Prioritising operational efficiency, financial solidity and marketing and technological innovation in 2012

The Group had a number of commercial successes in 2011:
-    an 8.0% increase in total Group customers to 226.3 million at 31 December 2011, led by rapid growth in mobile services in Africa and the Middle East, which now includes Iraq and the Democratic Republic of Congo.
-    a 30.5% ADSL market share for the year in France, with the consumer mobile market share stabilized at about 40% and the Open quadruple-play offer with 1.2 million customers at 31 December 2011.
-    growth in mobile revenues accelerated in Spain to +7.1% in 2011 from +3.6% in 2010, despite a very difficult economic environment.
-    offers attracting more than a million customers: Deezer (1.2 million customers at 31 December 2011), Orange Money in Africa (3.2 million customers at 31 December 2011).
-    Successful 4G auctions in France and Spain.

Consolidated revenues were 45.277 billion euros, in line with recent Group expectations and stable compared with 2010 on a comparable basis and excluding the impact of regulatory measures.

Restated EBITDA was 15.083 billion euros with erosion in the restated EBITDA margin (33.3%) limited to -1.1 points, in line with Group expectations.

CAPEX increased 3.3% year on year to 5.770 billion euros, equal to 12.7% of revenues, on a comparable basis, in line with the 2011-2013 trajectory. 

Restated operating cash flow (EBITDA – CAPEX) was 9.313 billion euros, exceeding the operating cash flow target of slightly more than 9 billion euros in 2011.

Net debt was 32.331 billion euros at 31 December 2011*. The restated ratio of net debt/EBITDA was 2.09.

The Group confirms the payment of a dividend of 1.40 euros for 2011, with the balance of 0.80 euros per share to be paid in cash on 13 June 2012**.

The Group anticipates operating cash flow of close to 8 billion euros in 2012 and confirms its Conquests 2015 strategic plan. Given the uncertain macro-economic and competitive environment, the Group has decided to adapt its shareholder remuneration policy by aligning it with operating cash flow generation. The total amount allocated to dividends for fiscal years 2012 and 2013 should be within the range of 40% to 45% of operating cash flow in order to preserve, in all conditions, the Group’s financial strength and maintain a net debt/EBITDA ratio of about 2 in the medium term.

Commenting on the publication of the Group’s 2011 results, France Telecom-Orange Chairman and CEO Stéphane Richard said:
“The improvement in our commercial position in 2011 in France, Spain and most of the countries in which we are present in Africa and the Middle East, enabled us to achieve our financial objectives despite a more challenging environment than expected. I would like to thank the Group’s 170,000 employees for this achievement.
Having acquired a foothold in Iraq and the Democratic Republic of Congo this year, the Group now serves more than 226 million customers around the world. We are conscious that the macro-economic and competitive context in 2012 remains uncertain, and are therefore further strengthening the rigorous financial and operational management approach taken in 2011, and we have decided to adapt our shareholder remuneration policy to ensure the financial strength of the Group at all times. I am more convinced than ever that Orange, which has returned to fighting form, will set itself even further apart in the months to come by relying on its excellent fundamentals: its networks, its capacity for innovation and, of course, the teams which serve our customers. I am therefore approaching the year with confidence and confirm the direction set out in the Group’s Conquests 2015 strategic plan“.
 

the complete press relase is available on the attached pdf file

*Including a payment on 19 January 2012 related to the acquisition of a 4G license (800MHz) in France and a payment on 13 January 2012 related to the dispute between Danish company DPTG and TP S.A. in Poland.
**Subject to approval by the Annual General Meeting of Shareholders.