France Telecom introduces a new business segment analysis and implements IFRS 8
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Paris, April 22, 2009
In order to reflect changes in its organisation and to comply with the IFRS 8 accounting standard for business reporting, France Telecom Group is changing how it reports its operating segments, moving from an analysis by activity (Personal Communications Services, Home Communications Services, Business Communications Services) to an analysis by geography. The new business segments will now be:
- France
- United Kingdom
- Spain
- Poland
- Rest of the World
- Enterprise
- International Carrier and Shared Services.
This new segment analysis will now be used for all future financial reports from the first quarter of 2009.
Beyond the requirements of IFRS 8, the Group will continue to publish additional financial and operational information about its fixed and mobile business activities in each of its principal countries.
EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) will also now replace Gross Operating Margin (GOM) as the key indicator of operating profitability. The switch from GOM to EBITDA involves incorporating the following items:
- employee profit-sharing
- share-based compensation
- gain / loss on disposals of assets
- restructuring costs
- share of profit / loss of associates.
These changes in business segments analysis of operational and financial indicators do not impact the Group's past results, its objectives or its outlook.
To help understand the transition between the old and new business segments, additional information can be found at the following address http://www.orange.com/en_EN/finance/ :
- a presentation explaining the new business segments in detail
- an Excel file showing the financial and operational indicators, quarter by quarter, since 2007, of the new segments.
- France
- United Kingdom
- Spain
- Poland
- Rest of the World
- Enterprise
- International Carrier and Shared Services.
This new segment analysis will now be used for all future financial reports from the first quarter of 2009.
Beyond the requirements of IFRS 8, the Group will continue to publish additional financial and operational information about its fixed and mobile business activities in each of its principal countries.
EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) will also now replace Gross Operating Margin (GOM) as the key indicator of operating profitability. The switch from GOM to EBITDA involves incorporating the following items:
- employee profit-sharing
- share-based compensation
- gain / loss on disposals of assets
- restructuring costs
- share of profit / loss of associates.
These changes in business segments analysis of operational and financial indicators do not impact the Group's past results, its objectives or its outlook.
To help understand the transition between the old and new business segments, additional information can be found at the following address http://www.orange.com/en_EN/finance/ :
- a presentation explaining the new business segments in detail
- an Excel file showing the financial and operational indicators, quarter by quarter, since 2007, of the new segments.
press contacts
Béatrice Mandine, +33 1 44 44 93 93, beatrice.mandine@orange-ftgroup.com
Tom Wright, +33 1 44 44 93 93, tom.wright@orange-ftgroup.com
Tom Wright, +33 1 44 44 93 93, tom.wright@orange-ftgroup.com
© France Telecom - Orange 2012
