Press Release: Orange - First quarter in line with full-year 2023
targets
Press releaseParis, 26 April 2023
Financial information at 31 March 2023
First quarter in line with full-year
2023 targets
The Group confirms its financial guidance as
presented at the Capital Market Day
In millions of euros |
|
1Q 2023 |
1Q 2022comparablebasis |
1Q 2022historicalbasis |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
10,619 |
10,484 |
10,582 |
1.3 % |
0.3 % |
EBITDAaL |
|
2,590 |
2,576 |
2,620 |
0.5 % |
(1.2)% |
eCAPEX (excluding licenses) |
|
1,493 |
1,570 |
1,610 |
(4.9)% |
(7.2)% |
EBITDAaL -
eCAPEX |
|
1,097 |
1,007 |
1,011 |
9.0 % |
8.6 % |
Orange group revenues grew 1.3%
compared with the first quarter of 20221 (+135 million euros)
thanks to growth in retail services (+2.8% or 219 million
euros), fueled in particular by repricing in Europe and by the
growth driver Africa and Middle East.
- Africa
& Middle East was the main contributor to this growth
with a sharp 9.1% increase in revenues (+141 million euros),
followed by Europe with 3.8% growth
(+102 million euros), driven by Poland (+7.1%) and
Spain, which has confirmed its return to growth
(+2.8%) for the third consecutive quarter.
- Revenues in
France were 1.8% lower (-78 million euros) as
a result of the downward trend in wholesale in line with our
expectations (-7.8%). This was partially offset by the increase in
retail services excluding STN2 (at +2.1%, its low point for the
year). The recent repricing that will be fully effective as of the
second quarter will progressively contribute to the growth in
retail services.
- The slight 0.7%
decrease in Enterprise revenues (-14 million
euros) continued to be driven by the sharp decline in fixed voice
revenues (-11.6%), partially offset by growth in IT &
Integration services revenues (+5.3%). The recovery plan for this
segment is ongoing.
- In terms
of commercial
performance, the Group maintained its leadership
position in convergence, with 11.6 million convergent
customers across Europe (+0.6%), and its commercial
momentum on mobile contracts and very high-speed fixed broadband.
Mobile services had 243.4 million accesses
(+5.0%), including 95.8 million contracts (+8.5%).
Fixed services totaled 45.0 million accesses
(down 2.7%), including 14.7 million very high-speed broadband
accesses, that continued to grow strongly (+14.7%). Fixed
narrowband accesses continued to decline (-14.2%).
At 31 March 2023, Group
EBITDAaL stood at 2,590 million euros, up
0.5%, in line with the target of slight growth in 2023. The
EBITDAaL margin for telecom activities, traditionally lower in the
first quarter, was 24.7% owing to a more severe seasonality effect
this year related to the recognition of operating taxes. The next
few quarters will further benefit from the price increases
introduced in early 2023. EBITDAaL from
telecom activities was 2,625 million euros
(+0.9%).
eCAPEX totaled
1,493 million euros in the first quarter of 2023, a decrease
of 4.9% year on year and in line with the target of a significant
reduction in 2023. The number of households connectable to FTTH
reached 66.6 million (+13.8%) and the FTTH customer base increased
to 14.2 million (+15.1%).
The Group confirms its financial
targets, in particular
those for 20233,
as presented at the Capital Market Day on
16 February:
- Slight growth in
EBITDAaL
- Significant
reduction in eCAPEX
- Organic cash
flow from telecom activities of at least 3.5 billion euros
- Net
debt/EBITDAaL ratio for telecom activities unchanged at around 2x
in the medium term
- Proposed
increase in the dividend for the 2023 financial year to
0.72 euros including an interim dividend of 0.30 euros in
December 2023
Commenting on the publication of these results,
Christel Heydemann, Chief Executive Officer of the Orange group,
said:
“The continued increase in revenues and
EBITDAaL, as well as the decrease in eCapex compared to Q1 2022,
are in line with our objectives for 2023 and reinforce our ambition
for the years to come.
We have started to execute our "Lead the Future"
strategic plan with an even more value-oriented commercial strategy
thanks to the quality of our networks and services which, combined
with our cost controls, allow us to partially offset inflation. Our
performance is once again driven by the remarkable growth in Africa
and the Middle East and our strong value-driven growth in Europe.
This quarter our retail services returned to growth in Spain, a
country that has now seen growth for three consecutive quarters,
and we’ve had double-digit revenue growth in our Orange Money
business in Africa. Both demonstrate the strength of the Group and
our ability to respond to increased competitive pressure. In
France, retail services continue to grow and this should further
accelerate in the second half of the year due to the recent price
increases. Finally, in the Enterprise segment, we are executing our
transformation plan.
I would like to warmly thank all the Orange
teams who strive every day to serve our customers well and are
committed to the deployment of our "Lead the Future" strategic
plan. Together, we will deliver our ambitions in terms of growth
and long-term value creation.”
________________________________________________________________________________
The Board of Directors of Orange SA met on 25
April 2023 to review the consolidated financial results at 31 March
2023.
More detailed information on the Group’s
financial results and performance indicators is available on the
Orange website www.orange.com/en/consolidated-results.
Review by operating
segment
France
In millions of euros |
|
1Q 2023 |
1Q 2022comparablebasis |
1Q 2022historicalbasis |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
4,307 |
4,386 |
4,386 |
(1.8)% |
(1.8)% |
Retail services (B2C+B2B) |
|
2,751 |
2,733 |
2,733 |
0.6 % |
0.6 % |
Convergence |
|
1,238 |
1,204 |
1,204 |
2.8 % |
2.8 % |
Mobile-only |
|
582 |
571 |
571 |
2.0 % |
2.0 % |
Fixed-only |
|
931 |
958 |
958 |
(2.9)% |
(2.9)% |
Wholesale |
|
1,100 |
1,193 |
1,195 |
(7.8)% |
(7.9)% |
Equipment sales |
|
307 |
285 |
285 |
7.7 % |
7.7 % |
Other revenues |
|
149 |
174 |
173 |
(14.2)% |
(13.8)% |
Retail services, which continued to grow
this quarter, will benefit during
the rest of the year from the latest
price increases.
France’s revenues were 1.8% lower at
4,307 million euros in the first quarter of 2023 compared with
the first quarter of 2022. This translated to the decline in
wholesale of 7.8% (-93 million euro), in line with our medium-term
expectations and partially offset by an increase in retail
services.
Retail services revenues were up 0.6%
(+17 million euros) and even rose 2.1% excluding STN. This
growth is expected to accelerate during the rest of the year as a
result of the recent price increases (both for existing customers
and new offers). This will continue to drive convergent ARPO, which
grew 2.2% in the first quarter to more than 72 euros.
All our customers affected by base price increases
have now been informed. As expected, this led to a limited increase
in the mobile churn rate (which reached 12.0% on mobile, +0.8pt
compared to Q1 2022) that weighed on net additions in the first
quarter of this year with +3,0004 for mobile and -21,000 for
fixed-line, but still included very strong volumes for fiber with
+287,000 net sales. The price increases, which will only be fully
effective in the second quarter, will contribute progressively to
revenues during the year.
Lastly, revenues from equipment sales rose 7.7%
(+22 million euros).
Europe
In millions of euros |
|
1Q 2023 |
1Q 2022comparablebasis |
1Q 2022historicalbasis |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
2,739 |
2,637 |
2,648 |
3.8 % |
3.4 % |
Retail services (B2C+B2B) |
|
1,869 |
1,804 |
1,811 |
3.6 % |
3.2 % |
Convergence |
|
726 |
697 |
699 |
4.2 % |
3.8 % |
Mobile-only |
|
718 |
697 |
700 |
3.0 % |
2.6 % |
Fixed-only |
|
308 |
308 |
309 |
0.2 % |
(0.3)% |
IT & Integration services |
|
116 |
103 |
102 |
13.2 % |
14.1 % |
Wholesale |
|
398 |
430 |
432 |
(7.4)% |
(7.8)% |
Equipment sales |
|
426 |
363 |
364 |
17.4 % |
17.0 % |
Other revenues |
|
46 |
40 |
42 |
14.8 % |
9.0 % |
Europe confirms its strong momentum in
recent quarters with accelerated
growth.
Europe revenues grew 3.8% in the first quarter
(+102 million euros) driven by retail services, which rose
3.6% (+64 million euros) thanks to the solid performance by
Convergence and Mobile revenues which benefitted from the rate
increases introduced in all regions in 2022.
Equipment sales also rose sharply by 17.4% year on
year (+63 million euros) while the 7.4% decline in wholesale
services (-32 million euros) was due to the regulatory
reduction in call termination rates which had little impact on
margins.
In addition to the good performance of Spain
(+2.8%), growth in Other European countries (+4.6%) was driven by
Poland (+7.1%).
Indeed Spain confirmed its revenue
growth, up 2.8% (+32 million euros) in the first quarter of
2023, with retail services and equipment sales both returning to
growth, at +1.2% (+9 million euros) and +18% (+27 million
euros), respectively.
In a still highly competitive market, Orange Spain
continued to drive value through higher value-added offers,
combined with a disciplined marketing policy and growth in B2B
activities. This was reflected again this quarter in the 3.5%
improvement in its convergent ARPO (after +2.0% in the fourth
quarter of 2022), while the level of churn continued to fall.
We are therefore confident in our ability to return
to EBITDAaL growth this year.
Africa & Middle East
In millions of euros |
|
1Q 2023 |
1Q 2022comparablebasis |
1Q 2022historicalbasis |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
1,699 |
1,558 |
1,668 |
9.1 % |
1.9 % |
Retail services (B2C+B2B) |
|
1,509 |
1,379 |
1,463 |
9.4 % |
3.1 % |
Mobile-only |
|
1,297 |
1,192 |
1,265 |
8.8 % |
2.5 % |
Fixed-only |
|
202 |
179 |
188 |
13.1 % |
7.4 % |
IT & Integration services |
|
9 |
8 |
9 |
11.1 % |
2.4 % |
Wholesale |
|
158 |
146 |
166 |
8.4 % |
(4.5)% |
Equipment sales |
|
23 |
26 |
31 |
(11.2)% |
(25.2)% |
Other revenues |
|
9 |
7 |
9 |
31.0 % |
7.4 % |
Africa & Middle East
again delivered
an exceptional performance in the first
quarter of 2023.
Africa & Middle East recorded a strong 9.1%
rise in revenues (+141 million euros), with growth in all
countries in the region, and double-digit growth in nearly half of
them. The region thus demonstrated its agility and resilience amid
security tensions and currency devaluations in some countries.
This performance was based on the continued rapid
development of retail services (+9.4%) due to double-digit growth
in the four growth engines, namely mobile data (+19.1%), fixed
broadband (+17.9%), Orange Money (+20.7%) and B2B (+15.1%), with
positive volume and value effects.
Orange Money’s return to double-digit growth shows
the effectiveness of our response plan in the face of increasing
competition.
The mobile customer base reached
143.9 million, a year-on-year increase of 5.1%, with a 3.2%
increase in average mobile ARPO.
Enterprise
In millions of euros |
|
1Q 2023 |
1Q 2022comparablebasis |
1Q 2022historicalbasis |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
1,951 |
1,965 |
1,945 |
(0.7)% |
0.3 % |
Fixed-only |
|
828 |
886 |
876 |
(6.5)% |
(5.5)% |
Voice |
|
233 |
264 |
262 |
(11.6)% |
(10.9)% |
Data |
|
595 |
622 |
614 |
(4.4)% |
(3.1)% |
IT & Integration services |
|
872 |
828 |
818 |
5.3 % |
6.6 % |
Mobile |
|
251 |
251 |
251 |
(0.3)% |
(0.2)% |
Mobile-only |
|
168 |
159 |
159 |
5.5 % |
5.6 % |
Wholesale |
|
10 |
10 |
10 |
(0.3)% |
(0.3)% |
Equipment sales |
|
73 |
82 |
82 |
(11.4)% |
(11.4)% |
Recovery plan
ongoing.
Enterprise revenues fell slightly by 0.7%
(-14 million euros) to 1,951 million euros in the first
quarter of 2023.
The decrease in the legacy fixed activities
(-58 million euros), voice in particular, was partially offset
by growth in IT & Integration services (+44 million
euros).
The Digital & Data and Orange Cyberdefense
activities produced double-digit growth of 12.7% and 10.5%
respectively in the first quarter of 2023.
As part of the ongoing recovery plan aimed at
implementing a new organization and substantially reducing costs,
Orange Business entered into discussions with the trade unions on a
collective contract termination agreement to support approximately
670 voluntary departures in its legacy activities in
France.
At the same time, to accelerate its digital
transformation, Orange Business has initiated a training and
retraining program of 5,000 employees for roles in key digital
disciplines (virtualization, cloud, data, artificial intelligence
and cybersecurity), while also launching an ambitious program to
recruit 800 experts in cybersecurity and as many again in the
digital services fields of Cloud and Digital & Data.
Totem
In millions of euros |
|
1Q 2023 |
1Q 2022comparablebasis |
1Q 2022historicalbasis |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
174 |
161 |
161 |
8.1 % |
8.1 % |
Wholesale |
|
174 |
161 |
161 |
8.1 % |
8.1 % |
Other revenues |
|
- |
- |
- |
- |
- |
Revenues for the Totem TowerCo5 reached
174 million euros in the first quarter, an 8.1% increase
driven by the 7.0% rise in external hosting revenues.
International Carriers & Shared
Services
In millions of euros |
|
1Q 2023 |
1Q 2022comparablebasis |
1Q 2022historicalbasis |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
354 |
381 |
382 |
(7.2)% |
(7.3)% |
Wholesale |
|
227 |
262 |
262 |
(13.2)% |
(13.2)% |
Other revenues |
|
127 |
119 |
120 |
6.0 % |
5.6 % |
Wholesale services revenues were down 13.2%
(-35 million euros), due primarily to the downward trend in
low-margin voice revenues. Mobile (mainly roaming-related services)
and data services were on the rise.
The 6.0% increase in other revenues
(+7 million euros) was due to a spike in activity at Orange
Marine during the quarter.
Mobile Financial Services
Mobile Financial Services had 3.1 million
customers at 31 March 2023, including 2.0 million in Europe
(Orange Bank) and 1.1 million in Africa (Orange Bank
Africa).
In the first quarter, new accounts opened at
Orange Bank (Europe) rose 14% and loans disbursed (excluding
mortgages) increased 34%.
Calendar of upcoming
events
23 May 2023 |
- Annual Shareholders Meeting |
26 July 2023 |
- Publication of First-Half 2023 results |
Contacts
press: Sylvain Brunosylvain.bruno@orange.comTom
Wrighttom.wright@orange.com Caroline
Celliercaroline.cellier@orange.com |
financial communication: (analysts and investors)Patrice Lambert-de
Diesbachp.lambert@orange.com Aurélia
Rousselaurelia.roussel@orange.comLouise
Racinelouise.racine@orange.comHong Hai
Vuonghonghai.vuong@orange.comLouis
Celierlouis.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 29 March 2023
with the French Financial Markets Authority (AMF) and in the annual
report (Form 20-F) filed on 30 March 2023 with the U.S. Securities
and Exchange Commission. Forward-looking statements speak only as
of the date they are made. Other than as required by law, Orange
does not undertake any obligation to update them in light of new
information or future developments.
Appendix
1: financial key indicators
Quarterly data
In millions of euros |
|
1Q 2023 |
1Q 2022comparablebasis |
1Q 2022historicalbasis |
variationcomparablebasis |
changehistoricalbasis |
Revenues |
|
10,619 |
10,484 |
10,582 |
1.3 % |
0.3 % |
France |
|
4,307 |
4,386 |
4,386 |
(1.8)% |
(1.8)% |
Europe |
|
2,739 |
2,637 |
2,648 |
3.8 % |
3.4 % |
Africa & Middle-East |
|
1,699 |
1,558 |
1,668 |
9.1 % |
1.9 % |
Enterprise |
|
1,951 |
1,965 |
1,945 |
(0.7)% |
0.3 % |
Totem |
|
174 |
161 |
161 |
8.1 % |
8.1 % |
International Carriers & Shared Services |
|
354 |
381 |
382 |
(7.2)% |
(7.3)% |
Intra-Group eliminations |
|
(605) |
(604) |
(608) |
|
|
EBITDAaL (1) |
|
2,590 |
2,576 |
2,620 |
0.5 % |
(1.2)% |
o/w Telecom activities |
|
2,625 |
2,603 |
2,646 |
0.9 % |
(0.8)% |
As % of revenues |
|
24.7 % |
24.8 % |
25.0 % |
(0.1 pt) |
(0.3 pt) |
o/w Mobile Financial Services |
|
(35) |
(26) |
(26) |
(33.0)% |
(33.0)% |
Ecapex |
|
1,493 |
1,570 |
1,610 |
(4.9)% |
(7.2)% |
o/w Telecom activities |
|
1,484 |
1,564 |
1,604 |
(5.1)% |
(7.4)% |
as % of revenues |
|
14.0 % |
14.9 % |
15.2 % |
(0.9 pt) |
(1.2 pt) |
o/w Mobile Financial Services |
|
8 |
6 |
6 |
44.4 % |
44.4 % |
EBITDAaL –
eCAPEX |
|
1,097 |
1,007 |
1,011 |
9.0 % |
8.6 % |
(1) EBITDAaL presentation adjustments
are described in Appendix 2.
Appendix 2: adjusted data to
income statement items
Quarterly data
|
|
1Q 2023 |
|
1Q 2022historical basis |
In millions of euros |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
Revenues |
|
10,619 |
- |
10,619 |
|
10,582 |
- |
10,582 |
External purchases |
|
(4,656) |
(0) |
(4,656) |
|
(4,496) |
(7) |
(4,504) |
Other operating income |
|
181 |
- |
181 |
|
186 |
- |
186 |
Other operating expense |
|
(83) |
91 |
8 |
|
(127) |
(1) |
(128) |
Labor expenses |
|
(2,129) |
(28) |
(2,156) |
|
(2,196) |
(37) |
(2,233) |
Operating taxes and levies |
|
(894) |
(1) |
(896) |
|
(895) |
(3) |
(897) |
Gains (losses) on disposal of fixed assets, investments and
activities |
|
na |
36 |
36 |
|
na |
11 |
11 |
Restructuring costs |
|
na |
(10) |
(10) |
|
na |
(30) |
(30) |
Depreciation and amortization of financed assets |
|
(27) |
- |
(27) |
|
(23) |
- |
(23) |
Depreciation and amortization of right-of-use assets |
|
(370) |
- |
(370) |
|
(381) |
- |
(381) |
Impairment of right-of-use assets |
|
- |
- |
- |
|
(1) |
- |
(1) |
Interests expenses on liabilities related to financed assets |
|
(2) |
2 |
na |
|
(0) |
0 |
na |
Interests expenses on lease liabilities |
|
(47) |
47 |
na |
|
(29) |
29 |
na |
EBITDAaL |
|
2,590 |
137 |
na |
|
2,620 |
(38) |
na |
Significant litigation |
|
96 |
(96) |
na |
|
(3) |
3 |
na |
Specific labour expenses |
|
(28) |
28 |
na |
|
(36) |
36 |
na |
Fixed assets, investments and business portfolio review |
|
36 |
(36) |
na |
|
11 |
(11) |
na |
Restructuring program costs |
|
(10) |
10 |
na |
|
(30) |
30 |
na |
Acquisition and integration costs costs |
|
(6) |
6 |
na |
|
(10) |
10 |
na |
Interests expenses on liabilities related to financed assets |
|
na |
(2) |
(2) |
|
na |
(0) |
(0) |
Interests expenses on lease liabilities |
|
na |
(47) |
(47) |
|
na |
(29) |
(29) |
Appendix 3: economic CAPEX to
investments in property,
plant and
intangible investment
In millions of euros |
|
1Q 2023 |
1Q 2022historicalbasis |
eCAPEX |
|
1,493 |
1,610 |
Elimination of proceeds from sales of property, plant and equipment
and intangible assets |
|
91 |
46 |
Telecommunication licenses |
|
314 |
214 |
Financed assets |
|
71 |
30 |
Investments in property, plant and equipment and intangible
assets |
|
1,969 |
1,900 |
Appendix 4: key performance
indicators
In thousand, at the end of the period |
|
March 312023 |
|
March 312022 |
Number of convergent customers |
|
11,620 |
|
11,551 |
Number of mobile accesses (excluding MVNOs)
(1) |
|
243,375 |
|
231,760 |
o/w |
Convergent customers mobile accesses |
|
21,336 |
|
20,986 |
|
Mobile only accesses |
|
222,039 |
|
210,774 |
o/w |
Contract customers mobile accesses |
|
95,822 |
|
88,319 |
|
Prepaid customers mobile accesses |
|
147,552 |
|
143,441 |
Number of fixed accesses (2) |
|
44,970 |
|
46,201 |
|
Fixed Retail accesses |
|
30,695 |
|
31,175 |
|
|
Fixed Broadband accesses |
|
24,401 |
|
23,841 |
|
|
o/w |
Very high‑speed broadband fixed accesses |
|
14,675 |
|
12,792 |
|
|
|
Convergent customers fixed accesses |
|
11,620 |
|
11,551 |
|
|
|
Fixed accesses only |
|
12,781 |
|
12,290 |
|
|
Fixed Narrowband accesses |
|
6,294 |
|
7,334 |
|
Fixed Wholesale accesses |
|
14,275 |
|
15,025 |
Group total accesses (1+2) |
|
288,345 |
|
277,960 |
2022 data is presented on a comparable
basis.
Key performance indicators (KPIs) by country are
presented in the “Orange Investors Data Book Q1 2023,”
available on www.orange.com, under Finance/Results:
www.orange.com/en/latest-consolidated-results
Appendix
5: glossary
Key figures
Data on a comparable basis: data based on
comparable accounting principles, scope of consolidation and
exchange rates are presented for previous periods. The transition
from data on an historical basis to data on a comparable basis
consists of keeping the results for the period ended and then
restating the results for the corresponding period of the preceding
year for the purpose of presenting, over comparable periods,
financial data with comparable accounting principles, scope of
consolidation and exchange rate. The method used is to apply to the
data of the corresponding period of the preceding year, the
accounting principles and scope of consolidation for the period
just ended as well as the average exchange rate used for the income
statement for the period ended. Changes in data on a comparable
basis reflect organic business changes. Data on a comparable basis
is not a financial aggregate as defined by IFRS and may not be
comparable to similarly named indicators used by other
companies.
EBITDAaL or “EBITDA after Leases”: operating
income (i) before depreciation and amortization of fixed assets,
effects resulting from business combinations, reclassification of
cumulative translation adjustment from liquidated entities,
impairment of goodwill and fixed assets, share of profits (losses)
of associates and joint ventures, (ii) after interest on debts
related to financed assets and on lease liabilities, and (iii)
adjusted for significant litigation, specific labor expenses, fixed
assets, investments and businesses portfolio review, restructuring
programs costs, acquisition and integration costs and, where
appropriate, other specific elements. EBITDAaL is not a financial
aggregate as defined by IFRS standards and may not be directly
comparable to similarly named indicators in other companies.
eCAPEX or “economic CAPEX”: (i) acquisitions of
property, plant and equipment and intangible assets, excluding
telecommunications licenses and financed assets, (ii) less the
price of disposal of property, plant and equipment and intangible
assets. eCAPEX is not a financial performance indicator as defined
by IFRS standards and may not be directly comparable to indicators
referenced by similarly named indicators in other companies.
Organic Cash Flow (telecoms activities): for the
perimeter of the telecoms activities, net cash provided by
operating activities, minus (i) lease liabilities repayments and
debts related to financed assets repayments, and (ii) purchases and
sales of property, plant and equipment and intangible assets, net
of the change in the fixed assets payables, (iii) excluding
telecommunication licenses paid and significant litigations paid or
received. Organic Cash Flow (telecoms activities) is not a
financial aggregate defined by IFRS and may not be comparable to
similarly named indicators used by other companies.
Retail services (B2C + B2B): aggregation of
revenues from (i) Convergent services, (ii) Mobile-only services,
(iii) Fixed-only services and (iv) IT & integration services
(see definitions). Retail Services (B2C+B2B) revenues include all
revenues of a given scope excluding revenues from wholesale
services, equipment sales and other revenues (see definitions).
Performance indicators
Fixed retail accesses: number of fixed broadband
accesses (xDSL (ADSL and VDSL), FTTx, cable, Fixed-4G (fLTE) and
other broadband accesses (satellite, Wimax and others)) and fixed
narrowband accesses (mainly PSTN) and payphones.
Fixed wholesale accesses: number of fixed
broadband and narrowband wholesale accesses operated by Orange.
Convergence
Convergent services: customer base and revenues
from B2C Convergent retail offers, excluding equipment sales (see
definition) defined as an offer combining at least a broadband
access (xDSL, FTTx, cable or Fixed-4G (fLTE) with cell-lock) and a
mobile voice contract (excluding MVNOs).
Convergent ARPO: average quarterly revenues per
convergent offer (ARPO) calculated by dividing revenues from retail
Convergent services offers invoiced to B2C customers generated over
the past three months (excluding IFRS 15 adjustments) by the
weighted average number of retail Convergent offers over the same
period. ARPO is expressed by monthly revenues per convergent
offer.
Mobile-only services
Mobile-only services: revenues from mobile
offers (mainly outgoing calls: voice, SMS and data) invoiced to
retail customers, excluding convergent services and equipment sales
(see definitions). The customer base includes customers with a
contract excluding retail convergence, machine-to-machine contracts
and prepaid cards.
Mobile-only ARPO: average quarterly revenues
from Mobile-only (ARPO) calculated by dividing revenues from
Mobile-only retail services (excluding machine-to-machine and IFRS
15 adjustments) generated over the past three months by the
weighted average of Mobile-only customers (excluding
machine-to-machine) over the same period. The ARPO is expressed as
monthly revenues per Mobile-only customer.
Fixed-only services
Fixed-only services: revenues from fixed retail
offers, excluding B2C convergent offers and equipment sales (see
definitions). It includes (i) fixed narrowband services
(conventional fixed telephony), (ii) fixed broadband services, and
(iii) business solutions and networks (with the exception of
France, for which essential business solutions and networks are
supported by Enterprise). For the Enterprise segment, Fixed-only
service revenues include sales of network equipment related to the
operation of voice and data services. The customer base consists of
fixed narrowband and fixed broadband customers, excluding retail
convergence customers.
Fixed-only Broadband ARPO: average quarterly
revenues from Fixed-only Broadband (ARPO) calculated by dividing
the revenue from Fixed-only Broadband retail services (excluding
IFRS 15 adjustments) generated over the past three months by the
weighted average of Fixed-only Broadband customers over the same
period. ARPO is expressed as monthly revenues per Fixed-only
Broadband customer.
IT & integration
services
IT & Integration services: revenues from
unified communication and collaboration services (Local Area
Network and telephony, advising, integration and project
management), hosting and infrastructure services (including Cloud
Computing), applications services (customer relations management
and other applications services), security services, video
conferencing offers, machine-to-machine services (excluded
connectivity) as well as sales of equipment related to the above
products and services.
Wholesale
Wholesale: revenues from other carriers consists
of (i) mobile services to other carriers including incoming
traffic, visitor roaming, network sharing, national roaming and
Mobile Virtual Network Operators (MVNOs), and (ii) fixed services
to other carriers including national networking, services to
international carriers, high-speed and very high-speed broadband
access (fibre access, unbundling of telephone lines and xDSL access
sales) and the sale of telephone lines on the wholesale market.
Equipment sales
Equipment sales: revenues from all mobile and
fixed equipment sales, excluding (i) equipment sales associated
with the supply of IT & Integration services, (ii) sales of
network equipment related to the operation of voice and data
services in the Enterprise operating segment, and (iii) equipment
sales to dealers and brokers.
Other revenues
Other revenues: revenues including (i) equipment
sales to brokers and dealers, (ii) portal, (iii) on-line
advertising revenues, (iv) corporate transversal business line
activities, and (v) other miscellaneous revenues.
1 Unless otherwise stated, percentage changes are
on a year-on-year basis, calculated against the first quarter of
2022 and on a comparable basis.2 Revenue from the Switched
Telephone Network3 These objectives are on a comparable basis and
do not take into account mergers and acquisitions not yet
finalized.4 Excluding M2M (machine-to-machine exchange of
information)
5 European company within the Orange group that
owns and manages the passive mobile infrastructure portfolio of
telecommunication towers, initially in France and Spain. It has
been presented as a separate business segment since January 1,
2022.
- PR Orange Financial Results Q1 Final EN 260423
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