Orange reported a very modest increase in turnover of +0.1% to €21.29 billion in the first half of 2022, but a decline of 0.4% in the second quarter due to an “underlying effect of fiber network co-financing received in the second quarter 2021. “, – justifies the group in a press release.
The telecommunications group posted modest EbitdaaL (+0.7%) growth to €5.93 billion, driven in part by Africa, the Middle East and Europe, despite a deteriorating business unit.
“Preparing for the Future with Confidence”
The consolidated group’s net profit for the half year amounted to 1.47 billion euros, up 4.07 billion euros compared to a net loss of 2.61 billion euros a year earlier.
“In an environment still marked by the health crisis, geopolitical uncertainty and the effects of inflation, Orange once again demonstrated its resilience in the first half of 2022, both in terms of its commercial dynamics and in terms of key financial indicators,” said Christelle Heidemann. CEO of the Orange group after the publication of the results.
“These strong results allow us to confirm our plans for the current year, which is a stepping stone towards meeting our commitments for 2023. It also allows us to prepare for the future with confidence and responsibility as we develop our next plan. will be presented in early 2023,” she continued. Thus, Orange confirms its financial targets for 2022 with an increase in EBITDAaL of 2.5-3%.
An “extremely competitive” telecommunications market, according to Christel Heidemann.
The drop in turnover for the just-concluded quarter is more pronounced in France (-2.7%) than in Europe (-0.9%), even as Orange achieves solid growth of 1.4% in retail services.” , says the group. Figures for Europe are rising thanks to growth in Poland (+3.4%) and Belgium (+4%).
In Spain, the operator recorded a drop of 4% in six months. A recent deal with MasMovil should turn things around in 2023, the French operator hopes.
In addition, the business segment decreased by 1.1%. Orange emphasizes that “the structural decline in historical voice and data activity is greater than the growth drivers of IT and integration services.”
Rebuilding the business sector is a ‘priority’
Christel Heidemann notes that in France, “fiber and 5G continue to whet our customers’ appetites and help stabilize our financial performance.”
And add that “these solid performance in the consumer market in Europe and Africa/Middle East offset the difficulties that fall on our business segment.” For the group, “recovery in this sector is a priority,” the general manager says.
“In recent quarters, we have been hit by an extremely competitive telecommunications market and a challenging economic environment. We can be happy to see an increase in customer satisfaction and a decrease in churn. Our consumer market revenues as well as our EBITDAaL are improving and we are on track to resume growth in 2023. reason to believe in the growth potential in Spain,” says Christel Heidemann.