Published on 26 October 2021

Third quarter 2021 financial information at 30 September 2021

Orange delivers a sustained commercial performance and confirms all of its 2021 objectives

Q3 2021

  • Continued good commercial performances:
    -    11.3 million convergent customers
    -    10.8 million Fiber (FTTH) customers out of 53.8 million connectable households. The FTTH client base rose 25.5% year on year, driven in particular by France and Poland
     
  •  Revenues down slightly (-0.4%)¹ in Q3 2021. 
  • They rose 1.3% excluding co-financing:
    -    strong performance in retail services² with an acceleration in revenue growth from convergence (+2.9%), mobile (+5.6%) and fixed broadband (+5.2%)
    -    France recorded a 4.1% decline, but was virtually stable excluding co-financing thanks to retail services where growth accelerated (+3.7% excluding PSTN)
    -    Europe excluding Spain rose 2.0% with retail services growth accelerating (+5.7%). Spain was down 4.4% despite a slight pick-up in retail services 
    -    Africa & Middle East: another very strong performance at +12.0%
    -    Enterprise declined (-1.4%) due to a decrease in fixed services (-5.2%) which was not offset by the growth in IT & Integration services (+2.1%) and mobile services (+3.5%)
    -    International Carriers & Shared Services grew 10.8%
  • EBITDAaL decline was limited to 0.7%, impacted by the lower level of co-financing received in France. EBITDAaL grew 4.5% excluding co-financing.
     
  • eCAPEX was down slightly: -1.0% in Q3 2021 after a strong increase in the first half due to investments in Fiber and in Africa & Middle East, in line with the objectives for 2021.
     

The Group is maintaining its financial objectives for 2021after allocation of the tax refund³ :

  •     stable but negative EBITDAaL, 
  •     eCAPEX of 7.6 to 7.7 billion euros,
  •     organic cash flow from telecoms activities of over 2.2 billion euros
  •     net debt/EBITDAaL ratio for telecom activities remaining at around 2x in the medium term.
     

Dividend

Orange will make an interim dividend payment for 2021 of 0.30 euros in cash on December 15, 20214. In respect of the 2021 financial year, a dividend of 0.70 euros per share will be proposed to the 2022 Shareholders’ Meeting. 

Commenting on the publication of these results, Stéphane Richard, Chairman and Chief Executive Officer of the Orange group, said:
"Orange’s sustained commercial performance in the third quarter, marked by solid momentum in retail services across all the countries where we are present, allows us to confirm all of our financial commitments. In an economy still showing the effects of the health crisis, including the acceleration of the digital transformation, our customers' appetite for very high-speed access is evidenced in their take up of fiber and 5G, and of our convergent offers.

In France, the good momentum continued with growth of 1.2 points in retail services. Orange fiber now has 5.6 million customers in France, an increase of 36% year on year. However, as yet our accounts reflect little of this promising trend owing to the decline in co-financing received from other operators on our fiber network in 2021 compared to 2020.

In Spain, while the market remains very fragmented and impacted by the health crisis, the revenue trend in retail services is improving quarter by quarter, further supported by positive commercial results, with customer gains across all segments. The results are therefore encouraging and while much remains to be done, we are fully engaged in the execution of our turnaround strategy.

The other European countries continue to make a positive contribution to the Group’s results, with a 5.7% growth in retail services, due both to our convergence strategy and the enthusiasm seen for fiber, where Orange is the stand-out European leader. The acquisition of TKR in Romania will also strengthen our leadership position in convergence, providing us with a quality fixed network with which to pursue our strategy.

In Africa, the Group's main growth engine, our revenues rose strongly, up 12%, with all countries contributing, driven in particular by mobile data, which is expanding fast. Orange now has more than 40 million 4G customers, a 33.6% increase compared to last year."

Disclaimer
This press release contains forward-looking statements about Orange’s financial situation, results of operations and strategy. Although we believe these statements are based on reasonable assumptions, they are subject to numerous risks and uncertainties, including matters not yet known to us or not currently considered material by us, and there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved. More detailed information on the potential risks that could affect our financial results is included in the Universal Registration Document filed on 17 March 2021 with the French Financial Markets Authority (AMF) and in the annual report (Form 20-F) filed on 18 March 2021 with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made. Other than as required by law, Orange does not undertake any obligation to update them in light of new information or future developments.

 

¹Unless otherwise stated, the changes presented in this press release are on a comparable basis.
²Includes B2C and B2B services. See the definition in Appendix 5: glossary.
³These targets take into account the allocation of the 2.2 billion-euro tax refund received at the end of 2020 after the French Council of State ruled in the Group’s favor in a long-running tax dispute, which is intended to generate long-term added value for the Group but will have an impact on objectives in the short term.
4The ex-dividend date is set for December 13.

Fyna SOW
26/10/2021 07:30 CEST