Third quarter 2023 financial results

Focus on the Lead the future strategic plan, prioritize value and operational efficiency.

3Q results fully in line with the confirmed 2023 financial targets. 

Commenting on the publication of these results, Christel Heydemann, Chief Executive Officer of the Orange Group, said:

"In an unstable global environment, we have once again demonstrated our ability to execute our "Lead the future" strategic plan, giving us confidence that we are on track to achieve our ambitions for 2025. 

In France and Europe, the quarterly results in retail services continue to demonstrate a positive momentum that is driven by our value strategy, helped by the price increases we are implementing with the utmost care. In Spain, our discussions with regard to the merger with MasMovil are continuing with a view to securing European Commission approval by the end of this year.

Africa and the Middle East continue their excellent performance driving the Group’s growth, with revenues increasing by over 12% and ten countries recording double-digit growth.

In the Enterprise market, rapid growth in IT&IS revenues of more than 9% is offsetting the decline in our historical activities, while Orange Business continues its transformation. 

Finally, we are maintaining our drive to improve efficiency through the execution of our cost-cutting plan, accelerating EBITDAaL growth in the third quarter (+1.4% vs. +1% in the second quarter).

On the strength of these results, for which I would like to warmly thank all the Group's teams, we are confirming our objectives for 2023. 

Together, we continue to build and strengthen the Orange Group, ensuring its competitiveness with confidence and determination."

• Revenues for the third quarter of 2023 were 10,999 million euros, an increase of 1.8%, or 194 million euros, year on year  (compared with +2.6% in 2Q and +2.0% in H1). Revenue growth in the quarter was driven by retail services , which grew by 3.8%, or 304 million euros (+4.3% in 2Q and +3.6% in H1). This increase, in absolute terms, was more than double the decline in revenues from wholesale services, which continued to decrease, falling 6.7% or -123 million euros (-4.1% in 2Q and -5.9% in H1).
• In France, continued growth in retail services excluding PSTN (+3.4%) and in mobile equipment sales (+3.0%) offset the anticipated decline in wholesale services revenues. Revenues thus continued their improvement, falling -0.5% (-1.3% in 2Q and -1.8% in 1Q).
• In Europe, revenues from retail services continued to grow, up 2.3%, thanks to the value strategy and in spite of an unfavorable baseline effect related to progressive price increases during 2022. 
• Africa & Middle East continued to post very strong growth of 12.2%, driven by double-digit increases in its four growth engines (+17.8% for mobile data, +17.0% for fixed broadband, +28.2% for Orange Money and +20.3% for B2B across the board).
• Growth in IT & Integration services revenues in the Enterprise sector accelerated to 9.3% (+8.8% in 2Q and +7.1% in H1) and more than offset the structural decline in the Voice and Data legacy businesses. Enterprise revenues increased 0.6%, reflecting stable mobile revenues, with the growth in services being offset by the decrease in equipment sales.
• In terms of commercial performance , the Group maintained its leadership position in convergence, with 11.9 million convergent customers Group-wide (+1.0%), as well as its commercial momentum in mobile contracts and very high-speed fixed broadband accesses. Mobile services had 250.9 million accesses (+4.2%), including 100.8 million contracts (+9.0%). Fixed services totaled 44.8 million accesses (-2.9%), including 16.0 million very high-speed broadband accesses which continued to grow strongly (+12.8%). Fixed narrowband accesses continued their structural decline (-14.3%).
• Growth in EBITDAaL accelerated to 1.4% in the third quarter of 2023 (+1.0% in 2Q and +0.5% in 1Q), in line with the target for the year end. Despite the inflationary backdrop, the operational efficiency program continued on its trajectory towards achieving its target of 600 million euros by 2025, on a defined cost base of 11.8 billion euros at the end of 2022. 
• eCAPEX was 1,597 million euros in the third quarter of 2023, a year-on-year reduction of 7.0%, in line with the objective of a substantial reduction for the year as a whole. At 30 September 2023, Orange had 70.0 million households connectable to FTTH worldwide (up 11.9% year on year) and an FTTH customer base of 15.0 million (+13.5%).

The Group reconfirms its financial targets, in particular those for 2023 , as presented at the Capital Market Day on 16 February: 

• Slight growth in EBITDAaL
• Significant reduction in eCAPEX
• Organic cash-flow from telecom activities of at least 3.5 billion euros
• Net debt/EBITDAaL ratio for telecom activities unchanged at around 2x in the medium term

Orange has also confirmed an interim dividend cash payment for 2023 of 0.30 euros per share, which will take place on 6 December 2023. A dividend of 0.72 euros per share for 2023 will be proposed to the Annual Shareholders’ Meeting in 2024.

Unless otherwise stated, percentage changes are on a year-on-year basis, calculated against the third quarter of 2022 and on a comparable basis.
Services invoiced to customers (B2C and B2B). See definition in the attached glossary.
Changes are presented on a comparable basis.
These targets are on a comparable basis and do not take into account mergers and acquisitions not yet finalized.