Latest consolidated results
1st quarter 2017 financial information: the increase in Q1 2017 revenue and adjusted EBITDA confirms the successful return to growth in 2016
- Commercial momentum was very strong in the 1st quarter of 2017, supported by convergence and very high-speed fixed and mobile broadband in Europe.
Consumer convergent offers in Europe continued the strong growth of previous quarters, with 259,000 net sales in the 1st quarter of 2017. Year on year, consumer convergent offers rose 11.2%, with 9.5 million customers at 31 March 2017. Convergence is a real catalyst for Orange’s growth in Europe.
Growth of the Group’s fixed broadband services remained strong, with 200,000 net sales in the 1st quarter of 2017, led by fibre (362,000 net sales). The fixed broadband base was 19.0 million customers at 31 March 2017 (+4.6% year on year on a comparable basis), including 3.7 million fibre customers (+64% year on year).
Mobile contract1 net sales of 298,000 were achieved in the 1st quarter of 2017 with customer base growth of 4.1% year on year on a comparable basis. Mobile 4G in Europe continued to grow rapidly, rising 48% year on year with 29.5 million customers at 31 March 2017. 4G represented 58.4% of the contract base1 in Europe at that date, a year-on-year increase of 17.4 percentage points.
In Africa and the Middle East, net mobile sales improved very significantly with 2.7 million net additions in the 1st quarter of 2017, led in particular by Mali, Burkina Faso, Côte d’Ivoire and Senegal. Orange Money had 30.8 million customers at 31 March 2017, a 74% increase year on year.
- Revenues rose 0.8% in the 1st quarter of 2017 (10.070 billion euros), after rising 1.0% in the 4th quarter of 2016 (comparable basis), led 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.
On the publication of the results for the 1st quarter of 2017, Stéphane Richard, Chairman and CEO of the Orange Group, commented: "The first quarter confirms the improvement in the 2016 trend. Revenues are growing, driven by solid commercial performances, particularly in France, Spain and Poland.
The strategy Orange has pursued over a number of quarters, centred on convergence around the home, the best connectivity in the market due to our sustained investment, and an unparalleled customer experience, is bearing fruit. For the fourth consecutive quarter, adjusted EBITDA is growing, underpinning our objective for 2017 of delivering adjusted EBITDA higher than 2016 on a comparable basis.
Lastly, Orange's diversification into financial services will move into a new phase in 2017. In Africa, Orange Money crossed the 30 million customer mark this quarter, growing by 74% in one year, while in France, the Orange Bank offer will be launched with Orange employees in mid-May and for the general public on 6 July 2017.”
The entire press release is available on PDF file
1 Excluding machine-to-machine.