Paris, 25 October 2016
Third quarter 2016 financial information
Accelerated growth in third quarter
revenue and restated EBITDA, driven by very high-speed broadband
and convergence
-
The Group achieved a solid
commercial performance in the 3rd quarter of
2016, driven by very high-speed broadband and convergence, with
845,000 net mobile contract1 additions and
348,000 additional fibre customers. There were 25.5 million 4G
customers in Europe at 30 September 2016 (1.7x increase in one
year) and 9.8 million customers of convergent offers at that date
(+11% year on year).
In France, mobile contract1 net
additions remained at a high level (+187,000 in the 3rd quarter),
confirming the attractiveness of Orange's segmented offers. Fixed
broadband was also very buoyant, with 134,000 net additions in the
3rd quarter, led
by fibre (+126,000) with 1.308 million customers at 30 September
2016.
In Spain, fixed broadband growth continued to be very strong with
194,000 net fibre additions in the 3rd quarter and
1.411 million fibre customers at 30 September 2016. Mobile
contracts[1] climbed
steadily, with 94,000 net additions in the 3rd
quarter, a stronger performance than in the 3rd
quarter of 2015.
In Poland, the commercial performance was very satisfactory with
309,000 net mobile contract additions (the highest level in several
years), after three quarters of already strong growth. In Belgium,
the mobile contract1 customer base
rose for the sixth consecutive quarter.
In Africa and the Middle East, the mobile customer base at 30
September 2016 was 113.5 million customers and included Tigo in the
Democratic Republic of the Congo (3.4 million customers) and
Cellcom in Liberia (1.5 million customers), both of which were
consolidated in the 3rd quarter. The
trend in net additions improved significantly with 103,000 net
customer additions in the 3rd quarter
after a decrease of 1.4 million customers in the 2nd quarter, on
a comparable basis. Orange Money had 20 million customers at 30
September 2016 (+30% year on year).
-
Revenues reached 10.323 billion
euros in the 3rd quarter of
2016, up 0.8%, after rising 0.3% in the 1st half
(on a comparable basis). At 30 September 2016, revenues had
increased 0.5%. The improving trend was confirmed despite the
impact of the decline of national roaming in France and of roaming
price reductions in Europe.
Growth accelerated in Spain, rising 7.8% in the
3rd quarter
after an increase of 6.2% in the 2nd quarter.
Growth resumed in the Belgium and Luxembourg segment (+1.7%), and
the trend improved in the Enterprise segment (+0.7%). France posted
a modest decline of 0.6% in the 3rd quarter,
while revenues rose 2.5% in Africa and the Middle East in the
3rd quarter
following growth of 2.3% in the 2nd quarter.
-
Restated EBITDA (3.597 billion
euros in the 3rd quarter of
2016) rose 1.6% (+58 million euros) on a comparable basis and
the restated EBITDA margin was 34.9%, an improvement of 0.3
percentage points compared with the 3rd quarter of
2015. Restated EBITDA for the first nine months of the year (9.510
billion euros) increased 0.2% (+19 million euros) and the restated
EBITDA margin was essentially stable at 31.3%.
-
CAPEX for the first nine months
of the year (4.733 billion euros at 30 September 2016) increased
5.3% on a comparable basis and the ratio of CAPEX to revenues
was 15.6% (+0.7 percentage points compared with 30 September 2015).
Investments in very high-speed fixed and mobile broadband (fibre,
4G and 4G+) continued their steady climb, in line with the goals of
the Essentiels2020 strategic plan. Investments also increased in
the datacentres, in customer equipment (new Livebox in France) and
in the new Smart Store concept stores.
2016 outlook
For the full-year 2016, Orange confirms that restated EBITDA will
be greater than that of 2015 on a comparable basis. This objective
will be supported by continued commercial momentum, investments,
and efforts to improve the cost structure.
The Group also confirms the target of
a restated ratio of net debt to EBITDA of around 2x in the medium
term to preserve Orange's financial strength and investment
capacity. Within this framework, the Group is maintaining a policy
of selective, value-creating acquisitions concentrating on markets
in which it is already present.
The Group plans to propose the
payment of a dividend of 0.60 euros per share for 2016[2]. An interim
dividend for 2016 of 0.20 euros per share will be paid on 7
December 2016[3].
Commenting on the publication of the results for
the first nine months of 2016, Stéphane Richard, Chairman &
Chief Executive Officer of the Orange Group, stated:
"The third quarter
was again marked by a strong commercial performance, reflecting the
success of Essentiels2020 - our strategy of differentiation through
investment in high-speed broadband networks and the reinvention of
our customer relationships. This performance can be seen in the
accelerated growth of our revenues and restated EBITDA and enables
us to confirm all of our objectives for 2016.
In France, due to a
strong commercial dynamic, we reached the end of September with
more than 10 million 4G customers, 1.3 million fibre customers and
more than half of our broadband customer base using converged
services. These developments have led to further improvement in
both the satisfaction and loyalty of our mobile and fixed
customers.
The increasing
growth in revenues in Europe mainly stems from the excellent
performance in Spain, with very strong growth in both mobile and
fixed broadband, as well as the return to growth in Belgium, where
our new convergent offers are showing early signs of
success.
In Africa and the
Middle East, where Orange Money customers now exceed 20 million,
the increasing take-up of smartphones and our commercial strategy
has translated into strong growth in mobile data revenues. The
integration of the recently acquired operations in Sierra Leone,
Burkina Faso, Liberia and the Democratic Republic of the Congo is
on track, with the latter two operations now consolidated.
Lastly, the
Enterprise business is performing well, with a third consecutive
quarter of revenue growth, again due to the development of our IT
activities and integration services."
*
* *
The Board of Directors of Orange SA met on 24
October 2016 and examined the Group's results for the period ended
30 September 2016.
The financial data and comparable basis data in this press release
are unaudited data.
More detailed information is available on the Orange
website:
www.orange.com
Key figures
|
|
|
|
|
|
|
|
|
|
|
2016 |
2015 |
2015 |
|
change |
|
change |
In millions
of euros |
|
comparable basis |
historical basis |
|
comparable basis |
|
historical basis |
|
|
|
|
|
|
|
|
|
|
Revenues |
30,401 |
30,258 |
29,841 |
|
0.5 % |
|
1.9 % |
Of which: |
|
|
|
|
|
|
|
|
France |
14,144 |
14,289 |
14,279 |
|
(1.0)% |
|
(0.9)% |
|
Europe |
7,798 |
7,666 |
7,345 |
|
1.7
% |
|
6.2
% |
|
|
Spain |
3,706 |
3,520 |
3,064 |
|
5.3
% |
|
21.0
% |
|
|
Poland |
1,963 |
2,042 |
2,145 |
|
(3.9)% |
|
(8.5)% |
|
|
Belgium
& Luxembourg |
920 |
913 |
913 |
|
0.8
% |
|
0.8
% |
|
|
Central
European countries |
1,215 |
1,194 |
1,227 |
|
1.7
% |
|
(1.0)% |
|
|
Intra-Europe eliminations |
(6) |
(2) |
(3) |
|
- |
|
- |
|
Africa & Middle East |
3,887 |
3,772 |
3,587 |
|
3.0
% |
|
8.4
% |
|
Enterprise |
4,756 |
4,707 |
4,748 |
|
1.0
% |
|
0.2
% |
|
International Carriers & Shared
Services |
1,360 |
1,386 |
1,442 |
|
(1.8)% |
|
(5.7)% |
|
Intra-Group eliminations |
(1,544) |
(1,562) |
(1,561) |
|
- |
|
- |
Restated EBITDA* |
9,510 |
9,491 |
9,351 |
|
0.2 % |
|
1.7 % |
|
As % of
revenues |
31.3 % |
31.4 % |
31.3 % |
|
(0.1)
pt. |
|
(0.1)
pt. |
CAPEX (excluding
licences) |
4,733 |
4,496 |
4,235 |
|
5.3 % |
|
11.8 % |
|
As % of
revenues |
15.6 % |
14.9 % |
14.2 % |
|
0.7
pt. |
|
1.4
pt. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd
quarter |
3rd
quarter |
3rd
quarter |
|
change comparable |
|
change historical |
|
|
|
2016 |
2015 |
2015 |
|
basis |
|
basis |
In millions
of euros |
|
comparable basis |
historical basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
10,323 |
10,240 |
10,284 |
|
0.8 % |
|
0.4 % |
Of which: |
|
|
|
|
|
|
|
|
France |
4,768 |
4,797 |
4,794 |
|
(0.6)% |
|
(0.5)% |
|
Europe |
2,670 |
2,597 |
2,652 |
|
2.8
% |
|
0.7
% |
|
|
Spain |
1,288 |
1,194 |
1,216 |
|
7.8
% |
|
5.9
% |
|
|
Poland |
657 |
684 |
709 |
|
(3.9)% |
|
(7.4)% |
|
|
Belgium
& Luxembourg |
311 |
306 |
306 |
|
1.7
% |
|
1.7
% |
|
|
Central
European countries |
417 |
414 |
421 |
|
0.8
% |
|
(1.1)% |
|
|
Intra-Europe eliminations |
(3) |
(1) |
(1) |
|
- |
|
- |
|
Africa & Middle East |
1,371 |
1,338 |
1,304 |
|
2.5
% |
|
5.1
% |
|
Enterprise |
1,567 |
1,556 |
1,577 |
|
0.7
% |
|
(0.6)% |
|
International Carriers & Shared
Services |
456 |
479 |
486 |
|
(4.7)% |
|
(6.1)% |
|
Intra-Group eliminations |
(510) |
(527) |
(528) |
|
- |
|
- |
Restated EBITDA* |
3,597 |
3,540 |
3,561 |
|
1.6 % |
|
1.0 % |
|
As % of
revenues |
34.9 % |
34.6 % |
34.6 % |
|
0.3
pt. |
|
0.2
pt. |
CAPEX (excluding
licenses) |
1,566 |
1,559 |
1,563 |
|
0.5 % |
|
0.2 % |
|
As % of
revenues |
15.2 % |
15.2 % |
15.2 % |
|
(0.1)pt. |
|
(0.0)pt. |
|
|
|
|
|
|
|
|
|
|
* EBITDA restatements are described
in appendix 2.
Comments on key Group figures
Revenues
Orange Group revenues for the first nine months of the year were
30.401 billion euros. An increase of 0.8% in the 3rd quarter of
2016, after rising 0.3% in both the 1st half of 2016
and the 2nd half of 2015
(on a comparable basis), confirmed the improving trend despite the
impact of decreased national roaming in France and roaming price
reductions in Europe.
The Group's revenues grew 0.5% in the first nine months of the year
on a comparable basis[4]. Fixed
broadband services rose 5.1% at 30 September 2016, led by fibre and
TV content in France and Spain, while mobile services rose
0.4%.
The revenue trends in the 3rd quarter of
2016 were as follows by region (on a comparable basis):
In France, the growth of fixed broadband services remained strong
(+5.8% in the 3rd quarter),
led by fibre and TV content. Mobile services declined 3.8%,
marked in particular by the downturn in national roaming and
roaming price reductions in Europe.
In Europe, revenues rose 2.8% in the 3rd quarter
after rising 1.9% in the 2nd quarter, led
by growth in Spain:
-
in Spain, revenue growth accelerated (+7.8%
after rising 6.2% in the 2nd quarter),
led by mobile services and mobile equipment sales, while the growth
of fixed broadband continued to be strong (+7.8%) with the success
of fibre;
-
in Poland, revenues were down 3.9% in the
3rd quarter,
continuing the trend of the previous two quarters. In particular,
the decline of mobile services (-3.1%) reflected the development of
SIM-only offers and of convergence;
-
Belgium & Luxembourg: revenue growth resumed
in the 3rd quarter
(+1.7%) principally with the rebound of mobile equipment
sales;
-
the Central European Countries rose 0.8% in the
3rd quarter:
growth in Romania (+3.3%) was partly offset by a decline in
Slovakia (-2.7%) and in Moldova (-3.7%).
Africa and the Middle East grew 2.5% after an
increase of 2.3% in the 2nd quarter, led
by Egypt, Guinea, Côte d'Ivoire and Mali.
Enterprise segment: IT and integration services rose 4.1% in the
quarter, led by security and Cloud services, while connectivity
(voice and data services) was relatively stable.
Customer base growth
In France, mobile contracts (25.8 million customers at 30 September
2016) climbed 8.7% and represented 87.3% of the mobile customer
base at that date (+3.3 percentage points year on year). In Europe,
mobile contracts (32.9 million customers) were up 6.6% year on year
and represented 63.9% of the mobile customer base (+2.5 percentage
points in one year). The increase in contracts in the Europe zone
principally related to Poland and Spain.
Africa and the Middle East had 113.5 million mobile customers at 30
September 2016, including Tigo in the Democratic Republic of the
Congo (3.4 million customers) and Cellcom in Liberia (1.5 million
customers), which were consolidated in the 3rd
quarter. The trend in net additions improved significantly with the
addition of 103,000 customers in the 3rd quarter,
after a decrease of 1.4 million customers in the 2nd quarter (on
a comparable basis), which had been impacted in particular by
customer identity verification processes coming into force in most
countries. On a comparable basis, the mobile customer base of the
Africa and the Middle East segment declined 1.9% year on
year.
The Group had a total of 194.5 million mobile services customers at
30 September 2016, an increase of 0.2% year on year (+294,000
additional customers) on a comparable basis.
There were 18.1 million fixed broadband customers at 30 September
2016, an increase of 3.3% year on year on a comparable basis with
582,000 additional customers, including 443,000 in France and
197,000 in Spain. Fixed broadband subscribers included 2.898
million fibre subscribers at 30 September 2016, with 1.411 million
in Spain and 1.308 million in France.
Meanwhile, there were 8.2 million TV customers at 30 September
2016, compared with 7.7 million at 30 September 2015 on a
comparable basis, a year-on-year increase of 7.1%.
Restated EBITDA
Restated EBITDA was 9.510 billion euros in the first nine months of
2016, an increase of 0.2% (+19 million euros) on a comparable
basis, and the restated EBITDA margin was 31.3%, nearly stable in
relation to the first nine months of 2015 (-0.1 percentage
point).
In the 3rd quarter of
2016, restated EBITDA rose 1.6% (+58 million euros) to 3.597
billion euros while the restated EBITDA margin was 34.9% (+0.3
percentage points) on a comparable basis compared to the
3rd quarter of
2015.
The increase in restated EBITDA in the 3rd quarter of
2016 was mainly tied to revenue growth (+82 million euros), while
commercial expenses and content costs increased 58 million euros to
support business growth.
The other operating costs were down 33 million euros: the reduced
labour expenses were partially offset by increased operating taxes
(particularly in the Africa and Middle East segment), while other
expenses remained stable, thanks in particular to the actions
carried out under the Explore2020 operational efficiency
improvement plan.
CAPEX
CAPEX reached 4.733 billion euros in the first nine months of
2016[5], up 5.3% in
relation to the first nine months of 2015, on a comparable basis.
The ratio of CAPEX to revenues was 15.6%, an increase of 0.7
percentage points compared to 30 September 2015.
Investments in fibre rose strongly (+14.6% compared with the first
nine months of 2015) and mainly related to France and Spain. There
were 6.3 million households with connectivity in France at 30
September 2016, 9.0 million in Spain, and 1.2 million in
Poland.
Investments in very high-speed mobile services increased 14.4%
compared to the first nine months of 2015. At 30 September 2016,
84% of the population in France had 4G coverage, 89% in Spain, 97%
in Poland, 99.5% in Belgium, 74% in Romania, 77% in Slovakia and
96% in Moldova. In Africa and the Middle East, 4G was commercially
launched in 10 countries: Botswana, Cameroon, Côte d'Ivoire,
Guinea-Bissau, Jordan, Liberia, Morocco, Mauritius, Senegal and
Tunisia. At the same time, 4G+ deployment continued in France and
in the other European countries.
There was also an increase in investments in customer equipment,
with Orange's new Livebox marketed since May 19th, and
information systems (datacentres in France, integration of Jazztel
in Spain, and customer relations in Africa and the Middle
East).
The modernisation of stores continued, mainly in France with the
opening of 14 new Smart Stores in the 3rd quarter of
2016, bringing the total in France to 37.
Changes in asset portfolio
The four companies recently acquired in Africa have gradually been
consolidated in the Group's financial statements. Cellcom in
Liberia and Tigo in the Democratic Republic of the Congo were fully
consolidated at 30 September 2016. The two subsidiaries acquired
from the Bharti Airtel group in Burkina Faso and Sierra Leone will
be consolidated in the 4th
quarter.
Orange announced on 20 July 2016 that, through its entity Orange
Business Services, it had acquired Log'in Consultants, a business
dedicated to integration services for workstation
virtualisation.
In early October, the French and European regulatory and prudential
authorities authorised Orange to acquire 65% of the capital of
Groupama Banque, which will be renamed Orange Bank in January 2017.
The Orange Bank offering will be available in France in the first
half of 2017.
On 18 October 2016, Orange acquired 100% of the capital of Sun
Communications, the leading supplier of paid television in Moldova,
which will enable Orange to market broadband convergent offers in
the country.
Review by operating segment
France
Revenues in France showed a modest decline of 0.6% in the
3rd quarter of
2016 after falling 1.7% in the 2nd quarter on a
comparable basis. They benefited from an improvement in the trend
for mobile services to operators (particularly MVNOs and network
sharing) and a recovery in mobile equipment sales (+11.4% after a
1.8% decrease in the 2nd
quarter).
Mobile services declined 3.8% in the 3rd quarter of
2016. They continued to be affected by lower revenues from the
national roaming contract and the reduction of roaming prices in
Europe, as well as the impact of the rapid growth of SIM-only
offers, which represented 61% of consumer contracts at 30 September
2016 (+13 percentage points year on year). The Open convergent
offers and the Sosh offers continued to post strong growth, with
7.569 million Open customers at 30 September 2016 (+11.2% year on
year) and 3.209 million Sosh customers (+13.9% year on year). The
total contract customer base[6] (20.644
million customers at 30 September 2016) recorded year-on-year
growth of 2.8%. There were 10.3 million 4G customers at that same
date representing 50% of the contract customer base6.
Fixed services grew 0.7% in the 3rd quarter of
2016. Growth of fixed broadband services accelerated (+5.8% in the
3rd quarter
after rising 4.4% in the 2nd quarter),
led by growth of the customer base and an increase in ARPU. The
fixed broadband customer base had 11.056 million subscribers at 30
September 2016 (+4.2% year on year). It included 1.308 million
fibre subscribers, compared with 827,000 one year earlier, a
year-on-year increase of 58%. ARPU rose 0.5% as at 30 September
2016, reflecting the growing share of fibre and premium offers
(Play and Jet offers) and the development of TV content offers.
Convergent offers represented 51% of the fixed broadband customer
base at 30 September 2016 (+3 percentage points in one
year).
Traditional telephony fell 11.2% in the 3rd quarter of
2016 while fixed services to operators rose 2.1% with growth in the
number of broadband subscriptions marketed to operators and in
related collection and transmission services.
Europe
Revenues from the Europe zone increased 2.8% in the 3rd quarter of
2016 after climbing 1.9% in the 2nd quarter, led in
particular by strong growth in Spain (+7.8% in the 3rd quarter
after rising 6.2% in the 2nd
quarter).
For the Europe zone as a whole, revenues from mobile services
increased 3.3% in the 3rd quarter. The
contract customer base had 32.9 million customers at 30 September
2016, an increase of 6.6% year on year, and represented 63.9% of
the total mobile customer base at that date (+2.5 percentage points
in one year). The marketing of contracts continued to be brisk,
with 550,000 net additions in the 3rd quarter
after 585,000 in the 2nd
quarter.
Revenues from fixed broadband rose 4.8% in the 3rd
quarter, reflecting the rapid development of fibre and of TV
content offers in Spain. The fixed broadband customer base had 6.1
million customers at 30 September 2016 (+2.0% year on year),
including 1.5 million fibre customers, mainly in Spain. At 30
September 2016, the fixed broadband customer base also included the
first customers of recently marketed convergent offers, which were
offered via cable in Belgium and via fibre in Romania.
Spain
The revenue trend in Spain improved for the sixth consecutive
quarter, with growth of 7.8% posted in the 3rd
quarter of 2016 after the increases of 6.2% in the 2nd quarter and
1.8% in the 1st quarter (on
a comparable basis).
This reflected the mobile services trend, which rose 9.8% in the
3rd quarter of
2016 after rising 8.9% in the 2nd quarter and
4.4% in the 1st quarter.
These services benefited from the richer offers that began at the
end of 2015, and from 4G deployment, with 7.2 million customers at
30 September 2016 (1.6x increase in one year). The customer base
continued to grow, with the number of contract customers (12.5
million at 30 September 2016) increasing 5.4% year on year, while
the number of prepaid offer customers (3.3 million) increased
1.0%.
Fixed services rose 4.6% in the 3rd quarter of
2016, a continuation of the two previous quarters. Fixed broadband
revenues continued to climb sharply (+7.8% in the 3rd quarter).
There were 3.886 million fixed broadband customers at 30 September
2016 (+5.3% year on year), and quarterly ARPU rose 2.6%. Fibre
experienced very strong growth, with 1.411 million customers at
that date (2.5x increase in one year) and represented 36% of the
fixed broadband customer base (+21 percentage points in one year).
TV services also rose rapidly, with 458,000 customers at 30
September 2016 (2.1x increase in one year), led by the success of
content offers and in particular the broadcast of football
championships. Meanwhile, convergent offers represented 83% of the
fixed broadband customer base at 30 September 2016 (+2.4 percentage
points in one year).
Poland
Revenues in Poland declined 3.9% in the 3rd quarter of
2016 after falling 3.5% in the 2nd quarter, on
a comparable basis.
Mobile services decreased 3.1% in the 3rd quarter.
ARPU erosion followed the same trend as in the previous quarters,
in connection with the development of SIM-only offers, multi-SIM
offers and convergent offers. In the third quarter, commercial
momentum was particularly strong, with 309,000 net contract
additions, due to the success of commercial activities and to
increased customer migrations from prepaid offers to contracts. In
all, the contract customer base (9.085 million customers at 30
September 2016) recorded growth of +12.3% year on year. 4G
continued to develop rapidly, with 3.8 million users at 30
September 2016 (2.4x increase in one year), and the number of
convergent offers (837,000 customers at that same date) increased
25.5% year on year. The number of pre-paid offer customers declined
600,000 in the 3rd quarter,
linked to the introduction of customer identity verification
requirements, though this had a limited impact on the revenue
trend.
Growth continued to be buoyant in mobile equipment sales (+51.2% in
the 3rd quarter),
led by the development of sales using an instalment payment
plan.
Fixed services declined 8.6% in the 3rd quarter.
Traditional telephony fell 13.0% and fixed broadband decreased
6.8%, impacted by a decline in the number of clients and price
reductions occurring in 2015. Commercial activity in very
high-speed broadband (VDSL and fibre) was brisk: there were 44,000
net additions in the 3rd quarter,
including 18,000 additional fibre customers. At 30 September 2016,
there were 436,000 customers of very high-speed offers (VDSL and
fibre), a year-on-year increase of 61%. The fixed broadband
customer base had 2.025 million customers at 30 September 2016
(-5.0% year on year).
Other revenues declined significantly in the 3rd
quarter in connection with the end of infrastructure projects
occurring in the 4th quarter of
2015 and the decreased revenues from ICT.
Belgium & Luxembourg
Revenues in Belgium and Luxembourg increased 1.7% in the
3rd quarter of
2016 after decreasing 1.6% in the 2nd quarter. The
return to growth in the 3rd quarter was
linked in particular to a recovery in mobile equipment sales after
the 2nd quarter
downturn.
Mobile services were relatively stable in the 3rd
quarter (-0.1%). The impact of roaming price decreases in Europe,
effective from 30 April, was compensated by growth in the contract
customer base and an increase in contract ARPU (+1.5%). The mobile
contract customer base[7] (2.335
million customers at 30 September 2016) continued to grow steadily
(+2.9% year on year) and there were 1.4 million 4G users at 30
September 2016 (+65% year on year). The MVNO customer base had
1.992 million customers at 30 September 2016 (+17.3% year on
year).
At 30 September 2016, Orange Belgium had 17,600 customers of the
new Internet + TV convergent offers, with a strong increase in
September additions supported by the first advertising campaign
devoted to the new offers.
Central European countries
Revenues in the Central European Countries rose 0.8% in the
3rd quarter of
2016 after rising 1.5% in the 2nd quarter (on
a comparable basis).
In Romania, revenues increased 3.3% in the 3rd
quarter, as they did in the 2nd quarter, led
by mobile services (incoming traffic). TV services had 315,000
customers at 30 September 2016 (+26.3% year on year). The first
very high-speed fixed service offers[8], launched
last May in three cities, have been marketed at a national level
since September 5th.
In Slovakia, revenues fell 2.7% in the 3rd quarter,
after declining 1.0% in the 2nd quarter. The
downturn between the two quarters concerned fixed services to
operators, while mobile services continued to be impacted by the
erosion of ARPU.
In Moldova, revenues fell 3.7% in the 3rd quarter,
after declining 6.1% in the 2nd quarter (on
a comparable basis). The mobile services trend improved but
continued to be impacted by the significant downturn in incoming
international traffic.
The mobile customer base of the Central European Countries had 15.3
million customers at 30 September 2016. Contracts (8.1 million
customers) increased 4.4% and represented 52.9% of the mobile
customer base at 30 September 2016 (+2.5 percentage points in one
year). The 4G mobile customer base had 2.8 million customers at
that same date, an increase of 1.2 million since the beginning of
the year. There were 165,000 fixed broadband customers, an increase
of 10.6% year on year.
Africa & Middle East
Revenues from the Africa and Middle East segment rose 2.5% in the
3rd quarter of
2016 on a comparable basis. Excluding the two entities consolidated
for the first time at 30 September 2016 (Tigo in the Democratic
Republic of the Congo and Cellcom in Liberia), growth was 3.1% in
the 3rd quarter, an
improvement of 0.8 percentage points compared with the 2nd quarter
(+2.3%), while revenues continued to be impacted by the
strengthened requirement for customer identity verification in most
countries.
Mobile services rose 3.5% in the 3rd quarter, led
by data services, where growth continued to be strong (+34% in the
3rd quarter).
Similarly, Orange Money revenues increased 48% in the 3rd quarter.
Orange Money had 20 million customers at 30 September 2016 (+30%
year on year).
The principal contributors to revenue growth in the 3rd quarter were
Egypt, Guinea, Côte d'Ivoire and Mali.
The mobile customer base of the Africa and Middle East segment had
113.5 million customers at 30 September 2016, after reaching 108.5
million at 30 June. The addition of 5.0 million customers in the
3rd quarter
largely corresponded to the contributions from the two new
companies consolidated at 30 September 2016: 3.4 million customers
from Tigo in the Democratic Republic of the Congo and 1.5 million
from Cellcom in Liberia. The net additions trend improved with the
addition of 103,000 customers in the 3rd quarter,
after a decrease of 1.4 million customers in the 2nd quarter (on
a comparable basis) in connection with the strengthened requirement
for verification of customer identities in most
countries.
On 13 October 2016, Orange Egypt acquired a 4G licence for 15 years
encompassing two blocks of 10 MHz spectrum and a virtual fixed
operator's licence for 498 million USD. This acquisition gave
Orange Egypt wider spectrum and allowed it to offer its customers
better service quality than was envisaged at 30 June 2016; the
financial terms were also different from those predicted at 30 June
2016, with a price of more than 102 million USD and payment in full
made in 2016 rather than being spread out over three years.
Enterprise
Revenues from the Enterprise segment increased 0.7% in the
3rd quarter of
2016 after rising 0.3% in the 2nd quarter, on
a comparable basis. Growth of 1.0% was achieved over the first nine
months of the year, led by IT and integration services
(+4.5%).
Voice services fell a modest 1.5% in the 3rd quarter, as
in the 2nd quarter. The
downward trend of traditional telephony was largely offset by the
growth of voice-over-IP and customer relations services (contact
number services).
Data services remained stable at -0.3% in the 3rd
quarter after rising 0.5% in the 2nd quarter.
Revenues from IPVPN subscribers continued to rise steadily (+1.7%
in the 3rd quarter),
offsetting the downturn in legacy data services. There were 351,000
IPVPN subscribers at 30 September 2016, growth of 0.6% year on
year.
IT and integration services rose 4.1% in the 3rd
quarter after climbing 1.2% in the 2nd quarter. The
Cloud and security services continued their strong growth, at 16%
and 8% respectively in the 3rd quarter.
International Carriers & Shared
Services
Revenues from the International Carriers and Shared Services
segment fell 4.7% in the 3rd quarter of
2016 on a comparable basis, mostly in connection with the downturn
in services to international carriers.
Schedule of upcoming events
23 February 2017: presentation of
2016 results
Contacts
press: +33 1 44 44 93 93
Jean-Bernard Orsoni
jeanbernard.orsoni@orange.com
Tom Wright
tom.wright@orange.com
Olivier Emberger
olivier.emberger@orange.com
|
financial communications: +33 1 44 44 04 32
(analysts and investors)
Patrice Lambert-de Diesbach
p.lambert@orange.com
Constance Gest
constance.gest@orange.com
Luca Gaballo
luca.gaballo@orange.com
Caroline Maury
caroline.maury@orange.com
Samuel Castelo
samuel.castelo@orange.com
Didier Kohn
didier.kohn@orange.com |
All press releases are available
on the following websites:
www.orange.com; www.orange.es; www.orange-ir.pl;
www.orange.be; www.orange-business.com
Disclaimer
This press release contains forward-looking statements about
Orange. 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. Important factors that could cause
actual results to differ from the results anticipated in the
forward-looking statements include, among others: the success of
Orange's strategy, particularly its ability to maintain control
over customer relations when facing competition with OTT players,
Orange's ability to withstand intense competition in mature markets
and business activities, its ability to capture growth
opportunities in emerging markets and the risks specific to those
markets, fiscal and regulatory constraints and changes, and
the results of litigation regarding regulations, competition
and other matters, the success of Orange's French and international
investments, joint ventures and strategic partnerships in
situations in which it may not have control of the enterprise, and
in countries presenting additional risk, risks related to
information and communications technology systems generally,
including networks or software failures due to cyberattacks, damage
to networks caused by natural disasters, voluntary acts or other
reasons, loss or disclosure to third parties of customers data,
health concerns surrounding telecommunications equipment and
devices, Orange's credit ratings, its ability to access capital
markets and the state of capital markets in general, exchange rate
or interest rate fluctuations, and changes in assumptions
underlying the carrying amount value of certain assets and
resulting in their impairment. More detailed information on the
potential risks that could affect our financial results will be
found in the Registration Document and in the annual report on Form
20-F filed on April 4, 2016 with, respectively, the French Autorité
des Marchés Financiers (AMF) and 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 (in particular
pursuant to sections 223-1 and seq. of the General Regulations of
the AMF), Orange does not undertake any obligation to update them
in light of new information or future developments.
Appendix 1: revenues by
operating segment
|
|
|
|
|
|
|
|
2016 |
2015 |
2015 |
change |
change |
|
|
|
comparable basis |
historical basis |
comparable basis |
historical basis |
In millions of euros |
|
|
|
(in %) |
(in %) |
|
|
|
|
|
|
|
September 30 |
|
|
|
|
|
France |
14,144 |
14,289 |
14,279 |
(1.0)% |
(0.9)% |
Mobile services |
5,424 |
5,638 |
5,638 |
(3.8)% |
(3.8)% |
Mobile equipment sales |
520 |
486 |
486 |
6.9
% |
6.9
% |
Fixed services |
7,773 |
7,734 |
7,734 |
0.5
% |
0.5
% |
|
Fixed
services retail |
4,771 |
4,808 |
4,808 |
(0.8)% |
(0.8)% |
|
Fixed
wholesale |
3,002 |
2,927 |
2,927 |
2.6
% |
2.6
% |
Other
revenues |
427 |
430 |
421 |
- |
- |
Europe |
7,798 |
7,666 |
7,345 |
1.7 % |
6.2 % |
Mobile services |
4,640 |
4,504 |
4,542 |
3.0
% |
2.2
% |
Mobile equipment sales |
695 |
644 |
643 |
7.9
% |
8.1
% |
Fixed services |
2,341 |
2,359 |
1,999 |
(0.8)% |
17.1
% |
Other
revenues |
122 |
160 |
161 |
- |
- |
Of which: |
|
|
|
|
|
Spain |
3,706 |
3,520 |
3,064 |
5.3 % |
21.0 % |
Mobile services |
1,959 |
1,818 |
1,776 |
7.8
% |
10.3
% |
Mobile equipment sales |
366 |
374 |
366 |
(2.2)% |
(0.0)% |
Fixed services |
1,380 |
1,316 |
914 |
4.9
% |
51.1
% |
Other
revenues |
1 |
11 |
7 |
- |
- |
Poland |
1,963 |
2,042 |
2,145 |
(3.9)% |
(8.5)% |
Mobile services |
922 |
944 |
994 |
(2.3)% |
(7.2)% |
Mobile equipment sales |
166 |
105 |
110 |
57.7
% |
50.4
% |
Fixed services |
808 |
886 |
929 |
(8.8)% |
(13.0)% |
Other
revenues |
67 |
107 |
112 |
- |
- |
Belgium &
Luxembourg |
920 |
913 |
913 |
0.8 % |
0.8 % |
Mobile services |
762 |
753 |
753 |
1.2
% |
1.2
% |
Mobile equipment sales |
84 |
88 |
88 |
(5.3)% |
(5.3)% |
Fixed services |
54 |
61 |
61 |
(12.2)% |
(12.2)% |
Other
revenues |
21 |
11 |
11 |
- |
- |
Central European
countries |
1,215 |
1,194 |
1,227 |
1.7 % |
(1.0)% |
Mobile services |
1,002 |
991 |
1,021 |
1.1
% |
(1.9)% |
Mobile equipment sales |
80 |
76 |
78 |
4.6
% |
2.0
% |
Fixed services |
100 |
96 |
97 |
3.2
% |
3.1
% |
Other
revenues |
34 |
31 |
31 |
- |
- |
Intra-Europe eliminations |
(6) |
(2) |
(3) |
- |
- |
Africa & Middle
East |
3,887 |
3,772 |
3,587 |
3.0 % |
8.4 % |
Mobile services |
3,190 |
3,068 |
2,888 |
4.0
% |
10.5
% |
Mobile equipment sales |
56 |
58 |
55 |
(2.9)% |
3.2
% |
Fixed services |
572 |
577 |
573 |
(0.8)% |
(0.2)% |
Other
revenues |
68 |
69 |
71 |
- |
- |
Enterprise |
4,756 |
4,707 |
4,748 |
1.0 % |
0.2 % |
Voice services |
1,128 |
1,148 |
1,151 |
(1.8)% |
(2.0)% |
Data services |
2,133 |
2,129 |
2,208 |
0.2
% |
(3.4)% |
IT and
integration services |
1,495 |
1,431 |
1,389 |
4.5 % |
7.7 % |
International Carriers &
Shared Services |
1,360 |
1,386 |
1,442 |
(1.8)% |
(5.7)% |
International Carriers |
1,143 |
1,175 |
1,175 |
(2.7)% |
(2.7)% |
Shared
Services |
217 |
211 |
268 |
3.0 % |
(18.8)% |
Intra-Group eliminations |
(1,544) |
(1,562) |
(1,561) |
- |
- |
Group total |
30,401 |
30,258 |
29,841 |
0.5 % |
1.9 % |
|
|
|
|
|
|
|
|
|
2016 |
2015 |
2015 |
change |
change |
|
|
|
comparable basis |
historical basis |
comparable basis |
historical basis |
In millions of euros |
|
|
|
(in %) |
(in %) |
|
|
|
|
|
|
|
3rd
quarter |
|
|
|
|
|
France |
4,768 |
4,797 |
4,794 |
(0.6)% |
(0.5)% |
Mobile services |
1,834 |
1,906 |
1,906 |
(3.8)% |
(3.8)% |
Mobile equipment sales |
194 |
174 |
174 |
11.4
% |
11.4
% |
Fixed services |
2,590 |
2,572 |
2,572 |
0.7
% |
0.7
% |
|
Fixed
services retail |
1,593 |
1,595 |
1,595 |
(0.1)% |
(0.1)% |
|
Fixed
wholesale |
997 |
977 |
977 |
2.1
% |
2.1
% |
Other
revenues |
150 |
145 |
142 |
- |
- |
Europe |
2,670 |
2,597 |
2,652 |
2.8 % |
0.7 % |
Mobile services |
1,602 |
1,550 |
1,568 |
3.3
% |
2.2
% |
Mobile equipment sales |
242 |
208 |
222 |
16.7
% |
8.9
% |
Fixed services |
781 |
789 |
805 |
(0.9)% |
(2.9)% |
Other
revenues |
45 |
50 |
57 |
- |
- |
Of which: |
|
|
|
|
|
Spain |
1,288 |
1,194 |
1,216 |
7.8 % |
5.9 % |
Mobile services |
696 |
634 |
631 |
9.8
% |
10.2
% |
Mobile equipment sales |
127 |
116 |
128 |
9.5
% |
(1.4)% |
Fixed services |
465 |
444 |
451 |
4.6
% |
3.1
% |
Other
revenues |
1 |
1 |
6 |
- |
- |
Poland |
657 |
684 |
709 |
(3.9)% |
(7.4)% |
Mobile services |
308 |
318 |
330 |
(3.1)% |
(6.8)% |
Mobile equipment sales |
59 |
39 |
41 |
51.2
% |
45.7
% |
Fixed services |
266 |
292 |
302 |
(8.6)% |
(11.6)% |
Other
revenues |
23 |
35 |
36 |
- |
- |
Belgium &
Luxembourg |
311 |
306 |
306 |
1.7 % |
1.7 % |
Mobile services |
258 |
258 |
258 |
(0.1)% |
(0.1)% |
Mobile equipment sales |
28 |
26 |
26 |
9.0
% |
9.0
% |
Fixed services |
18 |
19 |
19 |
(7.2)% |
(7.2)% |
Other
revenues |
8 |
3 |
3 |
- |
- |
Central European
countries |
417 |
414 |
421 |
0.8 % |
(1.1)% |
Mobile services |
343 |
342 |
349 |
0.3
% |
(1.8)% |
Mobile equipment sales |
28 |
27 |
28 |
4.6
% |
2.6
% |
Fixed services |
33 |
34 |
34 |
(2.8)% |
(2.8)% |
Other
revenues |
13 |
11 |
11 |
- |
- |
Intra-Europe eliminations |
(3) |
(1) |
(1) |
- |
- |
Africa & Middle
East |
1,371 |
1,338 |
1,304 |
2.5 % |
5.1 % |
Mobile services |
1,135 |
1,097 |
1,063 |
3.5
% |
6.8
% |
Mobile equipment sales |
17 |
21 |
17 |
(17.2)% |
1.0
% |
Fixed services |
192 |
198 |
201 |
(3.2)% |
(4.6)% |
Other
revenues |
26 |
22 |
22 |
- |
- |
Enterprise |
1,567 |
1,556 |
1,577 |
0.7 % |
(0.6)% |
Voice services |
371 |
377 |
378 |
(1.5)% |
(1.8)% |
Data services |
708 |
710 |
739 |
(0.3)% |
(4.3)% |
IT and
integration services |
488 |
469 |
459 |
4.1 % |
6.3 % |
International Carriers &
Shared Services |
456 |
479 |
486 |
(4.7)% |
(6.1)% |
International Carriers |
386 |
406 |
406 |
(5.0)% |
(5.0)% |
Shared
Services |
70 |
73 |
80 |
(3.6)% |
(11.9)% |
Intra-Group eliminations |
(510) |
(527) |
(528) |
- |
- |
Group total |
10,323 |
10,240 |
10,284 |
0.8 % |
0.4 % |
Appendix 2: analysis of restated consolidated EBITDA
|
|
|
|
|
2016 |
2015 |
change |
|
|
|
comparable basis |
comparable basis |
In millions
of euros |
|
|
(in %) |
|
|
|
|
|
September 30 |
|
|
|
Revenues |
30,401 |
30,258 |
0.5 % |
External purchases |
(13,315) |
(13,109) |
1.6
% |
as % of revenues |
43.8
% |
43.3
% |
0.5
pt. |
of which: |
|
|
|
|
Interconnection costs |
(4,052) |
(4,027) |
0.6
% |
|
as % of
revenues |
13.3
% |
13.3
% |
0.0
pt. |
|
Other
network and IT expenses |
(2,190) |
(2,123) |
3.2
% |
|
as % of
revenues |
7.2
% |
7.0
% |
0.2
pt. |
|
Property,
overheads, other expenses and capitalised costs |
(2,298) |
(2,323) |
(1.1)% |
|
as % of
revenues |
7.6
% |
7.7
% |
(0.1)
pt. |
|
Commercial expenses and content costs |
(4,774) |
(4,636) |
3.0
% |
|
as % of
revenues |
15.7 % |
15.3 % |
0.4
pt. |
Labour expenses |
(6,240) |
(6,330) |
(1.4)% |
as % of
revenues |
20.5 % |
20.9 % |
(0.4)
pt. |
Operating
taxes and levies |
(1,568) |
(1,466) |
6.9 % |
Other
operating income and expenses |
232 |
137 |
- |
Restated EBITDA* |
9,510 |
9,491 |
0.2 % |
as % of
revenues |
31.3 % |
31.4 % |
(0.1)
pt. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
2015 |
change |
|
|
|
comparable basis |
comparable basis |
In millions
of euros |
|
|
(in %) |
|
|
|
|
|
3rd
quarter |
|
|
|
Revenues |
10,323 |
10,240 |
0.8 % |
External purchases |
(4,497) |
(4,440) |
1.3
% |
as % of revenues |
43.6
% |
43.4
% |
0.2
pt. |
of which: |
|
|
|
|
Interconnection costs |
(1,364) |
(1,363) |
0.1% |
|
as % of
revenues |
13.2
% |
13.3
% |
(0.1)
pt. |
|
Other
network and IT expenses |
(720) |
(722) |
(0.3)% |
|
as % of
revenues |
7.0
% |
7.1
% |
(0.1)
pt. |
|
Property,
overheads, other expenses and capitalised costs |
(770) |
(770) |
(0.0)% |
|
as % of
revenues |
7.5
% |
7.5
% |
(0.1)
pt. |
|
Commercial expenses and content costs |
(1,642) |
(1,585) |
3.6
% |
|
as % of
revenues |
15.9 % |
15.5 % |
0.4
pt. |
Labour expenses |
(1,920) |
(1,973) |
(2.7)% |
as % of
revenues |
18.6 % |
19.3 % |
(0.7)
pt. |
Operating
taxes and levies |
(350) |
(321) |
8.9 % |
Other
operating income and expenses |
42 |
33 |
- |
Restated EBITDA* |
3,597 |
3,540 |
1.6 % |
as % of
revenues |
34.9 % |
34.6 % |
0.3
pt. |
|
|
|
|
|
|
|
|
|
|
* EBITDA restatements are described
on the following page.
Bridge table of restated data to consolidated
income statement
2016 data |
3rd quarter
2016 |
|
September 30, 2016 |
In millions of euros |
Restated
data |
Presentation restatements |
Income
statement |
|
Restated
data |
Presentation restatements |
Income
statement |
Revenues |
10,323 |
- |
10,323 |
|
30,401 |
- |
30,401 |
External
purchases |
(4,497) |
- |
(4,497) |
|
(13,315) |
- |
(13,315) |
Other
operating income |
162 |
- |
162 |
|
525 |
7 |
532 |
Other
operating expense |
(120) |
(1) |
(121) |
|
(293) |
(62) |
(355) |
Labour
expenses |
(1,920) |
(36) |
(1,957) |
|
(6,240) |
(121) |
(6,361) |
Operating
taxes and levies |
(350) |
- |
(350) |
|
(1,568) |
90 |
(1,478) |
Gains
(losses) on disposal |
- |
1 |
1 |
|
- |
68 |
68 |
Restructuring costs |
- |
(10) |
(10) |
|
- |
(350) |
(350) |
Restated EBITDA |
3,597 |
(46) |
|
|
9,510 |
(367) |
|
Significant litigation |
(3) |
3 |
- |
|
37 |
(37) |
- |
Specific
labour expenses |
(34) |
34 |
- |
|
(114) |
114 |
- |
Review of
the investments and business portfolio |
1 |
(1) |
- |
|
68 |
(68) |
- |
Restructuring costs |
(10) |
10 |
- |
|
(350) |
350 |
- |
Other
specific items * |
- |
- |
- |
|
(8) |
8 |
- |
Reported EBITDA |
3,551 |
|
3,551 |
|
9,143 |
|
9,143 |
|
|
|
|
|
|
|
|
2015 pro forma data |
3rd
quarter 2015 |
|
September 30, 2015 |
In millions of euros |
Restated
data |
Presentation restatements |
Income
statement |
|
Restated
data |
Presentation restatements |
Income
statement |
Revenues |
10,240 |
- |
10,240 |
|
30,258 |
- |
30,258 |
External
purchases |
(4,440) |
- |
(4,440) |
|
(13,109) |
- |
(13,109) |
Other
operating income |
129 |
- |
129 |
|
454 |
- |
454 |
Other
operating expense |
(96) |
- |
(96) |
|
(317) |
(413) |
(730) |
Labour
expenses |
(1,973) |
(40) |
(2,013) |
|
(6,330) |
(148) |
(6,477) |
Operating
taxes and levies |
(321) |
- |
(321) |
|
(1,466) |
- |
(1,466) |
Gains
(losses) on disposal |
- |
- |
- |
|
- |
- |
- |
Restructuring costs |
- |
(49) |
(49) |
|
- |
(93) |
(94) |
Restated EBITDA |
3,540 |
(89) |
|
|
9,491 |
(654) |
|
Significant litigation |
- |
- |
- |
|
(413) |
413 |
- |
Specific
labour expenses |
(40) |
40 |
- |
|
(148) |
148 |
- |
Review of
the investments and business portfolio |
- |
- |
- |
|
- |
- |
- |
Restructuring costs |
(49) |
49 |
- |
|
(93) |
93 |
- |
Other
specific items |
- |
- |
- |
|
- |
- |
- |
Reported EBITDA |
3,451 |
|
3,451 |
|
8,837 |
|
8,837 |
|
|
|
|
|
|
|
|
2015 historical data |
3rd
quarter 2015 |
|
September 30, 2015 |
In millions of euros |
Restated
data |
Presentation restatements |
Income
statement |
|
Restated
data |
Presentation restatements |
Income
statement |
Revenues |
10,284 |
- |
10,284 |
|
29,841 |
- |
29,841 |
External
purchases |
(4,452) |
- |
(4,452) |
|
(12,838) |
- |
(12,838) |
Other
operating income |
128 |
- |
128 |
|
445 |
- |
445 |
Other
operating expense |
(99) |
- |
(99) |
|
(290) |
(525) |
(815) |
Labour
expenses |
(1,987) |
(40) |
(2,026) |
|
(6,350) |
(148) |
(6,497) |
Operating
taxes and levies |
(313) |
- |
(313) |
|
(1,457) |
- |
(1,457) |
Gains
(losses) on disposal |
- |
(1) |
(1) |
|
- |
184 |
184 |
Restructuring costs |
- |
(49) |
(49) |
|
- |
(83) |
(83) |
Restated EBITDA |
3,561 |
(90) |
|
|
9,351 |
(571) |
|
Significant litigation |
- |
- |
- |
|
(413) |
413 |
- |
Specific
labour expenses |
(40) |
40 |
- |
|
(148) |
148 |
- |
Review of
the investments and business portfolio |
(1) |
1 |
- |
|
73 |
(73) |
- |
Restructuring costs |
(49) |
49 |
- |
|
(83) |
83 |
- |
Other
specific items |
- |
- |
- |
|
- |
- |
- |
Reported EBITDA |
3,471 |
|
3,471 |
|
8,780 |
|
8,780 |
*Transaction costs related to the negotiations with Bouygues
Telecom which were incurred in Q1 2016 during discussions regarding
a possible consolidation between the two companies. |
Appendix 3: key performance indicators
|
September 30, 2016 |
September 30, 2015 |
Orange Group |
|
historical basis |
Total number of customers*
(millions) |
255.515 |
263.335 |
Mobile customers* (millions) |
194.458 |
201.675 |
- of which contract customers (millions) |
68.485 |
70.861 |
Fixed broadband customers
(millions) |
18.059 |
17.942 |
- of which FTTH customers (millions) |
2.898 |
1.487 |
TV customers (millions) |
8.200 |
7.658 |
France |
|
|
Mobile services |
|
|
Number of customers* (millions) |
29.508 |
28.226 |
- of which contract customers (millions) |
25.759 |
23.706 |
Total ARPU (euros) |
22.2 |
22.6 |
Fixed services |
|
|
Number of broadband customers (millions) |
11.056 |
10.613 |
- of which FTTH customers (millions) |
1.308 |
0.827 |
Broadband market share at end of period (%) |
40.2 ** |
39.9 |
Number of TV customers (millions) |
6.512 |
6.270 |
Broadband ARPU (euros) |
33.2 |
33.1 |
Number of fixed line subscribers (millions) |
16.062 |
16.285 |
Number of wholesale lines (millions) |
14.021 |
13.898 |
Europe*** |
|
|
Mobile services |
|
|
Number of customers* (millions) |
51.421 |
50.174 |
- of which contract customers (millions) |
32.867 |
30.830 |
Number of MVNO customers (millions) |
3.921 |
3.193 |
Fixed services |
|
|
Number of broadband customers (millions) |
6.119 |
6.001 |
- of which FTTH customers (millions) |
1.544 |
0.640 |
Number of TV customers (millions) |
1.635 |
1.341 |
Number of fixed lines (millions) |
8.842 |
9.179 |
Spain |
|
|
Mobile services |
|
|
Number of customers* (millions) |
15.846 |
15.169 |
- of which contract customers (millions) |
12.545 |
11.901 |
Total ARPU (euros) |
13.7 |
14.1 |
Number of MVNO customers (millions) |
1.923 |
1.487 |
Fixed services |
|
|
Number of broadband customers (millions) |
3.886 |
3.689 |
- of which FTTH customers (millions) |
1.411 |
0.563 |
Number of TV customers (thousands) |
458 |
215 |
Broadband ARPU (euros) |
30.9 |
28.5 |
|
|
|
* Excluding customers of MVNOs |
** Company estimate. |
*** Europe: Spain, Poland, Belgium &
Luxembourg, and Central European countries. |
|
|
|
The customer base of the Orange Group at 30
September 2015 on an historical basis included 50% of the EE
customer base, which was consolidated into the Group's customer
base. Orange and Deutsche Telekom finalised the sale of EE to BT
Group in January 2016. |
|
September 30, 2016 |
September 30, 2015 |
Poland |
|
historical basis |
Mobile services |
|
|
Number of customers* (millions) |
16.394 |
15.693 |
- of which contract customers (millions) |
9.085 |
8.087 |
Total ARPU (PLN) |
28.7 |
30.5 |
Fixed services |
|
|
Number of broadband customers (millions) |
2.025 |
2.131 |
- of which VHBB customers (VDSL and FTTH,
thousands) |
436 |
271 |
Number of TV customers (thousands) |
761 |
774 |
Broadband ARPU (PLN) |
60.5 |
61.0 |
Number of fixed lines (millions) |
4.797 |
5.295 |
Belgium & Luxembourg |
|
|
Mobile services |
|
|
Number of customers* (millions) |
3.925 |
3.974 |
- of which contract customers (millions) |
3.164 |
3.112 |
Total ARPU - Belgium (euros) |
24.3 |
23.9 |
Number of MVNO customers (millions) |
1.992 |
1.699 |
Fixed services |
|
|
Number of broadband customers (thousands) |
43 |
32 |
Number of TV customers (thousands) |
22 |
2 |
Number of telephone lines (thousands) |
159 |
196 |
Central European countries |
|
|
Mobile services |
|
|
Number of customers* (millions) |
15.255 |
15.338 |
- of which contract customers (millions) |
8.073 |
7.730 |
Fixed services |
|
|
Number of broadband customers (thousands) |
165 |
150 |
Number of TV customers (thousands) |
394 |
350 |
Africa & Middle East |
|
|
Mobile services |
|
|
Number of customers* (millions) |
113.530 |
111.177 |
- of which contract customers (millions) |
9.859 |
8.726 |
Fixed services |
|
|
Number of broadband customers (thousands) |
884 |
865 |
Total number of telephone lines (thousands) |
1,110 |
1,152 |
Enterprise |
|
|
France |
|
|
Number of legacy telephone lines (thousands) |
2,857 |
3,001 |
Number of IP-VPN accesses (thousands) |
295 |
294 |
Number of XoIP connections (thousands) |
93 |
87 |
World |
|
|
Number of IP-VPN accesses worldwide (thousands) |
351 |
349 |
* Excluding customers of MVNOs. |
|
|
Appendix 4: glossary
Key figures
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.
Reported EBITDA: operating income before
depreciation and amortisation, before revaluation related to
acquisitions of controlling interests, before impairment of
goodwill and assets, and before income from associates. EBITDA is
not a financial aggregate as defined by IFRS standards and may not
be directly comparable to similarly named indicators in other
companies.
Restated EBITDA: Reported EBITDA (see definition),
adjusted for the impacts of key disputes, specific labour expenses,
the review of the portfolio of shares and operations, the cost of
restructuring and, as applicable, other specific and systematically
identified items. Since the 1st quarter of 2016, restated EBITDA
excludes all income from the disposal of shares and operations,
regardless of the amount, and the restated EBITDA for past periods
was revised accordingly. Restated EBITDA is not a financial
aggregate as defined by IFRS standards and may not be directly
comparable to similarly named indicators in other companies.
CAPEX: capital expenditure on tangible and
intangible assets excluding telecommunication licences and
investments through finance leases. CAPEX is not a financial
performance indicator as defined by IFRS standards and may not be
directly comparable to indicators referenced by the same name in
other companies.
Mobile services
Revenues from mobile services: include revenues generated by
incoming and outgoing calls (voice, SMS and data services), network
access fees, added-value services, machine to machine, roaming
revenues from customers of other networks (national and
international roaming), revenues with mobile virtual network
operators (MVNO) and revenues from network sharing.
Mobile ARPU: the annual average revenues per user
(ARPU) are calculated by dividing the revenues from incoming and
outgoing calls (voice, SMS and data services), network access fees,
added-value services and visitor roaming over the past twelve
months, by the weighted average number of customers over the same
period, excluding "machine to machine" customers. The weighted
average number of customers is the average of the monthly averages
during the period in question. The monthly average is the
arithmetic mean of the number of customers at the start and end of
the month. Mobile ARPU is expressed as monthly revenues per
customer.
Roaming: use of a mobile service on the network of
an operator other than that of the subscriber.
MVNO: Mobile Virtual Network Operator. These are
operators that do not have their own radio network and thus use the
infrastructure of third-party networks.
Fixed services
Includes traditional fixed telephony, fixed broadband services,
enterprise solutions and networks[9] and carrier
services (notably national and international interconnections,
unbundling and wholesale telephone line rentals).
Fixed broadband ARPU (ADSL, FTTH, VDSL, satellite
and WiMAX): the average revenues per user (ARPU) of broadband
services per year are calculated by dividing the revenues generated
by retail broadband services over the past twelve months by the
weighted average number of accesses over the same period. The
weighted average number of accesses is the average of the monthly
averages during the period in question. The monthly average is the
arithmetic mean of the number of accesses at the start and end of
the month. Fixed broadband ARPU is expressed as monthly revenues
per access.
[1] Excluding
machine-to-machine.
[2] Subject to
approval at the annual shareholders meeting.
[3] The
ex-dividend date is set at 5 December 2016 and the recording date
at 6 December 2016.
[4] On an
historical basis, revenues at 30 September 2016 recorded an
increase of 1.9% in relation to the previous year, which
included:
- the impact of changes in consolidation scope (+2.3
percentage points), in particular with the acquisition of Jazztel
and the full consolidation of Méditel from 1 July 2015; the
acquisition of Cellcom in Liberia and Tigo in the Democratic
Republic of the Congo, which were fully consolidated at 30
September 2016 retroactively to the date of acquisition (6 months
and 5 months of operations respectively); the sale of 80% of
Dailymotion on 30 June 2015 (+10% on 30 July); and the sale
of Orange Armenia on 3 September 2015;
- the impact of variations in foreign exchange (-0.9
percentage points), in particular with the decline in the Polish
zloty and the Egyptian pound.
[5] Including
the acquisitions of telecommunication licences (1.054 billion
euros) and investments financed by capital leases (84 million
euros), total CAPEX on tangible and intangible assets was 5.871
billion euros in the first nine months of 2016. In the 3rd quarter of
2016, CAPEX on tangible and intangible assets was 1.683 billion
euros, including 79 million euros related to acquisitions of
telecommunication licences and 38 million euros related to
investments financed by capital leases.
[6] Excluding
machine-to-machine.
[7] Excluding
machine-to-machine contracts.
[8] Pursuant to
the agreement with Telekom Romania for the use of its fibre optic
network in urban areas.
[9] With the
exception of France, where entreprise solutions and networks are
listed under the Enterprise business segment.
Third quarter 2016 financial
information
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Orange via Globenewswire
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