Dear shareholders,
Our overall Group results underline our solid performance in 2021. Indeed, we’re meeting our commitments and remain on track to achieve our 2023 targets, including organic cash flow generation of between €3.5 and 4 billion.
Through our investments, we have become Europe’s leading fiber provider with a vast network covering the entire scope of the Group with more than 56 million connectable households. We are also the leader in Europe for convergence with 11.5 million customers. This is being further strengthened through our acquisition of a controlling stake in TKR in Romania and agreement to acquire VOO in Belgium.
In our main market, France, we are achieving strong sales performance, and customer satisfaction is also constantly improving. In addition, French regulator Arcep confirmed our leadership in mobile network quality for the 11th year running.
Africa remains remarkably dynamic, achieving +11% growth in revenue and more than 44 million 4G customers. Our bold move into cybersecurity and banking is also paying off. With revenue exceeding €800 million, cybersecurity increased +14% in 2021, while Orange Bank now has 1.7 million customers in Europe. Finally, our “Scale Up” operating efficiency program is well underway, and we are continuing our efforts in this domain.
The Group’s excellent sales performance has actively contributed to us achieving our 2021 targets even when facing significant challenges. Aside from non-operational factors such as our employee shareholding offer, our margins and organic cash flow are growing. I would like to express my gratitude to all our teams around the world who have worked hard to achieve these results.
My mandate as Chairman and CEO of the Orange Group comes to an end in a few weeks, and it is with great pride that I look back on all that has been accomplished over the past 12 years. I am confident about the future, as Orange is a solid company that has been able to seize new growth opportunities while strengthening its network leadership.
Stéphane Richard, Chairman and CEO Orange
Growth strategy
In line with our Engage 2025 strategic ambitions – to enhance connectivity and develop our key growth drivers – we’re continuing to increase the value of our fixed and mobile networks and raise our profile in mobile financial services.
Orange Belgium: a major step forward
Orange Belgium agrees to acquire 75% minus one share in VOO, the telecom operator that owns the cable network in the Walloon region and part of the Brussels region. VOO offers a portfolio of fixed and mobile telephony, very high-speed broadband and TV television services so this acquisition marks a major step forward in the deployment of our convergence strategy in Belgium.
Exclusive discussions between Orange and Másmóvil
Digital technology holds immense promise, so long as it has a positive social and environmental impact. That’s why we have a responsible approach to innovation, while ensuring as many people as possible can take advantage of it. Find out more.
Our broadband networks: what’s new in 2022?
Our networks are the foundation of our society’s essential services and the backbone of our business. To adapt to our customers’ needs and uses, we continue to develop our networks and supporting infrastructure. Here is our latest progress since the launch of our Engage 2025 strategic plan.
Where are we with 5G?
We have already launched 5G in 6 countries (France, Spain, Belgium, Luxembourg, Poland, and Romania), and opened numerous 5G Labs, which enable our partners to discover and test new 5G uses. Discover how Orange supports its industrial partners in transforming their business activities and managing their business in real time.
Our commitment to the environment and digital equality
As part of our responsible and committed business model, we are continuing our efforts to achieve our objective of net zero carbon by 2040 and have also deployed several major projects and initiatives to promote digital equality.
Use of reconditioned equipment by Orange and Nokia
This is the circular economy in action. Following the launch of the OSCAR platform, which is a marketplace aimed at reusing network equipment, Orange has signed an agreement with Nokia to increase the use of refurbished equipment in telecommunications infrastructures. Refurbished Nokia network equipment will be sold to all Orange subsidiaries via BuyIn, the purchasing alliance set up by Orange and Deutsche Telekom.
Giving mobile phones a second life
Orange has been involved in phone recycling for 10 years and has already collected more than 15 million phones in all the countries where the Group is present. Our ambition is to go much further. A hundred million phones are still sleeping in our drawers, and we think it's time to wake them up.
You can support this movement by bringing your old or unwanted mobile phones back into an Orange shop for recycling.
Investing in carbon sequestration with Orange
In line with the commitments made at COP21 to achieve carbon neutrality by 2040, Orange is rolling out its own roadmap to reduce its environmental footprint. Discover more about our carbon capture financing programs – which include reforestation and restoring natural ecosystems, to create carbon sinks that naturally and sustainably absorb the CO2 present in the atmosphere.
Democratizing digital access with Orange Digital Centers
The Group has recently opened two new Orange Digital Centers, in Egypt and Jordan, following a successful launch in Tunisia, Morocco, Senegal, Ethiopia, Mali, Côte d'Ivoire and Cameroon. This builds on our promise to improve digital inclusion through free spaces dedicated to skills development through a range of activities that enable young people to increase their employment prospects and entrepreneurship.
Did you know? For the 11th year in a row Orange is 1st on network quality
Orange innovation
Digital technology holds immense promise, so long as it has a positive social and environmental impact.
That’s why we have a responsible approach to innovation, while ensuring as many people as possible can take advantage of it.
2021 annuals results
Revenues
EBITDAaL
telecom activities
Consolidated net income
eCapex
exclunding licenses
Net debt / EBITDAaL telecom activities
Organic cash-flow telecom activities
Changes are expressed on a comparable basis, with the exception of net income, Group share. A definition of EBITDAal and eCAPEX is available in the appendix to the financial results press release of February 17, 2022.
Comments on the financial results
Revenues up 0.8%1 for the full year 2021, driven by the solid performance of Africa & Middle East (+10.6%) and a strong increase in equipment sales (+8.5%).
Excellent performance in Fiber: 11.8 million fiber (FTTH) customers (+22.1%) out of 56.5 million connectable households (+19.7%). In France, the FTTH customer base recorded a year-on-year increase of 31.7%.
EBITDAaL 0.5% lower for the year, in line with the target. Excluding the 2021 employee shareholding program, EBITDAaL was up 0.8% as a result of the notable performances in Africa & Middle East and Europe excluding Spain, which offset the decline in Spain, the Enterprise segment and France. Excluding co-financing, France posted year-on-year EBITDAaL growth of 1.5% with a very strong commercial performance.
eCAPEX rose 7.8% in 2021 to 7.7 billion euros, in line with the target, after the high level of co-financing and the pandemic-related slowdown in investment seen in 2020. eCAPEX began to decline in the second half of the year.
Organic cash-flow from telecoms activities stood at 2.4 billion euros, fully in line with the goal to exceed 2.2 billion euros.
Shareholders’ Meeting of May 19, 2022 will decide on the distribution of a dividend of 0.70 euro per share.
Convergent customers
11,5 M
+2,4 %
Mobile services
224,3 M access lines
+4,3 %
Fixe services
46,4 M access lines
-1,7 %
include 11,8 M households with FTTH et 56,5 M households with FTTH connectivity worldwide
Mobile financial services
1,7 M customers in Europe
0,7 M customers in Africa
2022 targets
Orange has set itself the following targets for 2022:
- EBITDAaL to increase by 2.5% to 3%
- eCAPEX no greater than 7.4 billion euros
- Organic cash flow from telecoms activities of at least 2.9 billion euros
- Net debt/EBITDAaL ratio for telecoms activities unchanged at around 2x in the medium term
- Maintaining the dividend for the financial year 2022 at 0.70 euros including an interim dividend of 0.30 euros in December 2022
- For 2023, Orange confirms all of its commitments including organic cashflow from telecoms activities of at least 3.5 billion euros.
Dividend
For the fiscal year 2021, the Shareholders' Meeting of May 19, 2022 will decide on the distribution of a dividend of 0.70 euros per share. Taking into account the 0.30-euro interim dividend paid on December 15, 2021, the balance of the dividend to be proposed to the Shareholders' Meeting will be 0.40 euros per share, to be paid in cash on June 9, 2022. The ex-dividend date will be June 7, 2022. For fiscal year 2022, the 2023 Shareholders' Meeting will be asked to approve a maintained dividend of 0.70 euros per share. An interim dividend of 0.30 euros per share will be paid in December 2022.
What’s on, Shareholders’ Club
Your next key shareholder dates
February 17, 2022
Publication of annual results 2021
April 26,
2022
Publication of the first quarter 2022 results
May 19,
2022
Shareholders' Meeting at the Salle Pleyel in Paris
July 28,
2022
Publication of results for the first half of 2022
Shareholders’ Club meetings
At Orange we keep a close relationship with our Shareholders’ Club members through a series of in-person and online events to help you keep in touch with the Group.
To find out more about joining the Club along with our latest news, please visit the dedicated site.
Orange Shareholders’ Club highlights: reviews from our members!
« We discovered a little-known place and activity. The base director’s presentation took us into a magical world where we learned about the work carried out to lay and maintain submarine cables. »
Etienne H. – Orange Marine’s Mediterranean Base in La Seyne-sur-Mer, Nov 21.
« A very friendly welcome and informative behind-the-scenes guided tour of this iconic stadium. Thank you once again for this invitation and great organization. »
Bernard P. – Orange Vélodrome, Marseille, Oct 21
« Your warm (and delicious) welcome as well as the clear explanations from your colleagues meant I had an excellent afternoon, and I’m even more convinced Orange is an excellent investment. »
Ariane P. – Orange Business Services Customer Innovation Center, Paris La Défense, Nov 21
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