France Telecom Finances Decline on Weaker Home Market
France Telecom has announced that its first-quarter revenues fell by 5.9 percent to EUR10.3 billion, while its EBITDA also fell by 9 percent to EUR3.1 billion as the company was hurt by intensive competition in its home market.
In France, the decline in mobile services revenues was 2.9% in the first
quarter of 2013, affected by price reductions and the development of SIM-only
offers. In Spain, revenues rose by 3.3%, led by growth in the fixed broadband
and mobile services customer bases. In Poland, the decline in mobile services
revenues was limited to 2.2% in the first quarter of 2013, while
fixed broadband climbed 9.3%.
In the rest of Europe, revenues increased 2.6%, lifted by mobile Internet browsing and smartphone sales and in Africa and the Middle East, revenues grew 3.3%, led by Côte d'Ivoire, Senegal, Guinea and Niger.
The Group added 5.9 million customers, taking its total to 229.8 million at the end of March.
In the Enterprise segment, revenues declined 5.3% in the first quarter of 2013 due to intensified competition and difficult economic conditions in Europe
Capital expenditure of EUR1.15 billion grew 6.5%, with the acceleration of investment in fixed and mobile high-speed broadband services (fibre and 4G), particularly in France.
Looking ahead, the company confirmed that it is looking at possible acquisitions in its existing markets, but did not outline any possible targets.