Orange Telecom has just released its Q1 2016 result showing its first quarter 2016 revenues grew for the third consecutive quarter, up 0.6%, after rising 0.1% in the 4th quarter of 2015 and 0.5% in the 3rd quarter year on year basis.
Growth resumed in Spain (+1.8%) after nine consecutive quarters of decline, while the Belgium and Luxembourg segment rose 2.3% as in the 4th quarter of 2015, and the decline in mobile services in Poland was limited to 2.1%.
The Enterprise segment increased 2.1%, led by IT and integration services, while growth continued to be strong in Africa and the Middle East, rising 4.4% in the 1st quarter. Meanwhile, revenues in France declined 0.7%, mostly due to the increased drop in national roaming.
The result also showed that underlying operating performance increasing: excluding the impact of the employee shareholding operation, 1st quarter restated EBITDA rose 0.3% and the restated EBITDA margin fell 0.1 percentage points. Restated EBITDA for the 1st quarter of 2016 was 2.569 billion euros, a decrease of 1.6% on a comparable basis, while the restated EBITDA margin (25.7%) declined 0.6 percentage points. The Group confirms the objective for the full year of higher restated EBITDA in 2016 than in 2015 on a comparable basis.
Capital expenditure, CAPEX was 1.457 billion euros in the 1st quarter of 2016 rose 10.4% on a comparable basis, in line with the Essentiels2020 strategic plan, representing 14.6% of revenues. CAPEX on fibre rose sharply, mainly in France. CAPEX related to mobile networks continued to be strong, in particular with the continued deployment of 4G and 4G+. At the same time, the programme to improve the customer experience expanded with the opening of new Smart Stores.
Commenting on the results, Stéphane Richard, Chairman and CEO of the Orange Group, stated: “For the third consecutive quarter, Orange revenues have grown, again validating our strategy of differentiation through quality and investment. This is due to the strong commercial performance in all Group countries, particularly France, Spain, Belgium, Romania and the Africa and Middle East region as well as in the Enterprise market. These good results are the fruit of our sustained investment efforts in very high-speed fixed and mobile broadband, in line with our Essentials2020 plan.
“In Europe, we doubled the number of our 4G customers in just one year, reaching 20 million. We also reaffirmed our status as the leading fibre operator in Europe where we more than doubled the number of fibre customers to in excess of 2.2 million, principally driven by France and Spain with the successful integration of Jazztel.” he said
He added that “During the quarter, we also continued the development of our operations in Africa by becoming an operator in Liberia, consolidating our presence in the Democratic Republic of the Congo and investing in Africa Internet Group, the e-commerce leader on the continent. Very recently, we laid the foundations for our future mobile banking services by signing an agreement that will allow us to take a stake of 65% in Groupama Banque, which will become Orange Bank.”
Content on this site, including news, quotes, data and other information, is sourced by PageOne.ng from official and public sources and other third party content providers for your personal information only, and is not intended for trading purposes. Content on this site is not appropriate for the purposes of making a decision to carry out a transaction or trade. Nor does it provide any form of advice (investment, tax, legal) amounting to investment advice, or make any recommendations regarding particular financial instruments, investments or products.