Another Year of Declines for Orange but Brighter Future Promised
Published on: 6th Mar 2014
By: Ian Mansfield
France's Orange has posted a marked decline in its full year revenues although its outlook for the year ahead was more positive as it steps up cost cutting measures.
Consolidated revenues came in at EUR 40.98 billion, a a 4.5% decline on a comparable basis of which more than 40% is attributable to the impact of regulatory measures. Excluding regulatory measures, revenues declined 2.6%.
However, profits more than doubled to EUR1.87 billion, although most of the difference was due to write-downs last year not being repeated again.
The Orange Group ended the year with a total of 236.3 million customers, a year-on-year increase of 2.4% (5.6 million net additions).
Commenting, Stéphane Richard, Chairman and CEO of Orange, stated: "In a European market with no shortage of challenges, Orange is determined to remain a leader both in terms of its networks and the creativity of its offers, in fixed as well as mobile. All this combined will enable us to stabilise our EBITDA margin."
Orange's restated EBITDA for the year ahead is expected to be EUR 12.1 to EUR 12.6 billion, which would mean the first time if five years that it has not declined.
The potential for consolidation in France, where the company generates half its revenue could also reduce pressure on the company in the highly competitive market.
Cost cutting measures last year reduced overheads by EUR929 million, and CAPEX came in at EUR 5.63 billion. The company also cut its dividend payment to shareholders to help conserve cash.
Net debt rose very slightly to EUR 30.7 billion at the end of the year.