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Consolidated revenues of 21.843 billion euros for the first half of 2012 remained stable at -0.1% compared with the first half of 2011, in line with the first quarter results on a comparable basis and excluding the impact of regulatory measures:
- In France, the revenue decline was limited to 2.0%. The success of Sosh (367,000 clients at 30 June 2012), Open (2.1 million customers) and the new Origami offers helped stabilise Orange’s market share on the mobile market, estimated at 38.1% at 30 June 2012, compared with 38.3% at the end of March. The second quarter net loss of customers (-155,000) was one fourth of that in the first quarter, with a return to growth in the retail contract customer base in June (+27,000). The national roaming contract signed with the new market entrant partially offset the revenue decline in the retail mobile market;
- Spain continued its strong growth (+4.8% for the six-month period), led by sustained growth in fixed broadband services and the rapid development of Internet browsing on mobiles;
- Revenues in Poland declined 1.1%, while remaining stable in other European countries;
- Africa and the Middle East confirmed the improvement seen in the first quarter, with 6.2% growth over the half year period;
- The decline in revenues in the Enterprise segment was limited to 2.6%. - Restated EBITDA was 7.004 billion euros, with margin decline limited to 1.6 percentage points (32.1% of revenue for the first half of 2012) on a comparable basis, due to control of commercial costs and the results of the Chrysalid plan.
- CAPEX rose 1.0% to 2.460 billion euros compared to the first half of 2011 on a comparable basis, for a ratio of CAPEX to revenues of 11.3%. CAPEX in very high-speed broadband (FTTH) and mobile broadband (4G) accelerated.
- Net income was 1.909 billion euros for the first half of 2012, versus 2.095 billion euros in the first half of 2011.
- Operating cash flow (restated EBITDA – CAPEX) for the first half of 2012 was 4.544 billion euros.
- Net debt was 31.177 billion euros at 30 June 2012, a reduction of 1.154 billion euros compared to the restated net debt at 31 December 2011. The restated ratio of net debt to EBITDA was 2.11 at 30 June 2012.
The Group confirms its operating cash flow target of close to 8 billion euros* for 2012 and reiterates its commitment to return to a net debt/EBITDA ratio of 2 in the medium term in order to protect the Group's financial health in all circumstances. Based on the results of the first half of 2012, an interim dividend for 2012 of 0.58 euros per share** will be paid in cash on 12 September 2012.
Commenting on the first-half 2012 results, France Telecom–Orange Chairman and CEO Stéphane Richard said: “Against the backdrop of a difficult macro-economic environment, I would like to emphasise the robustness of our first-half results, particularly the resilience of our French mobile operations which showed a marked improvement from the first quarter with a return to growth in the contract customer base in June. Spain and the emerging countries continued to underpin the Group's performance with revenue growth in the first half of 4.8% and 6.2% respectively. We are continuing the deployment of our very fast broadband and 4G networks, the engines of our future growth. I also welcome the recent stance taken by public authorities, European and national, as to the importance of our sector in matters of investment, employment and growth. Finally, the latest results from our internal employee satisfaction survey testify to the improved work environment and greater cohesion within the Group, without which this financial performance could not have been achieved.”
read the entire press release on the PDF file enclosed
*Including the impact of around 120 million euros for the payment of pension contributions for France Telecom–Orange employees in France with civil servant status.
**Corresponding to 0.60 euros minus the new 3% tax on dividends.
press releaseabout Orange
France Telecom-Orange is one of the world’s leading telecommunications operators with sales of 45.3 billion euros for 2011 and has 170,000 employees worldwide at 30 September 2012, including 105,000 employees in France. Present in 33 countries, the Group has a total customer base of 227 million customers at 30 September 2012, including 169 million mobile customers and 15 million broadband internet (ADSL, fibre) customers worldwide. Orange is one of the main European operators for mobile and broadband internet services and, under the brand Orange Business Services, is one of the world leaders in providing telecommunication services to multinational companies.
With its industrial project, "conquests 2015", Orange is simultaneously addressing its employees, customers and shareholders, as well as the society in which the company operates, through a concrete set of action plans. These commitments are expressed through a new vision of human resources for employees; through the deployment of a network infrastructure upon which the Group will build its future growth; through the Group's ambition to offer a superior customer experience thanks in particular to improved quality of service; and through the acceleration of international development.
France Telecom (NYSE:FTE) is listed on NYSE Euronext Paris (compartment A) and on the New York Stock Exchange.
For more information (on the internet and on your mobile): www.orange.com, www.orange-business.com, www.orange-innovation.tv or to follow us on Twitter: @presseorange.
Orange and any other Orange product or service names included in this material are trade marks of Orange Brand Services Limited, Orange France or France Telecom.
