France Telecom Revenues Fall on Weak Home Market and Regulatory Impacts
Published on: 25th Oct 2012
Note -- this news article is more than a year old.
By: Ian Mansfield
France Telecom Orange has announced that its third quarter revenues declined by 3.5% to EUR10.76 billion (US$13.95 billion) while EBITDA fell by 7.3 percent to EUR1.24 billion (US$1.61 billion).
In France, revenues declined by 1.1%, and in Poland by 3.4%. There were improvements in Spain and the "rest of world" segment of 0.8% and 3% respectively.
France Telecom-Orange had 227.2 million customers at 30 September 2012, an increase of +3.1% year on year. There was very significant improvement in the third quarter with 3.0 million net additions.
As in 2012, the Group said that it expects that it will face a more difficult environment in 2013 than initially expected, with a deteriorating macro-economic outlook, strong competition in the French mobile market and continued regulatory pressure.
Commenting on the results, Stephane Richard, Chairman and CEO of France Telecom-Orange, said: "The Group delivered solid results for the third quarter enabling us to confirm our operational cash flow target for 2012. This was due to a decidedly improved commercial performance in France compared to the first half, as well as the contribution from Spain and countries in Africa and the Middle East which continue to drive the Group's growth."
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