Orange Telecom said its net income for 2016 rose to EUR3.263 billion.
The result shows an increase of 10.3% compared to 2015 (+305 million euros). Net income attributable to equity owners of the Group was 2.935 billion euros in 2016, versus 2.652 billion euros in 2015.
The company said its commercial momentum remained strong in the 4th quarter, led by fibre (393,000 net additions) and retail convergent offers (239,000 net additions). There were 3.3 million fibre customers at 31 December 2016 (+75% year on year) and retail convergent offers counted 9.2 million customers (+10% year on year). The growth of mobile contracts1 continued to be strong, with 620,000 net sales for the quarter (+5.3% year on year). 4G in Europe was up 58% year on year with 28.1 million customers at 31 December 2016. Orange Money had 28.9 million customers at that date.
Revenues were 40.918 billion euros in 2016, a 0.6% increase after falling 0.1% in 2015 and 2.5% in 2014 (on a comparable basis). In the 4th quarter of 2016, revenues rose 1.0% after rising 0.8% in the 3rd quarter and 0.3% in the 1st half. The improving trend continued, led by Europe (particularly Spain), although mobile services were still impacted by decreased revenues from national roaming in France and roaming price reductions in Europe.
The Group’s adjusted EBITDA was 12.682 billion euros in 2016, an increase of 1.3% (+158 million euros) on a comparable basis, in line with the objective of a higher adjusted EBITDA in 2016 than in 2015. Adjusted EBITDA from telecoms activities (12.694 billion euros) rose 1.3% (+164 million euros). The adjusted EBITDA margin rate from telecoms activities was 31.0%, an improvement of 0.2 percentage points in relation to 2015.
Group operating income was 4.077 billion euros in 2016, a decrease of 665 million euros compared with 2015. Operating income from telecoms activities was 3.992 billion euros, a decrease of 750 million euros. Orange Bank had operating income of 85 million euros in 20162.
The Group’s CAPEX (6.971 billion euros in 2016) increased 3.0% on a comparable basis. CAPEX related to telecoms activities (6.956 billion euros) rose 2.8% and was equivalent to 17% of revenues from telecoms activities (+0.4 percentage points compared with 2015). Investments in fibre were up while 4G and 4G+ deployment continued, in line with the goals of the Essentiels2020 strategic plan.
Net debt was 24.444 billion euros at 31 December 2016, a reduction of 2.108 billion euros year on year, related in particular to the sale of EE in January 2016. The ratio of net financial debt to adjusted EBITDA from telecoms activities was 1.93x at 31 December 2016 versus 2.01x one year earlier, in line with the objective of a ratio of about 2x in the medium term.