Orange Quarterly Revenues Fall Due to Regulatory Pressures
Published on: 29th Apr 2014
Orange has reported a decline in its first quarter revenues as regulatory cuts and competition in its home market continue to hurt the company.
Revenue for the three month period fell by 3.8 percent to EUR9.8 billion (USD13.6 billion), with declines in all markets, and the steepest falls in France and Poland.
In France, the revenue decline slowed to 4.9% after falling 6.2% in the 4th quarter of 2013. The improvement was related to both fixed and mobile services.
In Poland, revenues from mobile services gradually improved to a 1.0% decline after falling 2.2% in the 4th quarter of 2013: the growth in the customer base offset the effect of price reductions.
In the Rest of World segment, revenues were generally stable at -0.2%. Europe, which decreased 8.4% after declining 9.2% in the 4th quarter of 2013, continued to be impacted by price reductions in Belgium and Slovakia, while revenues in Romania grew 4.9%. Revenues in Africa and the Middle East continued to rise steadily, up 6.0% led by Mali, Guinea and Côte d'Ivoire.
Commenting on the results for the 1 st quarter of 2014, Stéphane Richard, Chairman and CEO of the Orange Group, said: "Orange's first quarter 2014 performance was very satisfactory, aided in large part by the continued strong commercial momentum in our core countries."
The Group had 239.4 million customers at 31 March 2014, an increase of 4.2% year on year, with 9.6 million net additions. There were 181.7 million mobile services customers, an increase of 5.8% year on year (+9.9 million net additions).