Orange Telecom said its revenue slightly grew by 0.8% in the first quarter of 2017.
The result showed that Orange will need non-organic approach to lift its revenue base or continue to face sluggish growth going forward.
Revenue for the quarter was EUR10.070 billionled by the Europe zone and in particular by strong growth in Spain. Fixed broadband services increased 6.3% in the 1st quarter of 2017 related to growth in fibre and TV content in France and Spain. Mobile services were stable at -0.2% and continued to be impacted by the decreased revenues from national roaming in France and the decline in roaming prices in Europe.
The Group’s adjusted EBITDA was 2.598 billion euros in the 1st quarter of 2017, an increase of 2.0% (+50 million euros) on a comparable basis. Adjusted EBITDA from telecom activities (2.611 billion euros) rose 2.2% (+57 million euros). The adjusted EBITDA margin rate from telecom activities was 25.9%, an improvement of 0.3 percentage points compared to the 1st quarter of 2016.
The Group’s CAPEX (1.493 billion euros in the 1st quarter of 2017) increased 2.1% on a comparable basis. CAPEX rose 1.4% in telecom activities (1.484 billion euros), while the ratio of CAPEX to revenues from telecom activities was 14.7% (+0.1 percentage points compared with the 1st quarter of 2016). Investment in fibre and very high-speed mobile (4G and 4G+) increased, in line with the goals of the Essentiels2020 strategic plan.
In the early part of the year, Orange said it was looking at more acquisition across Africa, however, there are no concrete discussions going on. Last year, the company acquired Airtel Burkina Faso, a local unit that has now began operations.
The company said it will further acquisition discussions with Bharti Airtel B.V. on a case by case basis.