 % |
(0.1)% |
|
40,260 |
1.2 % |
1.5 % |
|
EBITDAaL |
|
3,252 |
3.2 % |
1.4 % |
|
12,109 |
2.7 % |
2.7 % |
|
Operating Income |
|
|
|
|
|
5,116 |
14.8 % |
8.1 % |
|
Consolidated net income |
|
|
|
|
|
2,902 |
|
0.3 % |
|
o/w Consolidated net income of continuing operations |
|
|
|
|
|
2,695 |
|
0.2 % |
|
o/w Consolidated net income of discontinued operations (Spain) |
|
|
|
|
|
207 |
|
1.7 % |
|
Net income attributable to owners of the parent
company |
|
|
|
|
|
2,350 |
|
(3.7)% |
|
eCAPEX (excluding licenses) |
|
1,979 |
7.3 % |
(4.1)% |
|
6,425 |
2.7 % |
(5.7)% |
|
o/w Spain |
|
- |
- |
- |
|
166 |
(2.1)% |
(78.0)% |
|
eCAPEX (excluding licenses) excluding Spain |
|
1,979 |
7.3 % |
7.1 % |
|
6,259 |
2.9 % |
3.3 % |
|
EBITDAaL - eCAPEX excluding Spain |
|
1,273 |
(2.6)% |
(6.4)% |
|
5,850 |
2.6 % |
2.1 % |
|
Organic cash flow (telecom activities) |
|
|
|
|
|
3,259 |
|
(11.0)% |
|
Organic cash flow (telecom activities) excl.
Spain |
|
|
|
|
|
3,372 |
|
5.9% |
|
Free cash flow all-in (telecom activities) |
|
|
|
|
|
2,875 |
|
(2.2)% |
|
Free cash flow all-in (telecom activities) excl.
Spain |
|
|
|
|
|
2,992 |
|
19.1 % |
|
Return On Capital Employed (ROCE) (telecom
activities) |
|
|
|
|
|
6.9 % |
|
0.2pt |
Commenting on these results, Christel Heydemann,
Chief Executive Officer of the Orange group, said:
“These results clearly demonstrate the
successful execution of our Lead the Future strategic plan. Group
revenue and EBITDAaL growth, in line with objectives, was rooted in
outstanding operational achievements, strong commercial momentum
across all geographies and continued discipline on cost control.
The creation of MASORANGE in Spain, the successful connectivity of
the Paris Olympic Games and the roll-out of Max-It in Africa are
concrete examples recognized by all.
2024 marked a return to EBITDAaL growth in
France where our excellent network and service quality allowed us
to maintain our leadership position.
The Africa & Middle East region once again
delivered a robust performance, driven by its growth engines,
namely mobile data, fixed broadband, B2B and Orange Money. Orange
now has over 160 million mobile customers and almost
40 million Orange Money customers on the continent. Orange’s
activities are a genuine lever for economic development in these
countries – progress from which the Group also benefits.
Orange Business continued to reposition itself
in line with the growing use of digital technology such as cloud
computing and artificial intelligence. Orange Cyberdefense
maintained its trend of strong revenue growth and positioned itself
as a European leader in cybersecurity for large groups and SMEs,
with its expertise deployed in 130 countries.
Against a backdrop of technological change
characterized by the development of generative AI and its
impressively rapid adoption, Orange is fully playing its part by
integrating this technology into its infrastructure and offering
reliable solutions that are of real use to its customers, partners
and employees.
I welcome the new employment and professional
development agreement, signed with our unions in France on
10 February, which demonstrates the quality of our social
dialogue. This sets out the employment framework for the next three
years and will allow us to train, recruit and support our teams to
best respond to changes in our competitive and technological
environment.
I would like to sincerely thank all Orange
employees for their achievements and their commitment throughout
the year, as well as our customers for the trust they place in us
every day. As we head into the final year of our plan, we are
confident in our ability to meet all our targets, including our
newly upgraded Organic Cash Flow target.”
2024 revenues were 40,260 million
euros, up 1.2% year on year1 (+487 million euros)
thanks to growth in retail services (+2.7% or +794 million
euros) and a smaller decline in wholesale services (-5.2% or
-325 million euros) mainly related to higher
unbundling and civil engineering rates in France in the first
quarter. Other revenues (+6.0% or +59 million euros) offset the
decline in equipment sales (-1.4% or -41 million
euros).
- Africa & Middle
East is the main contributor to this growth, with revenues
up 11.1% (+770 million euros), driven by increases from its
four growth engines (+18.4% in Mobile data, +19.5% in Fixed
broadband, +20.4% for Orange Money and +12.5% in B2B across all
activities).
- Revenues in France
increased 0.4% (+79 million euros) thanks to growth in retail
services excluding PSTN2 (+2.6%), and a smaller decline
in wholesale services (-3.9%).
- Europe declined
(-2.1% or -155 million euros) due to wholesale services
(-13.9% or -131 million euros) and other low-margin activities,
while retail services excluding IT and Integration Services grew
1.3% (+58 million euros).
- The decrease in Orange
Business revenues (-2.1% or -169 million euros) was
again due to the decline in Fixed-only revenues (-8.1% or
-261 million euros). Revenue growth for Orange Cyberdefense
was dynamic (+11.2% or +120 million euros), while IT and
integration services were up slightly (+2.7% or +102 million
euros) in a complex IT market.
- 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 (+1.0%), as
well as its commercial momentum in mobile contracts and very
high-speed fixed broadband accesses. Mobile
services had 253.0 million accesses worldwide (+7.1%)
including 94.6 million contracts (+7.8%). Fixed
services had 38.3 million accesses worldwide (-3.2%)
of which 14.6 million were very high-speed broadband accesses,
an area of continued solid growth (+13.5%).
In line with the target of slight growth in 2024,
Group EBITDAaL was 12,109 million euros, up 2.7%
year on year (+322 million euros) having accelerated steadily
throughout year to reach +3.2% in the fourth quarter.
EBITDAaL from telecom activities reached
12,227 million euros (+2.6%).
In France, a return to EBITDAaL growth was
confirmed, after accelerating in the second half (+0.6% following
+0.3% in H1, resulting in +0.5% for the year). Africa & Middle
East (+13.1%) and Europe (+3.9%) performed very well, while Orange
Business maintained its improving EBITDAaL trend (-6.0% in H2
following -11.3% in H1, leading to -8.4% for the year).
Operational efficiency is a major priority, and the
Group achieved two-thirds of its Efficiency program objective (i.e.
around 400 million euros in savings out of a target of 600 million
euros in 20253) and is implementing new measures in
three areas: operational efficiency (a new agreement on the French
Part-Time for Seniors plan was signed on 10 February), procurement
optimization and the use of artificial intelligence where more than
one hundred and fifty operational use cases generated nearly 200
million euros in value in 2024.
eCAPEX, which was in line with the
Group’s target of around 15% in 2024, was 6,259 million euros, up
2.9% (+174 million euros), representing 15.5% of revenue. The main
contributor to this increase was Africa & Middle East (+9.9% or
+119 million euros), in support of growth. At 31 December 2024,
Orange had 60.1 million households connectable to FTTH
worldwide (up 9.3% year on year) and the FTTH customer base was
13.5 million (up +14.3% year on year).
Operating income rose 14.8% (+661
million euros) to 5,116 million euros, due to the increase in
EBITDAaL and the decrease in expenses related to the Part-Time for
Seniors plans and restructuring costs, offset by a decrease in
gains on the disposal of securities and activities linked to the
sale of OCS and Orange Studio and the Orange Bank loan
portfolio.
Consolidated net income was stable
at 2,902 million euros (+0.3% or +10 million euros4).
Spanish activities contributed -48 million euros to net
income5.
Net income attributable to owners of the
parent company came to 2,350 million euros. Earnings per
share (EPS) stood at 0.82 euros.
At 31 December 2024, organic cash flow from
telecom activities excluding Spain was 3,372 million
euros, in line with the target of at least 3.3 billion euros by the
end of 2024. This 5.9% improvement in cash generation year on year
(+189 million euros) is mainly due to improvement in the “EBITDAaL
– eCAPEX” indicator for telecom activities (+87 million euros on a
historical basis) and lower tax expense payments (+77 million
euros).
Free cash flow all-in6
excluding Spain totaled 2,992 million euros, up 19.1% year on year,
thanks to growth in organic cash flow and the phasing of telecom
license payments.
Net financial debt, which stood at
22,482 million euros at 31 December 2024, was down by 4,520 million
euros compared to 31 December 2023, thanks to the 4,461 million
euros in income from the creation of the MASORANGE joint venture in
Spain. The ratio of “net financial debt to EBITDAaL from telecom
activities” fell to 1.84x at 31 December 2024, in line with the
target of a ratio of around 2x in the medium term. The liquidity
position of the telecom activities was solid at 17.4 billion euros
and the average cost of gross debt was 3.03%.
Return on capital employed7
(ROCE) was 6.9%, an improvement of 100 basis
points in two years.
Financial objectives
The Group achieved all its objectives for 2024
and increased its 2025 financial objectives, which were presented
at the Capital Market Day on 16 February 2023.
In 2025, Orange aims to achieve the
following financial objectives:
- EBITDAaL growth of
around 3%
- Discipline on
eCAPEX in line with the Capital Market Day
- Organic cash flow
from telecom activities of at least 3.6 billion euros, an increase
compared to the Capital Market Day target of 3.58
billion euros
- Net debt/EBITDAaL
ratio from telecom activities unchanged at around 2x in the medium
term
Payment of a dividend of 0.75 euros per share in
respect of the 2024 fiscal year will be proposed to the Annual
Shareholders’ Meeting in 2025. For fiscal year
2025, Orange has set a dividend floor of 0.75 euros per
share.
Sustainability objectives
The current scores awarded by ESG rating agencies
are strong: MSCI: A; Sustainalytics: moderate risk; ISS: Prime B-;
EcoVadis: Platinum.
In terms of the environment, the
Group has exceeded its target of reducing its scopes 1
and 2 GHG emissions by 30% in 2025 compared to 2015,
two years ahead of schedule, with a 37.4% decrease in emissions in
2023 and a 38.6% decrease in 2024.
With an 11% reduction in emissions in 2024 on
scope 3, the Group is on track to achieving the
target of -14% in 2025 compared with 2018.
As for digital inclusion, the
Group reached its target of 2.5 million beneficiaries of support
and training to digital between 2021 and 2025, one year ahead of
schedule.
With regard to diversity, the
Group exceeded its target of 35% women in management networks, one
year ahead of schedule, reaching 35.6%, an increase of 1.5
points.
___________________________________________________________________________
The Board of Directors of Orange SA met
on 12 February 2025 and reviewed the consolidated financial
results at 31 December 20249.
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 |
|
4Q 2024 |
change
comparable
basis |
change
historical
basis |
|
12M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
4,567 |
(0.6)% |
(0.7)% |
|
17,798 |
0.4 % |
0.4 % |
|
Retail services (B2C+B2B) |
|
2,838 |
1.1 % |
1.0 % |
|
11,303 |
1.4 % |
1.3 % |
|
Convergence |
|
1,335 |
3.3 % |
3.1 % |
|
5,268 |
4.3 % |
4.0 % |
|
Mobile-only |
|
582 |
(1.4)% |
(1.3)% |
|
2,347 |
(0.9)% |
(0.7)% |
|
Fixed-only |
|
921 |
(0.5)% |
(0.5)% |
|
3,689 |
(1.0)% |
(1.0)% |
|
Wholesale |
|
1,081 |
(3.9)% |
(3.9)% |
|
4,337 |
(3.9)% |
(3.9)% |
|
Equipment sales |
|
439 |
(5.4)% |
(4.5)% |
|
1,419 |
0.6 % |
1.8 % |
|
Other revenues |
|
208 |
4.6 % |
1.8 % |
|
738 |
13.4 % |
10.4 % |
|
EBITDAaL |
|
|
|
|
|
6,393 |
0.5 % |
0.5 % |
|
EBITDAaL / Revenues |
|
|
|
|
|
35.9 % |
0.0 pt |
0.0 pt |
|
Operating Income |
|
|
|
|
|
3,289 |
10.9 % |
10.9 % |
|
eCAPEX |
|
|
|
|
|
3,101 |
2.1 % |
2.1 % |
|
eCAPEX / Revenues |
|
|
|
|
|
17.4 % |
0.3 pt |
0.3 pt |
Return to EBITDAaL growth
With annual revenues of 17,798
million euros, France posted growth of 0.4% (+79 million euros)
year on year. Growth in retail services (+1.4% or +159 million
euros), other revenues (+13.4% or +87 million euros) and equipment
sales (+0.6% or +9 million euros) offset the expected decline in
wholesale services (-3.9% or -176 million euros), which was
mitigated by higher unbundling and civil engineering rates in the
first quarter. Growth in retail services excluding PSTN of +2.6%
(+276 million euros) is fully in line with the Lead the Future
target of 2% to 4% between 2022 and 2025.
In the fourth quarter, Orange once
again demonstrated the effectiveness of its commercial strategy
with solid net additions and confirmed its leadership with the best
churn rates and NPS in the market. In the fourth quarter,
convergent net additions returned to growth (+1,000) and convergent
ARPO was 78.0 euros (almost +4% year on year), generating growth of
3.3% in convergent services. Mobile net additions were
+118,00010, with a churn rate of 14.4%, while fixed
broadband net additions were +10,000, with fiber retaining its
excellent momentum (+292,000) and fixed ARPO on the rise. At 31
December 2024, 40.3 million households were connectable to
Orange fiber, representing more than 90% of French households.
Revenues fell slightly, down 0.6% year on year (-29
million euros), mainly due to equipment sales
(-5.4% or -25
million euros).
EBITDAaL for 2024 was 6,393
million euros, up 0.5%.
eCAPEX rose slightly due to a
buy-back of financed assets (set-top box).
In 2025, France is aiming for
slightly better EBITDAaL growth than in 2024.
Europe
|
In millions of euros |
|
4Q 2024 |
change
comparable
basis |
change
historical
basis |
|
12M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
1,888 |
(2.3)% |
(1.1)% |
|
7,101 |
(2.1)% |
3.1 % |
|
Retail services (B2C+B2B) |
|
1,311 |
0.7 % |
2.0 % |
|
5,089 |
0.6 % |
7.0 % |
|
Convergence |
|
363 |
7.9 % |
10.0 % |
|
1,423 |
7.2 % |
19.2 % |
|
Mobile-only |
|
542 |
(0.3)% |
0.3 % |
|
2,180 |
(0.2)% |
1.4 % |
|
Fixed-only |
|
248 |
(1.2)% |
(0.9)% |
|
991 |
(3.2)% |
9.6 % |
|
IT & Integration services |
|
158 |
(7.2)% |
(3.9)% |
|
494 |
(5.6)% |
(2.4)% |
|
Wholesale |
|
202 |
(19.1)% |
(18.6)% |
|
814 |
(13.9)% |
(11.5)% |
|
Equipment sales |
|
330 |
0.4 % |
1.4 % |
|
1,049 |
(2.6)% |
0.2 % |
|
Other revenues |
|
44 |
(14.0)% |
(12.7)% |
|
150 |
(14.7)% |
(10.7)% |
|
EBITDAaL |
|
|
|
|
|
1,950 |
3.9 % |
8.9 % |
|
EBITDAaL / Revenues |
|
|
|
|
|
27.5 % |
1.6 pt |
1.5 pt |
|
Operating Income |
|
|
|
|
|
369 |
26.7 % |
(30.7)% |
|
eCAPEX |
|
|
|
|
|
1,336 |
1.0 % |
(27.0)% |
|
o/w excluding Spain |
|
|
|
|
|
1,170 |
1.5 % |
8.8 % |
|
eCAPEX / Revenues excluding Spain |
|
|
|
|
|
16.5 % |
0.6 pt |
0.9 pt |
|
o/w Spain |
|
|
|
|
|
166 |
(2.1)% |
(78.0)% |
Strong EBITDAaL growth
Annual revenues in
Europe fell 2.1% (-155 million euros). The growth
in retail services (+0.6% or +29 million euros) was driven by the
good performance of Convergence (+7.2% or +96 million euros),
linked to growth in the very high-speed fixed broadband customer
base, which amounted to 3.7 million FTTH and cable customers at 31
December 2024, up 10.0% year on year. Other lower-margin revenues
were down: wholesale services by 13.9% (-131 million euros) due to
the regulatory decrease in call termination rates and international
traffic, IT and integration services by 5.6% (-29 million euros),
equipment sales by 2.6% (-28 million euros) and other revenues by
14.7% (-26 million euros).
In the fourth quarter, revenues
fell 2.3% (-44 million euros) due to the decline in wholesale
services (-19.1% or -48 million euros) and other
revenues (-14.0% or -7 million euros). The good performance of
retail services (+0.7% or +10 million euros) was driven by
Convergence (+7.9% or +27 million euros) but adversely affected by
IT and integration services (-7.2% or -12 million euros).
The improvement in mobile and fixed broadband churn
rates, as well as exceptional net additions of +141,000 in mobile,
+46,000 in very high-speed fixed broadband (of which +95,000 on
fiber) and +41,000 in convergent services, demonstrate the
excellent commercial performance.
EBITDAaL rose 3.9% (or 74 million
euros) thanks to growth in Poland (+4.2% or 31 million euros) and
Belgium & Luxembourg (+10.1% or 50 million euros). The
1.6-point improvement in the EBITDAaL margin stemmed from price
increases, operational efficiency programs and synergies related to
the integration of VOO in Belgium.
The increase in eCAPEX of 1.5%
(+17 million euros) achieved by Poland (+17.1% or +62 million
euros) and Belgium & Luxembourg (+1.4% or +5 million euros) was
partially offset by Central Europe (-11.6% or -50 million
euros).
In line with this trend, Europe expects to deliver
low single-digit EBITDAaL growth in 2025.
Africa & Middle East
|
In millions of euros |
|
4Q 2024 |
change
comparable
basis |
change
historical
basis |
|
12M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
2,023 |
12.6 % |
8.5 % |
|
7,683 |
11.1 % |
7.4 % |
|
Retail services (B2C+B2B) |
|
1,831 |
13.8 % |
10.4 % |
|
6,936 |
12.2 % |
9.1 % |
|
Mobile-only |
|
1,552 |
12.5 % |
9.0 % |
|
5,904 |
11.3 % |
8.2 % |
|
Fixed-only |
|
252 |
17.9 % |
15.2 % |
|
955 |
15.4 % |
12.8 % |
|
IT & Integration services |
|
27 |
76.6 % |
75.3 % |
|
77 |
44.8 % |
43.2 % |
|
Wholesale |
|
156 |
1.4 % |
(8.2)% |
|
612 |
0.5 % |
(8.1)% |
|
Equipment sales |
|
27 |
8.3 % |
2.0 % |
|
96 |
13.1 % |
6.7 % |
|
Other revenues |
|
10 |
(3.7)% |
(13.5)% |
|
39 |
9.3 % |
(3.7)% |
|
EBITDAaL |
|
|
|
|
|
2,979 |
13.1 % |
8.9 % |
|
EBITDAaL / Revenues |
|
|
|
|
|
38.8 % |
0.7 pt |
0.5 pt |
|
Operating Income |
|
|
|
|
|
1,966 |
16.3 % |
12.0 % |
|
eCAPEX |
|
|
|
|
|
1,324 |
9.9 % |
6.0 % |
|
eCAPEX / Revenues |
|
|
|
|
|
17.2 % |
(0.2 pt) |
(0.2 pt) |
Outstanding double-digit EBITDAaL
growth
Africa & Middle East recorded a marked increase
of 11.1% (+770 million euros) in annual revenues
with double-digit growth (+12.6%) in the fourth
quarter, for the seventh consecutive quarter. The segment
also posted remarkable revenue growth of 8.5% on a historical basis
in the fourth quarter.
This performance was once again underpinned by the
continued rapid growth in retail services (+12.2% over the year)
thanks to increases over the year from the four growth engines,
namely mobile data (+18.4%), fixed broadband (+19.5%), Orange Money
(20.4%) and B2B across all activities (+12.5%), with favorable
volume and value effects.
The mobile customer base reached
161.0 million, a year-on-year increase of 7.9%, with
accelerated growth in the Mobile 4G customer base (+25.3%) and a
3.9% increase in average mobile ARPO in the fourth quarter. The
fixed broadband customer base rose 18.7% to 4.0 million.
Lastly, Orange Money had 39.7 million active customers, up
16.6%.
For the fifth year running, Africa & Middle
East posted double-digit EBITDAaL growth (+13.1%),
which continued to outpace revenue growth thanks to strict cost
control. The EBITDAaL margin thus rose by 0.7 points to 38.8%.
The EBITDAaL – eCAPEX indicator
increased 11.4% over the year in historical terms, making a
significant contribution to the Group’s organic cash flow
generation.
As a result of these excellent results, the Africa
& Middle East segment is confident in its ability to achieve at
least high single-digit EBITDAaL growth in
2025.
Orange Business
|
In millions of euros |
|
4Q 2024 |
change
comparable
basis |
change
historical
basis |
|
12M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
1,998 |
(4.1)% |
(4.0)% |
|
7,777 |
(2.1)% |
(1.9)% |
|
Fixed-only |
|
723 |
(8.7)% |
(8.6)% |
|
2,958 |
(8.1)% |
(8.1)% |
|
Voice |
|
188 |
(11.8)% |
(11.8)% |
|
773 |
(13.2)% |
(13.2)% |
|
Data |
|
535 |
(7.5)% |
(7.4)% |
|
2,186 |
(6.2)% |
(6.2)% |
|
IT & Integration services |
|
1,015 |
(1.1)% |
(0.9)% |
|
3,828 |
2.7 % |
3.3 % |
|
Mobile |
|
259 |
(2.2)% |
(2.2)% |
|
990 |
(1.0)% |
(1.0)% |
|
Mobile-only |
|
188 |
9.1 % |
9.1 % |
|
716 |
3.2 % |
3.2 % |
|
Wholesale |
|
10 |
(2.0)% |
(2.0)% |
|
40 |
(2.0)% |
(2.0)% |
|
Equipment sales |
|
62 |
(25.7)% |
(25.7)% |
|
235 |
(12.0)% |
(12.0)% |
|
EBITDAaL |
|
|
|
|
|
624 |
(8.4)% |
(8.2)% |
|
EBITDAaL / Revenues |
|
|
|
|
|
8.0 % |
(0.6 pt) |
(0.5 pt) |
|
Operating Income |
|
|
|
|
|
303 |
239.1 % |
229.3 % |
|
eCAPEX |
|
|
|
|
|
323 |
8.1 % |
9.0 % |
|
eCAPEX / Revenues |
|
|
|
|
|
4.1 % |
0.4 pt |
0.4 pt |
EBITDAaL improvement target
achieved
Annual revenues for the Orange
Business segment came to 7,777 million euros, down 2.1% (-169
million euros).
Growth in IT and integration services of 2.7% (+102
million euros) and in Mobile-only revenues (+3.2% or +22 million
euros) did not offset the structural decline in the historical
activities of fixed Voice and Data of -8.1% (-261 million
euros).
Orange Cyberdefense achieved excellent double-digit
growth (+11.2% or +120 million euros), while growth in digital
services was moderate (+2.4%).
In the fourth quarter, revenue
fell by 4.1% (-85 million euros) due to the anticipated decline in
Fixed-only (-8.7% or -68 million euros) and a complex IT market
affecting IT and integration services (-1.1% or -11 million euros).
Orange Cyberdefense continued its excellent performance (+12.0% or
+35 million euros).
The 8.4% decrease in EBITDAaL was
in line with the objective of approximately halving the decline
seen in 2023 (-15.4%).
At the end of November, Orange Business launched
“Live Intelligence”, a range of turnkey generative AI solutions for
all businesses (large groups, mid-caps, SMEs, VSEs) and local
authorities, which are easy to implement and use.
The voluntary departure plan is currently being
rolled out, with the last departures running into 2025.
Given the more complex IT market conditions, the
objective for Orange Business is to continue improving the trend
in 2025, by halving the decrease in EBITDAaL compared with
2024, to achieve stabilization in 2026.
TOTEM
|
In millions of euros |
|
4Q 2024 |
change
comparable
basis |
change
historical
basis |
|
12M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
189 |
8.6 % |
8.6 % |
|
709 |
3.3 % |
3.3 % |
|
Wholesale |
|
189 |
8.6 % |
8.6 % |
|
709 |
3.3 % |
3.3 % |
|
Other revenues |
|
- |
- |
- |
|
- |
- |
- |
|
EBITDAaL |
|
|
|
|
|
367 |
(0.2)% |
(1.5)% |
|
EBITDAaL / Revenues |
|
|
|
|
|
51.7 % |
(1.8 pt) |
(2.5 pt) |
|
Operating Income |
|
|
|
|
|
250 |
1.3 % |
(0.7)% |
|
eCAPEX |
|
|
|
|
|
157 |
10.7 % |
8.9 % |
|
eCAPEX / Revenues |
|
|
|
|
|
22.1 % |
1.5 pt |
1.1 pt |
The TowerCo Totem posted annual
revenues of 709 million euros, up 3.3% (+23 million euros)
thanks to a 1.2% increase in hosting revenues, of which +9.7%
excluding Orange France and MASORANGE.
The number of sites was 27,020 at
31 December 2024 (down 272 sites), with a tenancy ratio of 1.42
co-tenants per site, up 2 points year on year and in line with the
target of 1.5 co-tenants by 2026.
EBITDAaL fell 0.2% (-0.7 million
euros) due to exceptional items, while the 10.7% (+15 million
euros) increase in eCAPEX was due to business
development.
International Carriers & Shared
Services
|
In millions of euros |
|
4Q 2024 |
change
comparable
basis |
change
historical
basis |
|
12M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
312 |
(10.6)% |
(14.4)% |
|
1,292 |
(8.3)% |
(12.6)% |
|
Wholesale |
|
209 |
(11.3)% |
(11.3)% |
|
851 |
(13.4)% |
(13.4)% |
|
Other revenues |
|
103 |
(9.0)% |
(20.2)% |
|
441 |
3.3 % |
(11.2)% |
|
EBITDAaL |
|
|
|
|
|
(85) |
ns |
(182.4)% |
|
EBITDAaL / Revenues |
|
|
|
|
|
(6.6)% |
(6.3 pt) |
(4.6 pt) |
|
Operating Income |
|
|
|
|
|
(666) |
(29.3)% |
(18.3)% |
|
eCAPEX |
|
|
|
|
|
183 |
(16.2)% |
(18.7)% |
|
eCAPEX / Revenues |
|
|
|
|
|
14.2 % |
(1.3 pt) |
(1.1 pt) |
Revenues from wholesale services
fell 13.4% year on year (-131 million euros), mainly as a result of
the downward trend in voice traffic and the refocusing on
higher-value activities, as well as the counter-effect of the sale
of rights of use for a submarine cable in 2023.
The 3.3% growth in other revenues
over the year (+14 million euros) was due in particular to the good
performance of Sofrecom’s services in the first half and the
increase in revenues from patents and intellectual property in the
Group’s innovation division.
EBITDAaL deteriorated (-81 million
euros compared with 2023) due to exceptional items and a base
effect linked to the sale of a submarine cable last year.
Mobile Financial Services
|
In millions of euros |
|
|
|
|
|
12M 2024 |
change
comparable
basis |
change
historical
basis |
|
Net Banking Income (NBI) |
|
|
|
|
|
46 |
(35.0)% |
(69.2)% |
|
Cost of bank credit risk |
|
|
|
|
|
(9) |
(39.4)% |
(85.4)% |
|
Operating Income |
|
|
|
|
|
(396) |
(25.6)% |
(29.3)% |
|
eCAPEX |
|
|
|
|
|
1 |
(95.3)% |
(95.6)% |
Orange Bank continued with its plan to wind up its
activities with the goal of returning its banking license and
continued to implement its job protection plan.
Operating income included restructuring costs (59
million euros recorded in 2024) and a capital loss of 196 million
euros from the disposal of Orange Bank’s loan portfolios in France
and Spain as part of the wind-up of Orange Bank’s operations in
Europe.
In France, Orange Bank no longer holds any customer
loans, all customer accounts have been closed and the remaining
balances are being returned.
In Spain, Orange Bank no longer carries out any
operational activities, with the exception of its regulatory
obligations.
MASORANGE11
In Spain, annual revenues
increased 1.5% with retail services growth of 1.2%. The joint
venture maintained its leadership position in terms of acquisitions
with +301,000 additional lines year on year12 for Mobile
and +168,000 additional lines year on year for fiber. Managing the
value of the customer base enabled continued growth in convergent
ARPU throughout the year.
In the fourth quarter, revenues
rose by 4.6%, driven by 1.4% growth in retail services and 11.6%
growth in equipment sales.
Double-digit growth in adjusted
EBITDA of 10.8% benefited from higher revenues and the
impact of synergies. The share of net income in
Orange’s financial statements was a loss of -255 million euros.
MASORANGE achieved around 120 million euros in
synergies out of the approximately 100 million
euros targeted in 2024 and has confirmed its ambition to achieve at
least 500 million euros over the first four years. By 2025,
MASORANGE is targeting cumulative synergies in excess of 300
million euros, representing more than half of the expected
synergies. MASORANGE is targeting slight revenue growth and
double-digit growth in adjusted EBITDA minus net recurring
CAPEX.
Calendar of upcoming events
24 April 2025 - Publication of
First Quarter 2025 financial results
Contacts
press:
Frédéric Texier
fred.texier@orange.com
Tom Wright
tom.wright@orange.com
Flaminia Le Maignan
flaminia.lemaignan@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. Forward-looking statements are statements
that are not historical facts. These statements include, without
limitation, projections and estimates and their underlying
assumptions, statements regarding plans, objectives, intentions and
expectations with respect to future financial results and other
events, prospects and statements regarding future performance.
Although we believe these statements are based on reasonable
assumptions, they are subject to numerous risks, uncertainties and
assumptions, including matters not yet known to us or not currently
considered material by us, and which could cause actual results and
developments to differ materially from those expressed in, or
implied or projected by, such forward-looking information and
statements. 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, uncertainties and
assumptions that could affect our financial results include those
described or identified in any public documents filed with the
French Financial Markets Authority (AMF) by Orange, including the
Universal Registration Document filed on 28 March 2024 with the
AMF. In light of these risks, uncertainties and assumptions, you
should not place undue reliance on any forward-looking statements
contained herein. 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, future developments or any other reason.
Appendix 1: financial key
indicators
Quarterly data
|
In millions of euros |
|
4Q 2024 |
4Q 2023
comparable
basis |
4Q 2023
historical
basis |
variation
comparable
basis |
change
historical
basis |
|
Revenues |
|
10,426 |
10,377 |
10,432 |
0.5 % |
(0.1)% |
|
France |
|
4,567 |
4,596 |
4,600 |
(0.6)% |
(0.7)% |
|
Europe |
|
1,888 |
1,932 |
1,910 |
(2.3)% |
(1.1)% |
|
Africa & Middle East |
|
2,023 |
1,797 |
1,865 |
12.6 % |
8.5 % |
|
Orange Business |
|
1,998 |
2,083 |
2,081 |
(4.1)% |
(4.0)% |
|
Totem |
|
189 |
174 |
174 |
8.6 % |
8.6 % |
|
International Carriers & Shared Services |
|
312 |
348 |
364 |
(10.6)% |
(14.4)% |
|
Intra-Group eliminations |
|
(550) |
(554) |
(562) |
|
|
|
EBITDAaL (1) |
|
3,252 |
3,151 |
3,206 |
3.2 % |
1.4 % |
|
o/w Telecom activities |
|
3,284 |
3,186 |
3,239 |
3.1 % |
1.4 % |
|
As % of revenues |
|
31.5 % |
30.7 % |
31.0 % |
0.8 pt |
0.5 pt |
|
o/w Mobile Financial Services |
|
(33) |
(35) |
(33) |
7.1 % |
(0.1)% |
|
eCAPEX |
|
1,979 |
1,845 |
2,065 |
7.3 % |
(4.1)% |
|
o/w excluding Spain |
|
1,979 |
1,845 |
1,847 |
7.3 % |
7.1 % |
|
o/w Telecom activities |
|
1,978 |
1,841 |
1,844 |
7.4 % |
7.3 % |
|
As % of revenues |
|
19.0 % |
17.7 % |
17.7 % |
1.2 pt |
1.3 pt |
|
o/w Mobile Financial Services |
|
1 |
3 |
4 |
(71.6)% |
(74.8)% |
|
o/w Spain |
|
- |
- |
217 |
- |
- |
|
EBITDAaL - eCAPEX excluding Spain |
|
1,273 |
1,307 |
1,359 |
(2.6)% |
(6.4)% |
(1) EBITDAaL presentation adjustments are described in Appendix
2. |
|
|
|
|
|
|
31 December data
|
In millions of euros |
|
12M 2024 |
12M 2023
comparable
basis |
12M 2023
historical
basis |
variation
comparable
basis |
change
historical
basis |
|
Revenues |
|
40,260 |
39,772 |
39,678 |
1.2 % |
1.5 % |
|
France |
|
17,798 |
17,719 |
17,730 |
0.4 % |
0.4 % |
|
Europe |
|
7,101 |
7,256 |
6,889 |
(2.1)% |
3.1 % |
|
Africa & Middle East |
|
7,683 |
6,913 |
7,152 |
11.1 % |
7.4 % |
|
Orange Business |
|
7,777 |
7,946 |
7,927 |
(2.1)% |
(1.9)% |
|
Totem |
|
709 |
686 |
686 |
3.3 % |
3.3 % |
|
International Carriers & Shared Services |
|
1,292 |
1,409 |
1,478 |
(8.3)% |
(12.6)% |
|
Intra-Group eliminations |
|
(2,100) |
(2,158) |
(2,185) |
|
|
|
EBITDAaL (1) |
|
12,109 |
11,786 |
11,789 |
2.7 % |
2.7 % |
|
o/w Telecom activities |
|
12,227 |
11,919 |
11,911 |
2.6 % |
2.7 % |
|
As % of revenues |
|
30.4 % |
30.0 % |
30.0 % |
0.4 pt |
0.4 pt |
|
France |
|
6,393 |
6,363 |
6,364 |
0.5 % |
0.5 % |
|
Europe |
|
1,950 |
1,876 |
1,791 |
3.9 % |
8.9 % |
|
Africa & Middle East |
|
2,979 |
2,635 |
2,734 |
13.1 % |
8.9 % |
|
Orange Business |
|
624 |
681 |
679 |
(8.4)% |
(8.2)% |
|
Totem |
|
367 |
368 |
372 |
(0.2)% |
(1.5)% |
|
International Carriers & Shared Services |
|
(85) |
(4) |
(30) |
ns |
(182.4)% |
|
o/w Mobile Financial Services |
|
(119) |
(133) |
(122) |
10.5 % |
2.3 % |
|
Operating Income |
|
5,116 |
4,455 |
4,731 |
14.8 % |
8.1 % |
|
o/w Telecom activities |
|
5,511 |
4,769 |
5,037 |
15.6 % |
9.4 % |
|
o/w Mobile Financial Services |
|
(396) |
(315) |
(306) |
(25.6)% |
(29.3)% |
|
Consolidated net income |
|
2,902 |
|
2,892 |
|
0.3 % |
|
Consolidated net income of continuing operations |
|
2,695 |
|
2,688 |
|
0.2 % |
|
Net income attributable to owners of the parent company |
|
2,350 |
|
2,440 |
|
(3.7)% |
|
eCAPEX |
|
6,425 |
6,255 |
6,815 |
2.7 % |
(5.7)% |
|
o/w excluding Spain |
|
6,259 |
6,085 |
6,060 |
2.9 % |
3.3 % |
|
o/w Telecom activities |
|
6,257 |
6,055 |
6,027 |
3.3 % |
3.8 % |
|
As % of revenues |
|
15.5 % |
15.2 % |
15.2 % |
0.3 pt |
0.4 pt |
|
o/w Mobile Financial Services |
|
1 |
31 |
33 |
(95.3)% |
(95.6)% |
|
o/w Spain |
|
166 |
169 |
755 |
(2.1)% |
(78.0)% |
|
EBITDAaL - eCAPEX excluding Spain |
|
5,850 |
5,701 |
5,729 |
2.6 % |
2.1 % |
|
(1) EBITDAaL presentation adjustments are described in Appendix
2. |
|
|
|
|
|
|
|
In millions of euros |
|
December 31
2024 |
December 31
2023 |
|
Organic cash-flow from telecom activities (excluding
Spain) |
|
3,372 |
3,184 |
|
Free cash flow all-in from telecom activities (excluding
Spain) |
|
2,992 |
2,512 |
|
Return On Capital Employed (ROCE) from telecom
activities (4) |
|
6.9 % |
6.7 % |
|
Net financial debt (1)
(3) |
|
22,482 |
27,002 |
|
Ratio of net financial debt / EBITDAaL from telecom
activities (2) (3) |
|
1.84 |
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. |
|
(4) In 2024, the ROCE of telecom activities adjusted for the loss
of exclusive control of Orange Spain and its subsidiaries on 26
March 2024 (calculated with adjusted NOA (i) excluding the NOA of
Orange Spain and its subsidiaries at 31 December 2023 and (ii)
including 50% of the NOA of MASORANGE at 31 December 2024). |
Appendix 2: adjusted data to
income statement items
Quarterly data
|
|
|
4Q 2024 |
|
4Q 2023
historical basis |
|
In millions of euros |
|
Adjusted data |
Presentation adjustments |
Income statement |
|
Adjusted data |
Presentation adjustments |
Income statement |
|
Revenues |
|
10,426 |
- |
10,426 |
|
10,432 |
- |
10,432 |
|
External purchases |
|
(4,504) |
(2) |
(4,506) |
|
(4,618) |
(8) |
(4,626) |
|
Other operating income |
|
292 |
0 |
292 |
|
288 |
- |
288 |
|
Other operating expense |
|
(94) |
(58) |
(152) |
|
(136) |
(42) |
(178) |
|
Labor expenses |
|
(2,089) |
(24) |
(2,112) |
|
(2,084) |
(66) |
(2,151) |
|
Operating taxes and levies |
|
(313) |
3 |
(309) |
|
(225) |
6 |
(219) |
|
Gains (losses) on disposal of fixed assets, investments and
activities |
|
na |
40 |
40 |
|
na |
35 |
35 |
|
Restructuring costs |
|
na |
(10) |
(10) |
|
na |
(396) |
(396) |
|
Depreciation and amortization of financed assets |
|
(42) |
- |
(42) |
|
(36) |
- |
(36) |
|
Depreciation and amortization of right-of-use assets |
|
(355) |
(0) |
(356) |
|
(349) |
(1) |
(349) |
|
Impairment of right-of-use assets |
|
- |
(16) |
(16) |
|
(1) |
(39) |
(40) |
|
Interest expenses on liabilities related to financed assets |
|
(4) |
4 |
na |
|
(5) |
5 |
na |
|
Interest expenses on lease liabilities |
|
(65) |
65 |
na |
|
(60) |
60 |
na |
|
EBITDAaL |
|
3,252 |
3 |
na |
|
3,206 |
(446) |
na |
|
Significant litigation |
|
(46) |
46 |
na |
|
(26) |
26 |
na |
|
Specific labor expenses |
|
(24) |
24 |
na |
|
(74) |
74 |
na |
|
Fixed assets, investments and business portfolio review |
|
40 |
(40) |
na |
|
35 |
(35) |
na |
|
Restructuring program costs |
|
(35) |
35 |
na |
|
(429) |
429 |
na |
|
Acquisition and integration costs |
|
(2) |
2 |
na |
|
(17) |
17 |
na |
|
Interest expenses on liabilities related to financed assets |
|
na |
(4) |
(4) |
|
na |
(5) |
(5) |
|
Interest expenses on lease liabilities |
|
na |
(65) |
(65) |
|
na |
(60) |
(60) |
31 December data
|
|
|
12M 2024 |
|
12M 2023
historical basis |
|
In millions of euros |
|
Adjusted data |
Presentation adjustments |
Income statement |
|
Adjusted data |
Presentation adjustments |
Income statement |
|
Revenues |
|
40,260 |
- |
40,260 |
|
39,678 |
- |
39,678 |
|
External purchases |
|
(16,644) |
(5) |
(16,649) |
|
(16,742) |
(21) |
(16,762) |
|
Other operating income |
|
944 |
26 |
970 |
|
869 |
- |
869 |
|
Other operating expense |
|
(453) |
(67) |
(519) |
|
(389) |
(5) |
(394) |
|
Labor expenses |
|
(8,417) |
(40) |
(8,458) |
|
(8,247) |
(495) |
(8,742) |
|
Operating taxes and levies |
|
(1,770) |
(1) |
(1,771) |
|
(1,672) |
3 |
(1,669) |
|
Gains (losses) on disposal of fixed assets, investments and
activities |
|
na |
(279) |
(279) |
|
na |
90 |
90 |
|
Restructuring costs |
|
na |
(134) |
(134) |
|
na |
(456) |
(456) |
|
Depreciation and amortization of financed assets |
|
(160) |
- |
(160) |
|
(129) |
- |
(129) |
|
Depreciation and amortization of right-of-use assets |
|
(1,383) |
(0) |
(1,383) |
|
(1,342) |
(4) |
(1,346) |
|
Impairment of right-of-use assets |
|
1 |
(49) |
(48) |
|
(1) |
(67) |
(69) |
|
Interest expenses on liabilities related to financed assets |
|
(17) |
17 |
na |
|
(14) |
14 |
na |
|
Interest expenses on lease liabilities |
|
(252) |
252 |
na |
|
(221) |
221 |
na |
|
EBITDAaL |
|
12,109 |
(281) |
na |
|
11,789 |
(721) |
na |
|
Significant litigation |
|
(24) |
24 |
na |
|
30 |
(30) |
na |
|
Specific labor expenses |
|
(40) |
40 |
na |
|
(503) |
503 |
na |
|
Fixed assets, investments and business portfolio review |
|
(279) |
279 |
na |
|
90 |
(90) |
na |
|
Restructuring program costs |
|
(193) |
193 |
na |
|
(526) |
526 |
na |
|
Acquisition and integration costs |
|
(13) |
13 |
na |
|
(48) |
48 |
na |
|
Interest expenses on liabilities related to financed assets |
|
na |
(17) |
(17) |
|
na |
(14) |
(14) |
|
Interest expenses on lease liabilities |
|
na |
(252) |
(252) |
|
na |
(221) |
(221) |
Appendix 3: economic CAPEX to
investments in property, plant and intangible
investment
Quarterly data
|
|
|
4Q 2024 |
|
4Q 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 |
|
2,130 |
- |
2,130 |
|
2,300 |
219 |
2,519 |
|
Financed assets |
|
(39) |
- |
(39) |
|
(44) |
- |
(44) |
|
Proceeds from sales of property, plant and equipment and intangible
assets |
|
(83) |
- |
(83) |
|
(92) |
- |
(92) |
|
Telecommunication licenses |
|
(28) |
- |
(28) |
|
(317) |
(1) |
(318) |
|
eCAPEX |
|
1,979 |
- |
1,979 |
|
1,847 |
217 |
2,065 |
31 December data
|
|
|
12M 2024 |
|
12M 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 |
|
6,663 |
168 |
6,830 |
|
7,275 |
787 |
8,062 |
|
Financed assets |
|
(120) |
- |
(120) |
|
(233) |
- |
(233) |
|
Proceeds from sales of property, plant and equipment and intangible
assets |
|
(251) |
- |
(251) |
|
(292) |
- |
(292) |
|
Telecommunication licenses |
|
(33) |
(2) |
(35) |
|
(689) |
(32) |
(721) |
|
eCAPEX |
|
6,259 |
166 |
6,425 |
|
6,060 |
755 |
6,815 |
Appendix 4: key performance
indicators
|
In thousand, at the end of the period |
|
December 31
2024 |
|
December 31
2023 |
|
Number of convergent customers |
|
9,135 |
|
9,048 |
|
Number of mobile accesses (excluding MVNOs)
(1) |
|
253,004 |
|
236,266 |
|
o/w |
Convergent customers mobile accesses |
|
15,836 |
|
15,507 |
|
|
Mobile only accesses |
|
237,169 |
|
220,759 |
|
o/w |
Contract customers mobile accesses |
|
94,626 |
|
87,793 |
|
|
Prepaid customers mobile accesses |
|
158,378 |
|
148,473 |
|
Number of fixed accesses (2) |
|
38,314 |
|
39,564 |
|
|
Fixed Retail accesses |
|
26,569 |
|
26,864 |
|
|
|
Fixed Broadband accesses |
|
21,896 |
|
21,237 |
|
|
|
o/w |
Very high‑speed broadband fixed accesses |
|
14,594 |
|
12,863 |
|
|
|
|
Convergent customers fixed accesses |
|
9,135 |
|
9,048 |
|
|
|
|
Fixed accesses only |
|
12,761 |
|
12,189 |
|
|
|
Fixed Narrowband accesses |
|
4,673 |
|
5,627 |
|
|
Fixed Wholesale accesses |
|
11,745 |
|
12,700 |
|
Group total accesses (1+2) |
|
291,318 |
|
275,831 |
|
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 Q4 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:
- for continuing
operations, 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);
- and for
discontinued operations, to consolidated net income of discontinued
operations.
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 31 December 2023 on a
comparable basis.
2 Public Switched Telephone Network
3 On a cost base of around 12 billion euros defined at the end of
2022 and after the integration of VOO
4 Data on a historical basis
5 Net income from Orange Spain of +207 million euros in the
1st quarter, offset by MASORANGE’s share of net income
of -255 million euros over nine months
6 Telecom activities
7 In 2024, the ROCE of telecom activities adjusted for the loss of
exclusive control of Orange Spain and its subsidiaries on 26 March
2024 (calculated with adjusted NOA (i) excluding the NOA of Orange
Spain and its subsidiaries at 31 December 2023 and (ii) including
50% of the NOA of MASORANGE at 31 December 2024).
8 Guidance Capital Market Day excluding Spain
9 The audit procedures are being finalized and the audit report
will be issued in March
10 Excluding M2M and prepaid
11 Spain has been deconsolidated since the second quarter
12 Postpaid excluding M2Ms
- PR_ORANGE_FY2024_EN_130225
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