Orange has returned to growth in France for the first time in almost a decade as sales made further headway in 2017.

Sales across the company were up 1.4 percent to €10.20 billion on a like for like basis, up from 0.8 percent in its first quarter.

Spain was the standout revenue growth performer for the three months to 30 June, with convergence hiking sales up 8.8 percent to €1.34 billion.

Close behind were its Central European countries, which saw sales up 7.1 percent to €434 million. revenues were up 11 percent in Romania, 4.4 percent in Moldova and flat in Slovakia.

There was less cheery news for Poland, Orange's third biggest market in Europe, which saw reported sales down 2.2 percent to €673 million. The operator cited high equipment revenues during the comparable period in 2016 as an explanation and noted increases in fixed and mobile service revenue.

While France failed to match the wider European revenue growth of 4.9 percent, Orange would have been cheered by a return to growth in its home market, its first since 2009.

Sales nudged up 0.5 percent to €4.45 billion on a compatable basis, which Orange said was down to continued strong performance in fixed broadband, up five percent in Q2 after a 5.5 percent increase in Q1, as well as an improvement in mobile service revenue and reduced roaming impact.

The operator hailed a return to solid growth in Africa & the Middle East, which saw sales up 2.7 percent to €1.25 billion, driven primarily by its businesses in Côte d'Ivoire, Morocco and Senegal.

While there was an improvement in its enterprise arm, thanks to security and cloud, revenues were down 1.3 percent to €1.82 billion, compared to a drop of two percent in Q1.

Orange Bank, which the operator announced last month it was delaying the launch until the second half of this year, also netted an operating loss of €14 million. Details on the new venture were scant.

Its TV services had 8.7 million customers at the end of the quarter, up seven percent year on year.

[Read more: HBO, Orange set to co-produce content in France]

The strong European performance led to adjusted EBITDA increasing 2.4 percent on a like for like basis to €3.38 billion.

Across the Group, customer numbers increased 3.6 percent to 207.4 million, with a 7.8 percent growth in contract customers put down to its performance in France and wider Europe.

Orange boasted 19.1 million fixed customers at the end of its second quarter, up 5.4 percent on 2016. Again, France was a strong performer, as were Spain and Poland.

Across the half year, like for like sales were up 1.1 percent to €20.28 billion and adjusted EBITDA up 2.2 percent to €5.98 billion.

Stéphane Richard, Chairman and CEO of the Orange Group, said: “The acceleration seen in the Group's growth was confirmed by the first-half results, and in particular the performance in the second quarter, driven by France, Europe and Africa and the Middle East.

He added: "The strategy that we have been following for several quarters, which centred on giving customers an unbeatable experience through convergence around the home and a quality network, is now yielding results.

"We have converted more than half of our revenue increase into EBITDA, demonstrating a good balance of growth and profitability. This has enabled us to reaffirm our objective of delivering growth in adjusted EBITDA for the full year 2017."

More News

Iliad enters content game in France, finally launches Italian mobile business Iliad enters content game in France, finally launches Italian mobile business Iliad has acquired football rights in France and launched its opco in Italy as it looks to reboot after a disappointing set of financial results. More detail
Three UK appoints new CCO, CFO Three UK appoints new CCO, CFO The departure of Three UK's Chief Commercial Officer after just 18 months in the job has triggered a shake-up of the mobile operator's top team. More detail
TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk has agreed to sell 80,000 business customers to rival Daisy Group in a £175 million deal. More detail
A1 Telekom Austria Group rebrand reaches Bulgaria A1 Telekom Austria Group rebrand reaches Bulgaria Bulgaria is the third A1 Telekom Austria Group opco to get rebranded as the telco looks to market itself as a provider of "advanced" IT, IoT, cloud and content services. More detail
Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services has expanded its work with Dobroflot by developing a customised IoT solution for the Russian fishing company. More detail
    

 

European Communications is now
Mobile Europe and European Communications

  

From June 2018, European Communications magazine 
has merged with its sister title Mobile Europe, into 
Mobile Europe and European Communications.

No more new content is being published on this site - 

for the latest news and features, please go to:
www.mobileeurope.co.uk 

 

@eurocomms