Orange reported a very slight increase in turnover of +0.1% to 21.29 billion euros in the first half of 2022, but down 0.4% in the second quarter due to “the base effect of Fiber network co-financing received in the second quarter of 2021”, justifies the group in a press release.
The telecoms group posted a modest increase in EbitdaaL (+0.7%) to 5.93 billion euros, thanks in particular to Africa, the Middle East and Europe, despite the deterioration in the business division.
“Preparing for the future with confidence”
Net income for the consolidated group amounted to 1.47 billion euros over the half-year, up 4.07 billion euros on a historical basis, compared to a net loss of 2.61 billion euros a year earlier .
“In an environment still marked by the health crisis, geopolitical uncertainties and the effects of inflation, Orange once again demonstrated its solidity in the first half of 2022, both in terms of its commercial dynamics and its main financial indicators” , said Christel Heydemann, CEO of the Orange group, following the publication of the results.
“This solid performance allows us to confirm our guidance for the current year, a stepping stone towards achieving our 2023 commitments. It also allows us to prepare for the future with confidence and responsibility for the development of our next plan. strategy, which will be unveiled in early 2023,” she continued. Orange thus confirms its financial objectives for 2022 with an EBITDAaL up 2.5 to 3%.
An “extremely competitive” telecom market, according to Christel Heydemann
The fall in turnover over the quarter just ended is more marked in France (-2.7%) than in Europe (-0.9%), even if Orange is achieving a solid growth of 1.4% in retail services”, specifies the group. The figures for Europe are on the rise, thanks to increases in Poland (+3.4%) and Belgium (+4%).
In Spain, the operator posted a drop of 4% over the half-year. The recent deal with MasMovil should change the situation in 2023, hopes the French operator.
Furthermore, the Business segment was down -1.1%. Orange emphasizes that the “structural decline of the historical Voice and Data activities is greater than the growth drivers of IT & integration services”.
The recovery of the Business sector is “a priority”
Christel Heydemann notes that in France “fiber and 5G continue to arouse the appetite of our customers and contribute to the stabilization of our financial performance”.
And to add that “these solid performances on the consumer market in Europe and in Africa/Middle East compensate for the difficulties which weigh on our Business segment”. For the group, “recovery in this sector is a priority”, maintains the general manager.
“We have suffered in recent quarters from an extremely competitive telecom market and a difficult economic situation. We can be pleased to see increased customer satisfaction and reduced churn rates. Our consumer market revenues as well as our EBITDAaL are improving, and we are on track to return to growth in 2023. In addition, the historic agreement signed last week with MasMovil to combine our activities within ‘a new joint venture gives us a lot of reason to believe in the growth potential in Spain,’ argues Christel Heydemann.