France Telecom-Orange reports solid first quarter results, in line with its guidance for 2011, despite intensified pressures in certain markets
Paris, May 03, 2011
Group customers totalled 215.9 million at 31 March 2011, a 7.0% year-on-year increase on a comparable basis, led by 25% mobile growth in Africa and the Middle East.
Consolidated revenues increased 0.4% to 11.228 billion euros, excluding the impact of regulatory measures, with mobile services performing well in France (+5.9%), Spain (+7.0%) and Poland (+4.5%), driven by the success of smartphones and segmented offers.Rapid growth continued in emerging markets, despite difficult conditions in Egypt and Côte d’Ivoire.Restated EBITDA was 3.734 billion euros in the first quarter of 2011. The EBITDA margin was 33.3%, down 1.3 percentage points versus the first quarter of 2010, notably due to the unfavourable impact of the partial pass-through of the VAT increase starting 1 January 2011.CAPEX was equal to 9.6% of revenues, representing 1.081 billion euros in investments, in line with the target CAPEX rate of about 13% for the year.First quarter results are in line with the Group's guidance for 2011. The Group renews its commitment to paying a dividend of 1.40 euros per share for 2011 and 2012.
Commenting on the operating results for the first quarter of 2011, the Chairman and CEO of France Telecom-Orange, Stéphane Richard, said:
“The Group’s operating and financial performance for the first quarter is strong, despite intensified competition in France and exceptional political conditions in certain emerging countries.
“In France, the Group successfully overcame increased market turbulence and regulatory changes – most notably following the increase in VAT – with significant gains in the ADSL market thanks to the success of the Open quadruple play offer. The Group was also able to address difficult conditions in Egypt, Côte d’Ivoire and Tunisia. The Group performed very well in Spain, with revenues growing 4%, as well as in the continually improving Enterprise market.
“These solid first-quarter results are in line with our financial objectives for the whole of 2011, and sit squarely with the implementation of our Conquest 2015 plan as well as the creation of a new social contract in France."
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1/ EBITDA is restated to reflect the impact of the additional provision related to the Part Time for Seniors Plan.
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 Euronext Paris (compartment A) and on the New York Stock Exchange.
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