Press release - Orange: Strong third-quarter results, 2024
financial targets confirmed
Press release
Paris, 24 October 2024
Financial results at 30 September 2024
Strong third-quarter results, 2024
financial targets confirmed
- Growth in retail services in France
and Europe
- Outstanding performance in Africa
& Middle East
|
In millions of euros |
|
3Q 2024 |
change
comparable
basis |
change
historical
basis |
|
9M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
9,995 |
1.6 % |
1.0 % |
|
29,834 |
1.5 % |
2.0 % |
|
EBITDAaL |
|
3,345 |
2.7 % |
2.3 % |
|
8,857 |
2.6 % |
3.2 % |
|
eCAPEX (excluding licenses) |
|
1,359 |
(2.5)% |
(14.9)% |
|
4,445 |
0.8 % |
(6.4)% |
|
o/w excluding Spain |
|
1,359 |
(2.5)% |
(3.3)% |
|
4,279 |
0.9 % |
1.6 % |
|
o/w Spain |
|
- |
- |
- |
|
166 |
(2.1)% |
(69.2)% |
|
EBITDAaL - eCAPEX excluding Spain |
|
1,987 |
6.6 % |
6.6 % |
|
4,577 |
4.2 % |
4.7 % |
Commenting on these results, Christel Heydemann,
Chief Executive Officer of the Orange group, said:
“I would like to highlight the remarkable work
of our teams over this quarter, particularly during the Paris 2024
Olympic and Paralympic Games. It is a source of enormous pride for
all of us to have successfully connected this amazing event with
more than 3 billion spectators around the world.
Our third-quarter results confirm our
successful execution of the Lead the Future strategic plan. Our
revenue growth of 1.6% and EBITDAaL growth of 2.7% are in line with
the Group's guidance. These solid results are driven by excellent
sales momentum and growth in retail services across all
geographies.
In France, Orange is reaffirming and
accelerating its leadership position with growing revenues, thanks
to a balanced and disciplined volume/value commercial strategy.
This can be seen in the 2.8%1 growth
in retail services and a marketing strategy focused on convergence
which is the key to value creation.
Africa and the Middle East again delivered a
very good performance with growth of 10.5%. Our innovative Max-It
multi-service digital platform is attracting ever more users.
Orange's activities are a genuine lever for economic development
for Africa, progress from which we also benefit.
The strong third-quarter results demonstrate
the soundness of our strategy, the great competence of our teams
and the role we can play as our customers' trusted operator.”
Orange group revenues rose 1.6% compared with the
third quarter of 20232 (+153 million euros) thanks
to growth in retail services (+2.5% or +185 million euros) and
a smaller decline in wholesale services (-3.3% or -51 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 +10.5% (+182 million euros), driven by a
robust performance in voice as well as increases from its four
growth engines (+18.3% in Mobile data, +17.2% in Fixed broadband,
+20.7% for Orange Money and +5.8% in B2B across all
activities).
- Revenues in
France increased 1.3% (+59 million euros)
thanks to faster growth in retail services excluding
PSTN3 (+2.8%), and a smaller decline in wholesale
services
(-1.9%).
-
Europe declined (-2.1% or -38 million euros)
due to wholesale services (- 15.5% or -37 million
euros) and other low-margin activities, while retail services grew
1.6% (+20 million euros).
- The decrease in
Orange Business revenues (-2.6% or
-50 million euros) was again due to the decline in Fixed-only
revenues (-7.1% or -56 million euros). Revenue growth for
Orange Cyberdefense was dynamic (+9.7%), while IT and integration
services remained stable (+0.5% or +4 million euros) in an IT
market under pressure.
- 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 (+8.5%) including 94.8 million contracts (+11.7%).
Fixed services had 38.7 million accesses
worldwide (-3.0%) of which 14.0 million were very high-speed
broadband accesses, an area of continued solid growth (+13.4%).
Accelerated EBITDAaL growth confirms the
Group’s ability to execute its value strategy.
In line with the target of slight growth in 2024,
and thanks to a solid performance in retail services, Group
EBITDAaL for the third quarter increased +2.7% to
3,345 million euros (following increases of +2.6% in 2Q and
+2.3% in 1Q). EBITDAaL from telecom activities
grew to 3,370 million euros (+2.4%).
eCAPEX amounted to
1,359 million euros in the third quarter of 2024, down -2.5%
year on year. eCAPEX for telecom activities as a percentage of
revenues was 13.6%, in line with the objective of around 15% in
2024. At 30 September 2024, the number of households connectable to
FTTH reached 58.7 million excluding Spain (+10.1%), and the
FTTH customer base was 13.0 million (+14.2%).
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.
___________________________________________________________________________
The Board of Directors of Orange SA met on
23 October 2024 and reviewed the consolidated financial
results at 30 September 2024.
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 |
|
3Q 2024 |
change
comparable
basis |
change
historical
basis |
|
9M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
4,496 |
1.3 % |
1.3 % |
|
13,231 |
0.8 % |
0.8 % |
|
Retail services (B2C+B2B) |
|
2,847 |
1.6 % |
1.5 % |
|
8,466 |
1.5 % |
1.5 % |
|
Convergence |
|
1,333 |
4.6 % |
4.3 % |
|
3,933 |
4.6 % |
4.3 % |
|
Mobile-only |
|
589 |
(0.8)% |
(0.6)% |
|
1,765 |
(0.7)% |
(0.5)% |
|
Fixed-only |
|
925 |
(0.9)% |
(0.9)% |
|
2,767 |
(1.1)% |
(1.1)% |
|
Wholesale |
|
1,110 |
(1.9)% |
(1.9)% |
|
3,256 |
(3.9)% |
(3.9)% |
|
Equipment sales |
|
359 |
1.5 % |
2.7 % |
|
980 |
3.6 % |
5.0 % |
|
Other revenues |
|
179 |
19.9 % |
16.7 % |
|
530 |
17.3 % |
14.2 % |
Robust performance again supported by
increased retail services and a smaller decline in
wholesale
With quarterly revenues of
4,496 million euros, France recorded growth of 1.3% year on
year (+59 million euros) thanks to the increase in retail
services (+1.6% or +45 million euros) and other revenues
(+19.9% or +30 million euros). The decline in wholesale
services (-1.9% or - 21 million euros) continued,
albeit at a slower pace, mainly due to the seasonal nature of
visitor roaming. The growth in retail services excluding fixed-only
narrowband services (PSTN) was 2.8% (+74 million euros),
supported by a good commercial performance.
France continued to improve its performance thanks
to a targeted and disciplined sales strategy. France capitalized on
the strength of its customer base, the recognized quality of its
network, as evidenced by the success of the Olympic Games, and its
market-leading Net Promoter Score.
Mobile net additions for the third quarter were
+83,0005, and the churn rate remained moderate (13.8%).
Fixed broadband net additions in the third quarter resumed growth
at +6,000, with Fiber retaining its excellent momentum (+259,000)
and fixed ARPO on the rise. Convergent net additions were slightly
down (-14,000), but this was more than offset by a strong
increase in convergent ARPO which rose to 77.7 euros (up 3.9
euros in a year), leading to growth in convergent services of 4.6%.
At 30 September 2024, 39.5 million households were connectable
to Orange Fiber, representing 90% of French households.
The target of maintaining stable
EBITDAaL in France in 2024 is confirmed.
Europe
|
In millions of euros |
|
3Q 2024 |
change
comparable
basis |
change
historical
basis |
|
9M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
1,744 |
(2.1)% |
(0.3)% |
|
5,212 |
(2.1)% |
4.7 % |
|
Retail services (B2C+B2B) |
|
1,274 |
1.6 % |
0.4 % |
|
3,777 |
0.5 % |
8.9 % |
|
Convergence |
|
361 |
6.8 % |
4.8 % |
|
1,060 |
7.0 % |
22.7 % |
|
Mobile-only |
|
556 |
(0.0)% |
1.1 % |
|
1,639 |
(0.2)% |
1.8 % |
|
Fixed-only |
|
247 |
(3.1)% |
(8.6)% |
|
743 |
(3.8)% |
13.6 % |
|
IT & Integration services |
|
110 |
4.4 % |
6.1 % |
|
336 |
(4.8)% |
(1.7)% |
|
Wholesale |
|
204 |
(15.5)% |
(14.0)% |
|
612 |
(12.0)% |
(8.8)% |
|
Equipment sales |
|
237 |
(5.3)% |
(3.6)% |
|
718 |
(3.9)% |
(0.4)% |
|
Other revenues |
|
30 |
(17.9)% |
- |
|
105 |
(15.0)% |
(9.8)% |
Solid growth in retail
services
Revenues for Europe decreased 2.1%
(-38 million euros) in the third quarter because of the
decline in wholesale services (-15.5% or -37 million euros)
following the regulatory decrease in call termination rates, which
had no effect on EBITDAaL. Accelerated growth in retail services
(+1.6% or +20 million euros) was offset by the decline in
other low-margin activities such as equipment sales (-5.3% or
-13 million euros) and other revenues (-17.9% or
-7 million euros) related in particular to lower energy resale
prices in Poland. Growth in retail services excluding IT and
Integration services (+1.3%) was 0.2 points higher than in the
second quarter (+1.1%). IT and Integration services grew 4.4%.
The good performance of Convergence (+6.8%)
benefited from price increases and growth in the Fixed broadband
customer base, which rose to nearly 3.6 million FTTH and cable
customers, up 9.9% year on year.
Declines in Mobile and Fixed broadband churn, as
well as net additions at an exceptional level of +151,000 in Mobile
(primarily B2C), +63,000 in Fiber and +9,000 in very high-speed
Fixed broadband reflect the excellent commercial performance.
The forecast of low-to-mid single digit
EBITDAaL growth for Europe in 2024 is
confirmed.
Africa & Middle East
|
In millions of euros |
|
3Q 2024 |
change
comparable
basis |
change
historical
basis |
|
9M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
1,918 |
10.5 % |
5.7 % |
|
5,660 |
10.6 % |
7.0 % |
|
Retail services (B2C+B2B) |
|
1,732 |
11.3 % |
7.3 % |
|
5,105 |
11.6 % |
8.7 % |
|
Mobile-only |
|
1,480 |
11.4 % |
7.2 % |
|
4,352 |
10.9 % |
7.9 % |
|
Fixed-only |
|
239 |
13.6 % |
10.0 % |
|
703 |
14.6 % |
12.0 % |
|
IT & Integration services |
|
13 |
(23.3)% |
(24.9)% |
|
50 |
32.1 % |
30.4 % |
|
Wholesale |
|
154 |
(0.4)% |
(10.8)% |
|
456 |
0.2 % |
(8.1)% |
|
Equipment sales |
|
23 |
22.4 % |
11.8 % |
|
69 |
15.1 % |
8.6 % |
|
Other revenues |
|
9 |
52.2 % |
20.1 % |
|
29 |
14.7 % |
0.2 % |
Outstanding growth continues
Africa & Middle East revenues
rose strongly in the third quarter (+182 million euros), with
double-digit growth (+10.5%) for the sixth consecutive quarter.
Africa & Middle East also posted outstanding growth on a
historical basis with revenues up 5.7% in the third quarter.
This performance was underpinned by the continued
rapid growth in retail services (+11.3%) thanks to increases from
the four growth engines of Mobile data (+18.3%), which accelerated
with seven countries up more than 20%, Fixed broadband (+17.2%),
Orange Money (+20.7%) and B2B across all activities (+5.8%).
The Mobile customer base reached
160.1 million, a year-on-year increase of 8.2%, with
accelerated growth in the 4G customer base (+26.1%) and a +3.6%
increase in average Mobile ARPO in the third quarter. The fixed
broadband customer base rose 17.8% to 3.8 million. Lastly,
Orange Money had 37.1 million active customers, up 17.6%.
The target of double-digit
EBITDAaL growth for Africa & Middle East in
2024 is confirmed.
Orange Business
|
In millions of euros |
|
3Q 2024 |
change
comparable
basis |
change
historical
basis |
|
9M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
1,860 |
(2.6)% |
(2.2)% |
|
5,779 |
(1.4)% |
(1.1)% |
|
Fixed-only |
|
733 |
(7.1)% |
(7.0)% |
|
2,235 |
(7.9)% |
(8.0)% |
|
Voice |
|
189 |
(11.6)% |
(11.5)% |
|
585 |
(13.6)% |
(13.6)% |
|
Data |
|
544 |
(5.4)% |
(5.4)% |
|
1,650 |
(5.7)% |
(5.8)% |
|
IT & Integration services |
|
898 |
0.5 % |
1.3 % |
|
2,812 |
4.2 % |
4.9 % |
|
Mobile |
|
229 |
0.8 % |
0.8 % |
|
731 |
(0.6)% |
(0.6)% |
|
Mobile-only |
|
176 |
1.9 % |
1.9 % |
|
528 |
1.3 % |
1.3 % |
|
Wholesale |
|
10 |
(2.0)% |
(2.0)% |
|
30 |
(2.0)% |
(2.0)% |
|
Equipment sales |
|
43 |
(2.7)% |
(2.7)% |
|
173 |
(5.8)% |
(5.8)% |
Good progress on the recovery
plan
Revenues for the Orange Business
segment were 1,860 million euros in the third quarter of 2024,
down 2.6% (-50 million euros) due to a decline in Fixed-only
revenues (-7.1% or -56 million euros), primarily related
to the anticipated decline in voice revenues (-11.6%).
Revenue growth was dynamic for Orange
Cyberdefense (+9.7%), while IT and Integration services were stable
(+0.5% or +4 million euros) in an IT market under
pressure.
Orange Cyberdefense’s expertise in particular has
been recognized by ISG, IDC and Omdia.
The voluntary departure plan is currently being
implemented.
The Orange Business transformation plan is in line
with the objective for the year of halving the decline in
EBITDAaL in 2024 compared to the previous
year.
TOTEM
|
In millions of euros |
|
3Q 2024 |
change
comparable
basis |
change
historical
basis |
|
9M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
172 |
0.8 % |
0.8 % |
|
521 |
1.5 % |
1.5 % |
|
Wholesale |
|
172 |
0.8 % |
0.8 % |
|
521 |
1.5 % |
1.5 % |
|
Other revenues |
|
- |
- |
- |
|
- |
- |
- |
The revenues of the TowerCo TOTEM grew 0.8% over
the quarter due to the increase in hosting activities (+1.7%) and
energy reselling, partly offset by the decrease in revenues from
planning and construction work in France.
International Carriers & Shared
Services
|
In millions of euros |
|
3Q 2024 |
change
comparable
basis |
change
historical
basis |
|
9M 2024 |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
318 |
(4.1)% |
(9.3)% |
|
980 |
(7.6)% |
(12.0)% |
|
Wholesale |
|
215 |
(6.9)% |
(6.9)% |
|
642 |
(14.0)% |
(14.0)% |
|
Other revenues |
|
104 |
2.2 % |
(13.7)% |
|
338 |
7.8 % |
(8.0)% |
Wholesale services revenues decreased 6.9%
(-16 million euros) in the third quarter. 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.
Mobile Financial Services
The plan to discontinue Orange Bank’s activities in
Europe is ongoing:
- in France, the sale of the loan
portfolio has been finalized and the closing of accounts is almost
complete;
- the official request to close the
operation in Spain was filed with the European Central Bank and
Banco de España on 16 September. The transfer of teams and
funds to Banco Cetelem took effect on 1 October.
MASORANGE6
In Spain, revenue increased 1.1% in the third
quarter, with retail services growth of 1.4%.
MASORANGE achieved 85 million euros in synergies of
the about 100 million euros targeted in 2024 and confirms its
ambition to achieve at least 500 million euros over the first four
years.
Calendar of upcoming events
13 February
2025 -
Publication of 2024 financial results
24 April
2025 -
Publication of First Quarter 2025 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 |
|
3Q 2024 |
3Q 2023
comparable
basis |
3Q 2023
historical
basis |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
9,995 |
9,843 |
9,894 |
1.6 % |
1.0 % |
|
France |
|
4,496 |
4,437 |
4,439 |
1.3 % |
1.3 % |
|
Europe |
|
1,744 |
1,782 |
1,749 |
(2.1)% |
(0.3)% |
|
Africa & Middle-East |
|
1,918 |
1,736 |
1,816 |
10.5 % |
5.7 % |
|
Orange Business |
|
1,860 |
1,910 |
1,901 |
(2.6)% |
(2.2)% |
|
Totem |
|
172 |
170 |
170 |
0.8 % |
0.8 % |
|
International Carriers & Shared Services |
|
318 |
332 |
351 |
(4.1)% |
(9.3)% |
|
Intra-Group eliminations |
|
(513) |
(525) |
(532) |
|
|
|
EBITDAaL (1) |
|
3,345 |
3,257 |
3,270 |
2.7 % |
2.3 % |
|
o/w Telecom activities |
|
3,370 |
3,290 |
3,297 |
2.4 % |
2.2 % |
|
As % of revenues |
|
33.7 % |
33.4 % |
33.3 % |
0.3 pt |
0.4 pt |
|
o/w Mobile Financial Services |
|
(24) |
(33) |
(28) |
25.5 % |
11.7 % |
|
eCAPEX |
|
1,359 |
1,394 |
1,597 |
(2.5)% |
(14.9)% |
|
o/w excluding Spain |
|
1,359 |
1,394 |
1,405 |
(2.5)% |
(3.3)% |
|
o/w Telecom activities |
|
1,358 |
1,386 |
1,397 |
(2.0)% |
(2.8)% |
|
As % of revenues |
|
13.6 % |
14.1 % |
14.1 % |
(0.5 pt) |
(0.5 pt) |
|
o/w Mobile Financial Services |
|
0 |
8 |
8 |
(95.7)% |
(95.9)% |
|
o/w Spain |
|
- |
- |
191 |
- |
- |
|
EBITDAaL - eCAPEX excluding Spain |
|
1,987 |
1,864 |
1,864 |
6.6 % |
6.6 % |
|
(1) EBITDAaL presentation adjustments are described in Appendix
2. |
|
|
|
|
|
|
30 September data
|
In millions of euros |
|
9M 2024 |
9M 2023
comparable
basis |
9M 2023
historical
basis |
change
comparable
basis |
change
historical
basis |
|
Revenues |
|
29,834 |
29,395 |
29,246 |
1.5 % |
2.0 % |
|
France |
|
13,231 |
13,123 |
13,130 |
0.8 % |
0.8 % |
|
Europe |
|
5,212 |
5,324 |
4,979 |
(2.1)% |
4.7 % |
|
Africa & Middle-East |
|
5,660 |
5,116 |
5,287 |
10.6 % |
7.0 % |
|
Orange Business |
|
5,779 |
5,863 |
5,846 |
(1.4)% |
(1.1)% |
|
Totem |
|
521 |
513 |
513 |
1.5 % |
1.5 % |
|
International Carriers & Shared Services |
|
980 |
1,060 |
1,114 |
(7.6)% |
(12.0)% |
|
Intra-Group eliminations |
|
(1,549) |
(1,604) |
(1,622) |
|
|
|
EBITDAaL (1) |
|
8,857 |
8,635 |
8,583 |
2.6 % |
3.2 % |
|
o/w Telecom activities |
|
8,943 |
8,733 |
8,672 |
2.4 % |
3.1 % |
|
As % of revenues |
|
30.0 % |
29.7 % |
29.6 % |
0.3 pt |
0.3 pt |
|
o/w Mobile Financial Services |
|
(87) |
(98) |
(90) |
11.7 % |
3.2 % |
|
eCAPEX |
|
4,445 |
4,410 |
4,751 |
0.8 % |
(6.4)% |
|
o/w excluding Spain |
|
4,279 |
4,241 |
4,213 |
0.9 % |
1.6 % |
|
o/w Telecom activities |
|
4,279 |
4,213 |
4,184 |
1.6 % |
2.3 % |
|
As % of revenues |
|
14.3 % |
14.3 % |
14.3 % |
0.0 pt |
0.0 pt |
|
o/w Mobile Financial Services |
|
0 |
27 |
29 |
(98.3)% |
(98.4)% |
|
o/w Spain |
|
166 |
169 |
538 |
(2.1)% |
(69.2)% |
|
EBITDAaL - eCAPEX excluding Spain |
|
4,577 |
4,394 |
4,370 |
4.2 % |
4.7 % |
|
(1) EBITDAaL presentation adjustments are described in Appendix
2. |
|
|
|
|
|
|
Appendix 2: adjusted data to
income statement items
Quarterly data
|
|
|
3Q 2024 |
|
3Q 2023
historical basis |
|
In millions of euros |
|
Adjusted data |
Presentation adjustments |
Income statement |
|
Adjusted data |
Presentation adjustments |
Income statement |
|
Revenues |
|
9,995 |
- |
9,995 |
|
9,894 |
- |
9,894 |
|
External purchases |
|
(4,031) |
0 |
(4,031) |
|
(4,075) |
0 |
(4,075) |
|
Other operating income |
|
212 |
(0) |
212 |
|
199 |
- |
199 |
|
Other operating expense |
|
(112) |
(1) |
(113) |
|
(89) |
(4) |
(93) |
|
Labor expenses |
|
(1,983) |
(8) |
(1,991) |
|
(1,939) |
(164) |
(2,103) |
|
Operating taxes and levies |
|
(294) |
(1) |
(296) |
|
(289) |
(1) |
(291) |
|
Gains (losses) on disposal of fixed assets, investments and
activities |
|
na |
(180) |
(180) |
|
na |
5 |
5 |
|
Restructuring costs |
|
na |
(15) |
(15) |
|
na |
(25) |
(25) |
|
Depreciation and amortization of financed assets |
|
(41) |
- |
(41) |
|
(34) |
- |
(34) |
|
Depreciation and amortization of right-of-use assets |
|
(338) |
0 |
(338) |
|
(333) |
(0) |
(334) |
|
Impairment of right-of-use assets |
|
2 |
- |
2 |
|
(0) |
0 |
- |
|
Interests expenses on liabilities related to financed assets |
|
(4) |
4 |
na |
|
(3) |
3 |
na |
|
Interests expenses on lease liabilities |
|
(61) |
61 |
na |
|
(60) |
60 |
na |
|
EBITDAaL |
|
3,345 |
(141) |
na |
|
3,270 |
(126) |
na |
|
Significant litigation |
|
(1) |
1 |
na |
|
(1) |
1 |
na |
|
Specific labor expenses |
|
(8) |
8 |
na |
|
(164) |
164 |
na |
|
Fixed assets, investments and business portfolio review |
|
(180) |
180 |
na |
|
5 |
(5) |
na |
|
Restructuring program costs |
|
(15) |
15 |
na |
|
(27) |
27 |
na |
|
Acquisition and integration costs |
|
(1) |
1 |
na |
|
(3) |
3 |
na |
|
Interests expenses on liabilities related to financed assets |
|
na |
(4) |
(4) |
|
na |
(3) |
(3) |
|
Interests expenses on lease liabilities |
|
na |
(61) |
(61) |
|
na |
(60) |
(60) |
30 September data
|
|
|
9M 2024 |
|
9M 2023
historical basis |
|
In millions of euros |
|
Adjusted data |
Presentation adjustments |
Income statement |
|
Adjusted data |
Presentation adjustments |
Income statement |
|
Revenues |
|
29,834 |
- |
29,834 |
|
29,246 |
- |
29,246 |
|
External purchases |
|
(12,141) |
(2) |
(12,143) |
|
(12,124) |
(13) |
(12,137) |
|
Other operating income |
|
652 |
26 |
677 |
|
581 |
- |
581 |
|
Other operating expense |
|
(358) |
(9) |
(367) |
|
(253) |
37 |
(216) |
|
Labor expenses |
|
(6,328) |
(17) |
(6,345) |
|
(6,163) |
(429) |
(6,592) |
|
Operating taxes and levies |
|
(1,458) |
(4) |
(1,462) |
|
(1,446) |
(4) |
(1,450) |
|
Gains (losses) on disposal of fixed assets, investments and
activities |
|
na |
(320) |
(320) |
|
na |
55 |
55 |
|
Restructuring costs |
|
na |
(124) |
(124) |
|
na |
(61) |
(61) |
|
Depreciation and amortization of financed assets |
|
(118) |
- |
(118) |
|
(93) |
- |
(93) |
|
Depreciation and amortization of right-of-use assets |
|
(1,028) |
0 |
(1,027) |
|
(993) |
(4) |
(997) |
|
Impairment of right-of-use assets |
|
1 |
(34) |
(32) |
|
- |
(28) |
(28) |
|
Interests expenses on liabilities related to financed assets |
|
(13) |
13 |
na |
|
(10) |
10 |
na |
|
Interests expenses on lease liabilities |
|
(186) |
186 |
na |
|
(162) |
162 |
na |
|
EBITDAaL |
|
8,857 |
(283) |
na |
|
8,583 |
(275) |
na |
|
Significant litigation |
|
22 |
(22) |
na |
|
55 |
(55) |
na |
|
Specific labor expenses |
|
(16) |
16 |
na |
|
(429) |
429 |
na |
|
Fixed assets, investments and business portfolio review |
|
(320) |
320 |
na |
|
55 |
(55) |
na |
|
Restructuring program costs |
|
(158) |
158 |
na |
|
(97) |
97 |
na |
|
Acquisition and integration costs |
|
(11) |
11 |
na |
|
(31) |
31 |
na |
|
Interests expenses on liabilities related to financed assets |
|
na |
(13) |
(13) |
|
na |
(10) |
(10) |
|
Interests expenses on lease liabilities |
|
na |
(186) |
(186) |
|
na |
(162) |
(162) |
Appendix 3: economic CAPEX to
investments in property, plant and intangible
investment
Quarterly data
|
|
|
3Q 2024 |
|
3Q 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 |
|
1,433 |
- |
1,433 |
|
1,518 |
191 |
1,709 |
|
Financed assets |
|
(26) |
- |
(26) |
|
(45) |
- |
(45) |
|
Proceeds from sales of property, plant and equipment and intangible
assets |
|
(46) |
- |
(46) |
|
(47) |
- |
(47) |
|
Telecommunication licenses |
|
(3) |
- |
(3) |
|
(21) |
0 |
(21) |
|
eCAPEX |
|
1,359 |
- |
1,359 |
|
1,405 |
191 |
1,597 |
30 September data
|
|
|
9M 2024 |
|
9M 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 |
|
4,533 |
168 |
4,701 |
|
4,975 |
569 |
5,543 |
|
Financed assets |
|
(82) |
- |
(82) |
|
(189) |
- |
(189) |
|
Proceeds from sales of property, plant and equipment and intangible
assets |
|
(167) |
- |
(167) |
|
(200) |
- |
(200) |
|
Telecommunication licenses |
|
(4) |
(2) |
(6) |
|
(372) |
(31) |
(403) |
|
eCAPEX |
|
4,279 |
166 |
4,445 |
|
4,213 |
538 |
4,751 |
Appendix 4: key performance
indicators
|
In thousand, at the end of the period |
|
September 30
2024 |
|
September 30
2023 |
|
Number of convergent customers |
|
9,092 |
|
9,005 |
|
Number of mobile accesses (excluding MVNOs)
(1) |
|
253,011 |
|
233,201 |
|
o/w |
Convergent customers mobile accesses |
|
15,733 |
|
15,444 |
|
|
Mobile only accesses |
|
237,278 |
|
217,757 |
|
o/w |
Contract customers mobile accesses |
|
94,767 |
|
84,815 |
|
|
Prepaid customers mobile accesses |
|
158,245 |
|
148,387 |
|
Number of fixed accesses (2) |
|
38,673 |
|
39,863 |
|
|
Fixed Retail accesses |
|
26,711 |
|
26,958 |
|
|
|
Fixed Broadband accesses |
|
21,645 |
|
21,108 |
|
|
|
o/w |
Very high‑speed broadband fixed accesses |
|
14,088 |
|
12,420 |
|
|
|
|
Convergent customers fixed accesses |
|
9,092 |
|
9,005 |
|
|
|
|
Fixed accesses only |
|
12,553 |
|
12,103 |
|
|
|
Fixed Narrowband accesses |
|
5,067 |
|
5,850 |
|
|
Fixed Wholesale accesses |
|
11,962 |
|
12,905 |
|
Group total accesses (1+2) |
|
291,685 |
|
273,064 |
|
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 Q3 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 Excluding Public Switched Telephone Network
(PSTN)
2 Unless otherwise stated, percentage changes are on a year-on-year
basis, calculated against the third quarter of 2023 on a comparable
basis.
3 Public Switched Telephone Network.
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
6 Deconsolidated since the 2nd quarter
- PR_Orange_Q3_2024_EN_241024
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