Paris, 21 February 2018
2017 earnings
Accelerated growth
in revenues and adjusted EBITDA and return to
growth in Operating Cash Flow*
|
|
|
|
|
|
|
|
|
|
|
2017 |
2016 |
2016 |
|
change |
|
change |
In millions of euros |
|
comparable basis |
historical basis |
|
comparable basis |
|
historical basis |
|
|
|
|
|
|
|
|
|
|
Revenues |
41,096 |
40,593 |
40,918 |
|
1.2 % |
|
0.4 % |
Adjusted EBITDA |
12,819 |
12,538 |
12,682 |
|
2.2 % |
|
1.1 % |
Operating Income |
4,917 |
|
4,077 |
|
|
|
20.6 % |
Consolidated net income of continuing operations |
2,114 |
|
1,010 |
|
|
|
|
CAPEX (excluding licences) |
7,209 |
6,974 |
6,971 |
|
3.4 % |
|
3.4 % |
Operating Cash Flow |
5,610 |
5,564 |
5,711 |
|
0.8 % |
|
(1.8)% |
|
|
|
|
|
|
|
|
|
|
Orange's revenues and adjusted EBITDA
grew for the second consecutive year in 2017, while Operating Cash
Flow grew for the first time since 2009*.
-
In France, revenue grew for the first time since
2009, up 0.6%;
-
In Spain, record growth rates achieved, with
revenues up 7.1% and adjusted EBITDA up 17.0%*;
-
In Africa & the Middle East, revenue growth
accelerated to 3.0%*.
This momentum was underpinned by an
excellent operational performance in the fourth quarter.
-
A record quarter in fibre with 164,000 net sales
in France and 175,000 in Spain;
-
Orange France recorded 212,000 net sales of
mobile contracts[1] in the
fourth quarter; approximately double the fourth quarter of 2016,
continuing the excellent sales trend of the third quarter;
-
Steady growth of retail convergence offers in
France and the Europe segment with 10.3 million customers at the
end of 2017, up 11.1% on the year;
-
Successful launch of Orange Bank with 55,000
accounts opened by 2017 year-end.
2017 CAPEX of 7.2 billion euros
supported our strategy of differentiation through investment in our
network quality and customer experience. At December 31, 2017, 26.6
million homes were potentially connectable to high-speed
broadband[2], and 4G was
rolled out in three new countries, bringing the total to 21
countries.
With confidence in the momentum and financial
strength across the Group, the Board of Directors confirms the
payment of a 0.65 euro dividend for fiscal year 2017[3] and will
propose at the 2019 Annual General Meeting of Shareholders a
dividend payment of 0.70 euro per share for the 2018 fiscal year.
The 5 euro cents increase in dividend will be reflected in the
interim dividend (0.30euro per share), which is payable in December
2018.
Commenting on the 2017 earnings report, Stéphane Richard, Chairman
and CEO of Orange Group, said:
"2017 was a
remarkable year for Orange in more ways than one. The Group
delivered an excellent commercial performance, driven by very
high-speed broadband. We now have 4.7 million fibre customers and
46 million 4G customers across the Group. This performance has
translated into solid financial results. Thanks to a strong fourth
quarter, revenues in France returned to growth for the first time
since 2009. Spain maintained its impressive growth, while our
Africa & Middle East segment recovered strong momentum, with 3%
revenue growth year on year.
Buoyed by these
positive results, the Group's operating cash flow grew for the
first time since 2009.
2017 also saw the
launch of Orange Bank, which has succeeded in attracting close to
100,000 customers in less than four months. Our expertise in
financial services is now recognised and the success of Orange
Money, with its 37 million customers, shows no signs of
slowing.
This strong
performance can be attributed to the significant contribution of
the women and men of Orange and I would like to warmly thank them
for their commitment.
Our strategy, based
on sustainable value creation, is delivering. This has enabled us
to reaffirm our objectives for 2018 and to recommend an increase in
the 2018 dividend for our shareholders."
2018 and mid-term
outlook[4]
Orange re-affirms the 2018 objectives announced at its Investor Day
on December 7:
-
growth in adjusted EBITDA greater than that
achieved in 2017 on a comparable basis;
-
higher CAPEX, peaking at 7.4 billion euros in
2018;
-
growth in Operating Cash Flow greater than in
2017 on a comparable basis;
-
net debt to adjusted EBITDA for telecom
activities to be held at about 2x in the medium term, to maintain
Orange's financial strength and investment capacity.
For 2019 and 2020, growth in adjusted
EBITDA, decrease in CAPEX and growth in Operating Cash Flow.
Key figures
· Full year
data
|
|
|
|
|
|
|
|
|
|
|
2017 |
2016 |
2016 |
|
change |
|
change |
In millions of euros |
|
comparable basis |
historical basis |
|
comparable basis |
|
historical basis |
|
|
|
|
|
|
|
|
|
|
Revenues |
41,096 |
40,593 |
40,918 |
|
1.2 % |
|
0.4 % |
Of which : |
|
|
|
|
|
|
|
|
France |
18,052 |
17,945 |
17,945 |
|
0.6 % |
|
0.6 % |
|
Europe |
11,026 |
10,614 |
10,541 |
|
3.9 % |
|
4.6 % |
|
|
Spain |
5,371 |
5,014 |
5,014 |
|
7.1 % |
|
7.1 % |
|
|
Poland |
2,674 |
2,711 |
2,644 |
|
(1.4)% |
|
1.1 % |
|
|
Belgium & Luxembourg |
1,251 |
1,242 |
1,242 |
|
0.8 % |
|
0.8 % |
|
|
Central European countries |
1,749 |
1,654 |
1,648 |
|
5.7 % |
|
6.2 % |
|
|
Intra-Europe eliminations |
(19) |
(7) |
(7) |
|
- |
|
- |
|
Africa & Middle
East |
5,030 |
4,881 |
5,245 |
|
3.0 % |
|
(4.1)% |
|
Enterprise |
7,252 |
7,323 |
7,353 |
|
(1.0)% |
|
(1.4)% |
|
International Carriers
& Shared Services |
1,651 |
1,806 |
1,812 |
|
(8.6)% |
|
(8.9)% |
|
Intra-Group eliminations |
(1,915) |
(1,976) |
(1,978) |
|
- |
|
- |
Adjusted EBITDA* |
12,819 |
12,538 |
12,682 |
|
2.2 % |
|
1.1 % |
of which telecom
activities |
12,880 |
12,573 |
12,694 |
|
2.4 % |
|
1.5 % |
|
As % of revenues |
31.3 % |
31.0 % |
31.0 % |
|
0.4 pt |
|
0.3 pt |
|
France |
6,901 |
6,808 |
6,806 |
|
1.4 % |
|
1.4 % |
|
Europe |
3,138 |
2,967 |
2,944 |
|
5.8 % |
|
6.6 % |
|
|
Spain |
1,582 |
1,351 |
1,349 |
|
17.0 % |
|
17.2 % |
|
|
Poland |
707 |
743 |
725 |
|
(4.8)% |
|
(2.4)% |
|
|
Belgium & Luxembourg |
302 |
316 |
316 |
|
(4.3)% |
|
(4.3)% |
|
|
Central
European countries |
547 |
557 |
554 |
|
(1.7)% |
|
(1.2)% |
|
Africa & Middle
East |
1,612 |
1,506 |
1,658 |
|
7.0 % |
|
(2.8)% |
|
Enterprise |
1,307 |
1,337 |
1,342 |
|
(2.3)% |
|
(2.7)% |
|
International Carriers & Shared Services |
(78) |
(45) |
(56) |
|
(81.8)% |
|
(39.5)% |
of which
Orange Bank |
(62) |
(35) |
(12) |
|
- |
|
- |
Operating Income |
4,917 |
|
4,077 |
|
|
|
20.6% |
of which
telecom activities |
5,009 |
|
3,992 |
|
|
|
25.5% |
of which
Orange Bank |
(93) |
|
85 |
|
|
|
- |
Consolidated net income of continuing operations |
2,114 |
|
1,010 |
|
|
|
|
Consolidated net income of discontinued operations (EE) |
29 |
|
2,253 |
|
|
|
|
Consolidated net income |
2,143 |
|
3,263 |
|
|
|
|
Net income
attributable to equity owners of the Group |
1,906 |
|
2,935 |
|
|
|
|
CAPEX (excluding licences) |
7,209 |
6,974 |
6,971 |
|
3.4 % |
|
3.4 % |
of which telecom
activities |
7,148 |
6,959 |
6,956 |
|
2.7 % |
|
2.8 % |
|
As % of revenues |
17.4 % |
17.1 % |
17.0 % |
|
0.3 pt |
|
0.4 pt |
of which
Orange Bank |
61 |
15 |
15 |
|
|
|
|
Operating Cash Flow |
5,610 |
5,564 |
5,711 |
|
0.8 % |
|
(1.8)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017 |
December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
financial debt |
23,843 |
24,444 |
|
|
|
|
|
Ratio of
"net financial debt / Adjusted EBITDA of telecom activities" |
1.85x |
1.93x |
|
|
|
|
|
* EBITDA adjustments are described in
appendix 6.
· Quarterly
data
|
|
|
|
|
|
|
|
|
|
|
4rth
quarter |
4rth
quarter |
4rth
quarter |
|
change comparable |
|
change
historical |
|
|
|
2017 |
2016 |
2016 |
|
basis |
|
basis |
In millions of euros |
|
comparable basis |
historical basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
10,546 |
10,361 |
10,516 |
|
1.8 % |
|
0.3 % |
Of which: |
|
|
|
|
|
|
|
|
France |
4,644 |
4,566 |
4,566 |
|
1.7 % |
|
1.7 % |
|
Europe |
2,832 |
2,767 |
2,742 |
|
2.3 % |
|
3.3 % |
|
|
Spain |
1,373 |
1,307 |
1,307 |
|
5.0 % |
|
5.0 % |
|
|
Poland |
688 |
704 |
681 |
|
(2.4)% |
|
0.9 % |
|
|
Belgium & Luxembourg |
318 |
322 |
322 |
|
(1.3)% |
|
(1.3)% |
|
|
Central European countries |
459 |
435 |
433 |
|
5.6 % |
|
6.1 % |
|
|
Intra-Europe eliminations |
(5) |
(1) |
(1) |
|
- |
|
- |
|
Africa & Middle
East |
1,274 |
1,205 |
1,359 |
|
5.7 % |
|
(6.2)% |
|
Enterprise |
1,859 |
1,860 |
1,887 |
|
(0.1)% |
|
(1.5)% |
|
International Carriers
& Shared Services |
417 |
449 |
451 |
|
(7.2)% |
|
(7.7)% |
|
Intra-Group eliminations |
(479) |
(486) |
(488) |
|
- |
|
- |
Adjusted EBITDA* |
3,220 |
3,141 |
3,172 |
|
2.5 % |
|
1.5 % |
of which telecom
activities |
3,237 |
3,153 |
3,184 |
|
2.7 % |
|
1.7 % |
|
As % of revenues |
30.7 % |
30.4 % |
30.3 % |
|
0.3 pt |
|
0.4 pt |
of which
Orange Bank |
(19) |
(12) |
(12) |
|
- |
|
- |
CAPEX (excluding licenses) |
2,336 |
2,234 |
2,238 |
|
4.5 % |
|
4.4 % |
of which telecom
activities |
2,312 |
2,220 |
2,224 |
|
4.2 % |
|
4.0 % |
|
As % of revenues |
21.9 % |
21.4 % |
21.1 % |
|
0.5 pt |
|
0.8 pt |
of which
Orange Bank |
24 |
14 |
14 |
|
- |
|
- |
Operating Cash Flow |
884 |
907 |
934 |
|
(2.5)% |
|
(5.3)% |
* EBITDA adjustments are described in
appendix 6.
The Orange S.A. Board of Directors met on February
20, 2018 and examined the financial statements of the Group.
The Group's statutory auditors audited those
financial statements, and the audit reports relative to their
certification are in the process of being issued.
More detailed information is available on the
Orange website:
www.orange.com
Comments on key Group
figures
Revenues
Orange Group revenues were 41.096 billion euros in
2017, an increase of 1.2% (+503 million euros) on a comparable
basis[5], twice that
achieved in 2016 (+0.6%, or 249 million euros). In the fourth
quarter of 2017, Group revenues were up 1.8% on a comparable basis,
having risen 0.9% in the third quarter and 1.1% in the first half.
Faster growth in the fourth quarter was primarily due to the
inclusion of digital media apps in France from October 5, as well
as the recovery in the Africa & Middle East segment.
The fourth quarter 2017 revenue trends by region were as follows
(on a comparable basis):
In France, revenue increased to 1.7% in the fourth quarter,
following growth of 0.2% in the third quarter and 0.5% in the
second quarter. Fixed-line broadband and mobile services saw
improved growth, thanks in part to the inclusion of digital media
apps.
In the Europe segment, revenues rose 2.3% in the fourth quarter of
2017:
-
in Spain, mobile services grew 6.1% in the
fourth quarter, reflecting additional services and 4G, and
fixed-line broadband grew 5.4% driven by fibre and TV
services;
-
in Poland, revenues fell 2.4% in the fourth
quarter. Mobile services remained down while growth in fixed-line
broadband accelerated, driven by convergence and fibre;
-
in Belgium & Luxembourg, revenues in the
fourth quarter fell 1.3% with a decline in MVNOs and mobile
equipment sales. Growth of mobile services excluding MVNOs and of
fixed-line broadband improved, driven by consumer convergence
offers;
-
in Central European countries revenues were up
5.6% in the fourth quarter, driven by growth in Romania (+7.7%) and
Slovakia (+2.5%).
In the Africa & Middle East segment, revenues
rebounded 5.7% in the fourth quarter of 2017, driven by accelerated
growth in Morocco and Egypt, and with growth resuming in the
Democratic Republic of Congo. Growth in 2017 was 3.0%, up from 2.6%
in 2016;
In the Enterprise segment, the revenue trend has been gradually
improving (-0.1% in the fourth quarter compared to -0.5% in the
third quarter and -1.6% in the first half). Growth in Cyberdefence
and the Cloud remained strong (+17% and +15% respectively).
Customer base
growth
In France[6], fibre set
a new annual record with 546,000 net sales in 2017 (including
164,000 in the fourth quarter) and reaching 2.0 million customers
at December 31, 2017. The momentum in mobile contract
sales[7] was also
very strong with 826,000 net sales in 2017 (including 236,000 in
the fourth quarter), driven by Open offers and Sosh.
In Spain, the sales trend remained strong in the fourth quarter,
both in fibre with 175,000 net sales, and in mobile
contracts7 with 61,000
net sales in a highly competitive environment.
In Poland, fixed-line broadband had 61,000 net sales in the fourth
quarter (driven by fixed 4G and fibre) and convergent offers
represented 50% of the consumer customer base at the close of 2017.
There were 64,000 mobile contracts net sales in the fourth
quarter.
In Belgium, mobile contracts[8] saw record
net sales in the fourth quarter (28,000 net sales), the highest
level since the fourth quarter of 2011. The contract customer
base8 of the
Belgium & Luxembourg segment (2.4 million customers at the end
of 2017) rose 3.3% year on year.
In the Africa & Middle East segment, the mobile customer base
reached 130.5 million at December 31, 2017, an increase of 8.2% (up
9.9 million customers) year on year. Orange Money had 36.9 million
customers and an active customer base of 12.1 million at December
31, 2017.
Group-wide, the number of mobile customers was 211.4 million at
December 31, 2017, up 5.0% year on year (+10.1 million net sales)
on a comparable basis. Customer contracts (74.6 million) grew 7.2%
year on year, while 4G reached 46.2 million customers.
Fixed-line broadband customers (19.5 million at December 31, 2017)
grew 4.7% year on year; fibre, with 4.7 million customers, grew
43%.
Consumer convergent offers had 10.3 million customers (up 11.1%),
of which 6.0 million were in France, 3.1 million in Spain and 1.0
million in Poland.
TV services increased 6.9% year on year to 9.1 million customers as
of December 31, 2017.
Orange Bank had 55,000 accounts open at December 31, 2017, which is
ahead of the Group's initial
forecasts.
Adjusted EBITDA
The adjusted EBITDA of the Group was 12.819
billion euros in 2017, an increase of 2.2% on a comparable basis.
Adjusted EBITDA from telecom activities was 12.880 billion euros,
an increase of 2.4% on a comparable basis (+306 million euros),
despite the impact of the new roaming regulation in Europe. This
increase is primarily due to a good performance in Spain, France
and the Africa & Middle East segment.
Improvements to the cost structure provided the necessary
flexibility to expand content offers and maintain commercial focus,
particularly in the area of mobile equipment sales. At the same
time, labour costs in the telecom activities declined 1.9% in 2017,
reflecting the decrease in the average number of full-time
equivalent employees during the year (-2.8%). Service fees and
inter-operator costs as well as advertising and promotion costs
were also down for the year.
In the fourth quarter of 2017, the
adjusted EBITDA from telecom activities was 3.237 billion euros, an
increase of 2.7% (+84 million euros) on a comparable basis. That
increase was primarily due to revenue growth (+185 million euros),
partially offset by an increase in operating costs (-102 million
euros) related mainly to content costs and commercial expenses
(purchases of equipment intended for customers). Labour costs
increased 1.2% in the fourth quarter, related to an adjustment of
the variable portion of compensation and profit-sharing, and to the
share award plan for employees apportioned to 2017 (Orange Vision
2020).
Operating
income
Orange Group operating income stood at 4.917
billion euros in 2017, an increase of 840 million euros on a
historical basis compared with 2016, due to:
-
a 769 million-euro decrease in the impairment of
goodwill and fixed assets, with 210 million euros of impairment in
2017 (Democratic Republic of Congo, Niger and Luxembourg) compared
with 979 million euros in 2016;
-
an EBITDA increase of 283 million euros;
-
and a rise in income from associates and joint
ventures amounting to 52 million euros.
These positive items were partially offset by:
-
the impact of the acquisition of 65% of Groupama
Bank (subsequently Orange Bank) for 124 million euros, with a loss
of 27 million euros in 2017 versus a gain of 97 million euros in
2016;
-
and the rise in depreciation and amortisation to
118 million euros.
Net income
Net income from continuing operations (2.114
billion in 2017) showed an increase of 1.104 billion euros over
2016 due to:
-
an 840 million-euro increase in operating
income;
-
an improvement in net finance costs of 382
million euros, including a reduced impairment of the retained BT
stock; a decrease in the cost of gross financial debt; and an
increase in income from foreign exchange;
-
partially offset by a 118 million euro increase
in corporate tax.
Net income from discontinued operations fell 2.224
billion euros due to the disposal of EE in 2016[9],
which resulted in a positive income impact of 2.253 billion
euros.
In total, Orange Group's consolidated net income was 2.143 billion
euros in 2017, down 1.120 billion euros from 2016.
CAPEX
CAPEX for the Group was 7.209 billion euros in
2017, an increase of 3.4% compared to the previous
year.
Growth in investment in very high speed broadband continued to
increase, with a third of investment growth attributable to fibre
mainly in France, Spain and Poland. In France, the growth in fibre
investment remained strong and benefits in part from greater
co-financing from other operators. At December 31, 2017, 26.6
million households had connectivity to very high-speed
broadband[10] (an
increase of 6.3 million or 31% year on year), including 12.0
million in Spain, 9.1 million in France, 2.5 million in Poland and
2.3 million in Romania (following the mutual network sharing
agreement with Telekom Romania).
The increase in capital spending on 4G and 4G+ mobile services
represented around two thirds of investment growth in very
high-speed broadband. This was largely due to accelerated rollouts
in Africa & the Middle East, France and Spain. At December 31,
2017, 4G coverage as a percentage of the population was 95.9% in
France, 95.7% in Spain, 99.8% in Poland, 99.7% in Belgium, 93.2% in
Romania, 90% in Slovakia and 98% in Moldova. In France and Spain,
investments focused on improving service quality in public spaces
and on public transport.
The increased investment in information systems and services
platforms is attributable to the launch of Orange Bank
services.
Investments in customer equipment increased slightly: the expansion
of convergent offers in Belgium and Spain was offset by optimising
box costs in France.
The store modernisation program continues: at the end of 2017, the
Group had 327 stores based on the new Smart Store concept,
including 123 in France, 170 in the other European countries and 34
in Africa & the Middle East.
Changes in asset
portfolio
At December 31, 2016, Orange had a 4% stake in the
BT Group, following the sale of its investment in EE in January
2016. As part of the sale agreement, Orange agreed to hold onto its
shares for a one year period. In June 2017, Orange chose to further
reduce its exposure to BT by selling 133 million BT shares (or
1.33% of BT equity, for 433 million euros net of fees at June 22,
2017), and by issuing bonds[11]
exchangeable into BT stock to the amount of 517 million pounds
sterling (585 million euros). At December 31, 2017, Orange retained
a 2.67% equity interest in BT Group.
In October 2017, Orange signed an agreement to purchase a majority
share in Business & Decision, a data and digital specialist in
the Business Intelligence and Customer Relationship Management
space. This transaction, due to be completed in the first half of
2018, is subject to the regulatory approval. If the transaction is
approved, Orange will issue a simplified tender offer to acquire
all the capital stock of Business & Decision. The acquisition
of 100% of the equity is valued at approximately 63 million
euros.
Net financial
debt
Orange Group's net financial debt was 23.843
billion euros at December 31, 2017, representing a reduction of 601
million euros compared to December 31, 2016. The strict discipline
observed in allocating resources made it possible both to support a
proactive investment strategy and to maintain the Board's
commitment to increase the dividend for 2017 by 5 euro
cents[12].
The ratio of "net financial debt to adjusted EBITDA from telecom
activities" was 1.85x at December 31, 2017, compared to 1.93x at
December 31, 2016, due primarily to growth in adjusted EBITDA from
telecom activities. This is in line with the Group's medium-term
objective of a net debt to adjusted EBITDA ratio for telecom
activities of around 2x.
Items related to the change in net financial debt and to the ratio
of net debt to adjusted EBITDA for telecom activities are presented
in appendix 4.
Dividend 2017
The Group confirms payment of a 0.65
euro per share dividend for 201712. An interim
dividend of 0.25 euros per share was paid on December 7, 2017 and
the remainder of 0.40 euros per share will be paid on June 7. The
ex-dividend date will be June 5, 2018 and the record date will be
June 6, 2018.
Review by operating
segment
France
|
2017 |
2016 |
2016 |
17/16 |
17/16 |
In
millions of euros |
|
comparable basis |
historical basis |
comparable basis |
historical basis |
|
|
|
|
|
|
Revenues |
18,052 |
17,945 |
17,945 |
0.6 % |
0.6 % |
Adjusted
EBITDA |
6,901 |
6,808 |
6,806 |
1.4 % |
1.4 % |
Adjusted EBITDA /
Revenues |
38.2 % |
37.9 % |
37.9 % |
|
0 |
Operating
Income |
3,392 |
- |
3,381 |
- |
0.3 % |
CAPEX |
3,451 |
3,431 |
3,421 |
0.6 % |
0.9 % |
CAPEX / Revenues |
19.1 % |
19.1 % |
19.1 % |
|
0 |
In France, revenues grew for the third consecutive quarter: +1.7%
in the fourth quarter of 2017 after rising 0.2% in the third
quarter and 0.5% in the second quarter. The fourth quarter of 2017
benefitted from the impact of digital media apps, available since
October 5, and the recovery in mobile equipment sales (+10.0% after
-0.8% in the third quarter).
Mobile services rose 2.5% in the fourth quarter of 2017 for the
first time since 2011. Excluding the impact of the digital media
apps, mobile services still recorded growth. The increase was
driven by the excellent sales performance throughout the year. The
increase in the contract customer base[13]
strengthened in the second half of the year, at +4.0% at the end of
2017. With 717,000 net contract sales13, 2017 had
the highest net sales since 2008; 70% of net customer sales were
made in the high end of the market. The number of customer
convergent SIM card offers was 9.2 million at December 31, 2017
(+11.7% year on year). At that date, 73% of customer contracts
included 4G (+11 percentage points year on year) and SIM-only
offers represented 73% of the customer contracts (+8 percentage
points year on year).
Fixed broadband services grew by 7.5% in the fourth quarter after
rising 4.8% in the third quarter. Excluding the impact of the
inclusion of digital media apps, growth is comparable to previous
quarters and was driven by the commercial success of FTTH (fibre to
the home) offers, which continue to penetrate the market at a
steady pace. The fixed broadband customer base (11.2 million at the
end of 2017) is up 3.1% year on year and includes 2.0 million FTTH
customers (+37.6% year on year). Fixed broadband ARPU was up 4.2%
in the fourth quarter. Excluding the impact of the inclusion of
digital media apps, ARPU growth is comparable to previous quarters.
Consumer convergent offers (6.0 million customers at December 31,
2017, a year on year increase of 8.5%) represented 59.3% of the
fixed broadband customer base (+2.7 percentage points in one year).
The continued decline of traditional telephony reached -10.9% in
the fourth quarter. Wholesale and other fixed services were down
0.7% in the fourth quarter compared to a strong fourth quarter in
2016. Throughout 2017, they grew 2.9%, driven by unbundling and
fibre.
In France, adjusted EBITDA
rose 1.4% in 2017, and the adjusted EBITDA margin (38.2%) improved
0.3 percentage points compared to 2016. The increase in revenues,
the decrease in labour expenses and the savings achieved under the
Explore2020 operational efficiency plan were partially offset by
the increase in content costs and other operating expenses related
to business development.
In France, CAPEX was up 0.6%
on a comparable basis. The growth of investments in very high-speed
broadband (FTTH and 4G) remained strong, offset by the decrease in
other investments. At December 31, 2017, 9.1 million households in
France had access to Orange's fibre network (+2.2 million
households year on year). At that date, 4G coverage reached 95.9%
of the population (+8.3 percentage points year on year) and 49% of
the 4G sites were equipped with 4G+.
Europe
|
|
|
2017 |
2016 |
2016 |
17/16 |
17/16 |
In
millions of euros |
|
comparable basis |
historical basis |
comparable basis |
historical basis |
|
|
|
|
|
|
Revenues |
11,026 |
10,614 |
10,541 |
3.9 % |
4.6 % |
Adjusted
EBITDA |
3,138 |
2,967 |
2,944 |
5.8 % |
6.6 % |
Adjusted EBITDA /
Revenues |
28.5 % |
27.9 % |
27.9 % |
|
0 |
Operating
Income |
909 |
- |
186 |
- |
390.3 % |
CAPEX |
2,012 |
1,972 |
1,960 |
2.1 % |
2.8 % |
CAPEX / Revenues |
18.3 % |
18.6 % |
18.6 % |
|
0 |
Revenues in the
Europe segment grew 2.3% in the fourth quarter of 2017 after rising
3.9% in the third quarter on a comparable basis.
Mobile services rose 1.1% in the fourth quarter of 2017 after
increasing 2.3% in the third quarter, on a comparable basis. The
slowdown in growth is linked to services provided to other
operators, including the decline of MVNOs in Belgium. Commercial
momentum continued to be high, with 346,000 net contract sales in
the fourth quarter. The contract customer base was 34.6 million at
December 31, 2017, an increase of 4.1% year on year, representing
70.4% of the total mobile customer base at that date (+4.8
percentage points year on year).
Fixed services rose 2.6% in the fourth quarter after increasing
3.5% in the third quarter on a comparable basis. Broadband growth
remains strong (+7.8% in the fourth quarter following 10.0% growth
in the third quarter) and was driven by a customer base increase of
7.5% year on year to 7.1 million at December 31, 2017, including
2.6 million fibre customers (+46.2% year on year).
Customer convergent offers in the Europe segment reached 4.3
million customers at December 31, 2017 (+15.0% year on year) and
142,000 net sales in the fourth quarter of 2017, driven by Poland,
Romania and Belgium.
Adjusted EBITDA
for the Europe segment increased 5.8% in 2017 on a comparable
basis. The increase in revenues was partially offset by higher
content costs, interconnection costs and, to a lesser extent,
increased labour expenses.
CAPEX in the
Europe segment rose 2.1% on a comparable basis. The significant
increase in fibre and mobile services (4G and 4G+) investments was
largely offset by a decrease in other investments.
Spain
|
2017 |
2016 |
2016 |
17/16 |
17/16 |
In
millions of euros |
|
comparable basis |
historical basis |
comparable basis |
historical basis |
|
|
|
|
|
|
Revenues |
5,371 |
5,014 |
5,014 |
7.1 % |
7.1 % |
Adjusted
EBITDA |
1,582 |
1,351 |
1,349 |
17.0 % |
17.2 % |
Adjusted EBITDA /
Revenues |
29.4 % |
26.9 % |
26.9 % |
|
0 |
Operating
Income |
569 |
- |
276 |
- |
106.2 % |
CAPEX |
1,115 |
1,086 |
1,086 |
2.7 % |
2.7 % |
CAPEX / Revenues |
20.8 % |
21.7 % |
21.7 % |
|
0 |
In Spain, revenues grew a record 7.1% in 2017 after a 6.0% rise
in 2016 on a comparable basis, driven by convergence and rapid
development of fibre.
In the fourth quarter, revenues were up 5.0% after a 6.4% rise in
the third quarter. Revenues from consumer convergence rose 9.2%
(after an 11.8% increase in the third quarter of 2017), driven by
1.9% growth in the customer base year on year (3.1 million
customers at December 31, 2017) and a 6.7% rise in revenues per
unit (ARPCO[14]) in the
fourth quarter. The consumer convergence base represented 83.1% of
consumer fixed broadband customers at December 31, 2017 (+1.7
percentage points year on year).
Mobile services rose 6.1% in the fourth quarter of 2017 after a
7.5% rise in the third quarter, driven by the enrichment of offers
and the deployment of 4G (to 9.3 million customers at December 31,
2017, +18% year on year), which is reflected by the 5.7% rise of
mobile ARPU in the fourth quarter. Contract customer
base[15] increased
1.8% year on year (11.446 million customers at the end of 2017),
with 61,000 net sales in the fourth quarter. At the same time, the
growth of mobile services provided to other operators remained
strong (national roaming, network sharing and visitor
roaming).
Fixed services rose 3.1% in the fourth quarter of 2017 after a 4.8%
rise in the third quarter, driven by fixed broadband (+5.4% in the
fourth quarter and +8.3% in the third quarter). Fixed broadband had
4.2 million customers as of December 31, 2017 (+0.5% year on year),
and saw ARPU increase 4.2% in the fourth quarter. Fibre net sales
were 175,000 in the fourth quarter. With 2.3 million customers at
the end of 2017 (+40.4% year on year), this represents 54.4% of the
fixed broadband customer base (+15.5 percentage points year on
year). TV services also grew rapidly, with 626,000 customers at the
end of 2017 (+23.4% year on year).
In Spain, adjusted EBITDA
increased sharply in 2017 (+17.0% on a comparable basis) and the
adjusted EBITDA margin (29.4%) improved by 2.5 percentage points
compared to 2016. Sustained revenue growth (partially offset by
increased content costs and commercial expenses) was complemented
by favourable developments in network costs related to the
migration of ADSL customers to the Orange Spain fibre network.
CAPEX in Spain rose 2.7% in
2017, driven by very high-speed broadband. 4G coverage reached
95.7% of the population as of December 31, 2017 (+5.4 percentage
points year on year) and a total of 12.0 million homes had access
to fibre connectivity at that date (+2.4 million in one year).
Poland
|
2017 |
2016 |
2016 |
17/16 |
17/16 |
In
millions of euros |
|
comparable basis |
historical basis |
comparable basis |
historical basis |
|
|
|
|
|
|
Revenues |
2,674 |
2,711 |
2,644 |
(1.4)% |
1.1 % |
Adjusted
EBITDA |
707 |
743 |
725 |
(4.8)% |
(2.4)% |
Adjusted EBITDA /
Revenues |
26.4 % |
27.4 % |
27.4 % |
|
0 |
Operating
Income |
52 |
- |
(405) |
- |
- |
CAPEX |
443 |
466 |
455 |
(4.9)% |
(2.5)% |
CAPEX / Revenues |
16.6 % |
17.2 % |
17.2 % |
|
0 |
Revenues for Poland fell 2.4%
in the fourth quarter of 2017 after a 1.3% drop in the third
quarter of 2017 on a comparable basis. The slowdown in the fourth
quarter is attributable to mobile equipment sales, which fell 12.8%
(after a 13.3% rise in the third quarter) following a sales
strategy changes to focus on value rather than volumes (reduction
of subsidies).
Consumer convergent offers continued to grow steadily, with 90,000
net additions in the fourth quarter of 2017, driven by the success
of the Orange Love offers. By the end of 2017, consumer convergent
offers reached 1.035 million customers (+55% year on year), and
represented 50% of the consumer fixed broadband customer base (+15
percentage points year on year).
Mobile services, which were down 5.9% in the fourth quarter of 2017
on a comparable basis (after a 7.1% drop in the third quarter),
continued to be impacted by the development of instalment payments
and SIM-only offers.
Sales momentum remained solid in the fourth quarter with contract
net sales of 64,000, following a rationalisation of offers last
September. As of December 31, 2017, the contract customer base was
9.7 million, up 5.0% year on year, while 4G had 5.7 million users
(+34% year on year).
Fixed services fell 1.2% on a comparable basis in the fourth
quarter of 2017, (after a 1.7% drop in the third quarter). Fixed
broadband growth accelerated, with revenues up 7.8% in the fourth
quarter (following a 6.6% rise in the third quarter) driven by
convergent offers, fibre and fixed 4G. The fixed broadband customer
base stood at 2.4 million at the end of 2017 (+10.5% year on year),
of which 214,000 were fibre customers (+143% year on year). At the
same time, traditional telephony revenues declined 13.5% in the
fourth quarter.
Growth in other revenues remained strong, driven
by fixed equipment sales (ICT and fixed 4G) and the development of
energy distribution offers.
Adjusted EBITDA for Poland
was down 4.8% in 2017 on a comparable basis, an improvement of 5.4
percentage points from 2016 (-10.2%). Lower revenues and higher
interconnection costs (notably roaming) were partially offset by
lower commercial costs.
The improvement was particularly significant in the second half of
the year, with a limited decrease of 1.8% after a 7.4% drop in the
first half of the year. This was mostly due to the greater decrease
in commercial costs (reduction of mobile handset subsidies and
distribution channel optimisation).
The lower CAPEX in Poland in
2017 (-4.9%) on a comparable basis is related to mobile 4G, which
had a coverage rate of 99.8% of the population at the end of 2017.
At the same time, investments in fibre increased significantly. As
of December 31, 2017, there were 2.5 million connectable households
to fibre (+1 million year on year).
Belgium &
Luxembourg
|
|
|
2017 |
2016 |
2016 |
17/16 |
17/16 |
In
millions of euros |
|
comparable basis |
historical basis |
comparable
basis |
historical basis |
|
|
|
|
|
|
Revenues |
1,251 |
1,242 |
1,242 |
0.8 % |
0.8 % |
Adjusted
EBITDA |
302 |
316 |
316 |
(4.3)% |
(4.3)% |
Adjusted EBITDA /
Revenues |
24.2 % |
25.4 % |
25.4 % |
|
0 |
Operating
Income |
62 |
- |
113 |
- |
(44.8)% |
CAPEX |
188 |
168 |
168 |
12.4 % |
12.4 % |
CAPEX / Revenues |
15.1 % |
13.5 % |
13.5 % |
|
0 |
Revenues from
Belgium & Luxembourg fell 1.3% in the fourth quarter of 2017,
compared with a 1.7% rise in the third quarter. The fourth quarter
was marked by the sharp decline of MVNOs, in connection with the
migration of Telenet customers to the BASE network and the end of
the Lycamobile contract last July. In addition, there was a 7.3%
decline in mobile equipment sales (after a 4.4% rise in the third
quarter).
Excluding MVNO, mobile services grew 2.9% in the fourth quarter. In
Belgium, there were 28,000 net additions to contracts[16] in the
fourth quarter, the highest level since the fourth quarter of 2011,
and quarterly ARPU rose 3.2%. The contract16 customer
base in Belgium & Luxembourg rose to 2.423 million customers at
December 31, 2017 (+3.3% year on year).
Fixed services were up 29.2% in the fourth quarter (after a 27.7%
rise in the third quarter), driven by the success of consumer
convergent offers with 97,000 customers as of December 31, 2017,
compared to 31,000 a year earlier.
Adjusted EBITDA for Belgium
and Luxembourg was down 4.3% in 2017. Excluding the impact on 2016
results of the agreement with the Walloon Region regarding pylon
tax (16 million euros), adjusted EBITDA rose by 0.7%. Revenue
growth and lower commercial costs were partly offset by higher
interconnection costs (roaming) and connectivity costs (cable
network access).
CAPEX for
Belgium & Luxembourg increased 12.4% in 2017, and was
attributable to the development of convergent cable offers (IT and
customer equipment). This was partially offset by the decrease in
4G mobile investments, from which coverage reached 99.7% in Belgium
at the end of 2017 (62.9% for 4G+).
Central European
countries
|
2017 |
2016 |
2016 |
17/16 |
17/16 |
In
millions of euros |
|
comparable basis |
historical basis |
comparable basis |
historical basis |
|
|
|
|
|
|
Revenues |
1,749 |
1,654 |
1,648 |
5.7 % |
6.2 % |
Adjusted
EBITDA |
547 |
557 |
554 |
(1.7)% |
(1.2)% |
Adjusted EBITDA /
Revenues |
31.3 % |
33.6 % |
33.6 % |
|
|
Operating
Income |
226 |
- |
202 |
- |
11.9 % |
CAPEX |
266 |
252 |
251 |
5.6 % |
6.0 % |
CAPEX / Revenues |
15.2 % |
15.2 % |
15.2 % |
|
0 |
Revenues from
Central European countries rose 5.6% in the fourth quarter of 2017,
compared with 6.9% in the third quarter on a comparable basis. The
mobile contract customer base[17] grew 2.3%
year on year on a comparable basis, to 7.9 million at the end of
2017, and the 4G mobile base (4.6 million customers) experienced
very strong growth (+44% year on year). Fixed broadband had 394,000
customers at 31 December 2017 and consumer convergent offers (sold
in all three countries) had 127,000 customers at that
date.
In Romania, revenues rose 7.7% in the fourth quarter after a 10.4%
rise in the third quarter, driven by mobile services and mobile
equipment sales. Fixed broadband growth was boosted by the success
of convergent offers (+33,000 net sales in the fourth quarter).
In Slovakia, revenues were up 2.5% in the fourth quarter after a
0.4% rise in the third quarter. In addition to a recovery in mobile
equipment sales, mobile services trends and fixed broadband
services also improved in the fourth quarter. .
In Moldova, revenues fell 0.4% in the fourth quarter. Mobile
services continued to be affected by the decline in international
traffic, while steady growth in mobile equipment and fixed
broadband sales (driven by convergent offers) continued.
Adjusted EBITDA for Central
European countries fell 1.7% in 2017 on a comparable basis. The
increase in interconnection costs[18] and
commercial expenses (purchases of mobile handsets) was largely
offset by growth in revenues.
CAPEX in the Central European
countries rose 5.6% in 2017 on a comparable basis, with the
acceleration of fibre roll-out in Slovakia and 4G in Romania. As of
December 31, 2017, 4G covered 93.2% of the population in Romania,
90% in Slovakia and 98% in Moldova, and the number of households
connected to very high-speed broadband reached 2.3 million in
Romania, 0.4 million in Slovakia and 0.2 million in Moldova.
Africa & Middle
East
|
|
|
2017 |
2016 |
2016 |
17/16 |
17/16 |
In
millions of euros |
|
comparable basis |
historical basis |
comparable basis |
historical basis |
|
|
|
|
|
|
Revenues |
5,030 |
4,881 |
5,245 |
3.0 % |
(4.1)% |
Adjusted
EBITDA |
1,612 |
1,506 |
1,658 |
7.0 % |
(2.8)% |
Adjusted EBITDA /
Revenues |
32.1 % |
30.9 % |
31.6 % |
|
0 |
Operating
Income |
522 |
- |
68 |
- |
- |
CAPEX |
1,021 |
954 |
962 |
7.0 % |
6.1 % |
CAPEX / Revenues |
20.3 % |
19.5 % |
18.3 % |
|
0 |
Revenue growth
in the Africa & Middle East segment continued to increase, up
5.7% in the fourth quarter after 3.1% growth in the third quarter,
on a comparable basis. Alongside faster growth in Morocco and
Egypt, the Democratic Republic of Congo returned to growth. The
Sonatel Group[19] (mainly
Mali and Guinea) and the Côte d'Ivoire Group[20]
(particularly Burkina Faso) also contributed to the quarterly
growth of the segment.
The growth of mobile data services remained very strong (+36% in
the fourth quarter) and driven by 4G, which is now available in 11
countries[21] (with 11.1
million customers as of December 31, 2017, +16% in three months).
Likewise, Orange Money revenues rose 58% in the fourth quarter,
with 36.9 million customers at December 31, 2017 (including 12.1
million active customers). The enterprise market accounted for a
third of the segment's growth in 2017.
In the Africa & Middle East segment, the mobile customer base
was 130.5 million at December 31, 2017, a year-on-year increase of
8.2% (+9.9 million customers). In particular, contract offers (11.2
million as of December 31, 2017) grew 13.5% (+1.3 million) year on
year, mainly in Egypt and Morocco.
Adjusted EBITDA for the
Africa & Middle East segment rose 7.0% in 2017 on a comparable
basis, and the adjusted EBITDA margin (32.1%) improved 1.2
percentage points compared to 2016. The growth in revenues and the
decrease in interconnection costs offset the increase in technical
maintenance costs (in line with network expansion) and the increase
in operational taxes.
CAPEX for the Africa &
Middle East segment rose 7.0% in 2017 on a comparable basis. The
increase in investments related to the deployment of 4G networks in
the 11 countries covered and, to a lesser extent, the deployment of
fibre.
Enterprise
|
2017 |
2016 |
2016 |
17/16 |
17/16 |
In
millions of euros |
|
comparable basis |
historical basis |
comparable
basis |
historical basis |
|
|
|
|
|
|
Revenues |
7,252 |
7,323 |
7,353 |
(1.0)% |
(1.4)% |
Adjusted
EBITDA |
1,307 |
1,337 |
1,342 |
(2.3)% |
(2.7)% |
Adjusted EBITDA /
Revenues |
18.0 % |
18.3 % |
18.3 % |
|
0 |
Operating
Income |
890 |
- |
922 |
- |
(3.5)% |
CAPEX |
382 |
335 |
336 |
13.9 % |
13.5 % |
CAPEX / Revenues |
5.3 % |
4.6 % |
4.6 % |
|
0 |
Revenues from
the Enterprise segment was relatively stable in the fourth quarter
of 2017, -0.1% after a 0.5% drop in the third quarter on a
comparable basis. The improved trends, notably IT and integration
services, which grew 3.6% in the fourth quarter after a 0.8% rise
in the third quarter. Cyberdefence grew 17% in the fourth quarter,
the Cloud +15%, and Applications[22]
+8%.
Mobile was up 3.0% in the fourth quarter, driven by equipment
sales, while services remained impacted by the end of roaming
charges in Europe last July. The number of contract
customers[23] was 2.767
million at December 31, 2017 (+4.1% year over year) and the number
of machine-to-machine SIM cards grew sharply (26.5% over one
year).
Data services fell slightly (-2.3%) in the fourth quarter after a
3.8% drop in the third quarter. Improvements mainly affected IP-VPN
services, which had 352,000 subscribers as of December 31, 2017
(+0.3% year on year).
Voice services fell 3.6% in the fourth quarter. The downward trend
in traditional fixed telephony was partially offset by the rise in
voice over IP and customer relationship services (contact number
services).
Adjusted EBITDA for the
Enterprise segment fell 2.3% in 2017 on a comparable basis. The
decrease in revenues (-1.0%) and the increase in commercial
expenses (cost of equipment sold) were partially offset by lower
network costs and reduction in other operational charges.
CAPEX for the Enterprise
segment increased 13.9% in 2017 on a comparable basis, due to the
accelerated transformation of the segment's IT system and the
development of network virtualisation.
International Carriers &
Shared Services
|
|
|
2017 |
2016 |
2016 |
17/16 |
17/16 |
In
millions of euros |
|
comparable basis |
historical basis |
comparable
basis |
historical basis |
|
|
|
|
|
|
Revenues |
1,651 |
1,806 |
1,812 |
(8.6)% |
(8.9)% |
Adjusted
EBITDA |
(78) |
(45) |
(56) |
(81.8)% |
(39.5)% |
Adjusted EBITDA /
Revenues |
(4.8)% |
(2.4)% |
(3.1)% |
|
|
Operating
Income |
(704) |
- |
(565) |
- |
(24.8)% |
CAPEX |
282 |
267 |
277 |
5.1 % |
1.5 % |
CAPEX / Revenues |
17.1 % |
14.8 % |
15.3 % |
|
|
Revenues from the
International Carriers and Shared Services segment recorded an 8.6%
decline on a comparable basis in 2017, which was linked to the
decline in voice services to international operators, particularly
for African destinations and Maghreb.
Adjusted EBITDA in 2017 was
down 33 million euros compared to 2016, on a comparable basis. The
decrease in revenues and the decrease in income from the sale of
fixed assets were partly offset by the decrease in interconnection
costs and lower expenses related to brand development.
CAPEX reached
282 million euros in 2017, an increase of 15 million euros on a
comparable basis, relating to investments in submarine cables
(including the Kanawa submarine cable between French Guyana,
Martinique and Guadeloupe) and in content (Orange Studio).
Orange Bank
|
2017 |
2016 |
2016 |
17/16 |
17/16 |
In
millions of euros |
|
comparable basis |
historical basis |
comparable basis |
historical basis |
|
|
|
|
|
|
Net Banking
Income |
73 |
73 |
21 |
0.4 % |
257.2 % |
Cost of risk of
bank credit |
(6) |
(10) |
(2) |
(41.4)% |
203.5 % |
Operating
Income |
(93) |
- |
85 |
- |
- |
CAPEX |
61 |
15 |
15 |
322.1 % |
322.1 % |
Launched on November 2, 2017 in
metropolitan France, Orange Bank's new banking and digital offer
already had 55,000 customers as of December 31, 2017.
Orange Bank's operating
income in 2017 was a loss of 93 million euros, compared to an
operating profit of 85 million euros in 2016 (historical basis),
mainly due to:
-
integration of the bank's activities over twelve
months in 2017, compared with three months in 2016;
-
costs incurred in preparation for the launch of
the Orange Bank offer;
-
and effects related to Orange's new majority
stake in Groupama Banque, now Orange Bank (loss of 27 million euros
in 2017, compared to a profit of 97 million euros in 2016).
CAPEX rose 46
million euros, mainly due to IT investments, in preparation for the
commercial launch of the Orange Bank offer in November 2017.
Schedule of upcoming events
26 April 2018: 1st quarter 2018
results
Contacts
press: +33 1 44 44 93 93
Jean-Bernard Orsoni
jeanbernard.orsoni@orange.com
Tom Wright
tom.wright@orange.com
Olivier Emberger
olivier.emberger@orange.com
|
financial communications: +33 1 44 44 04 32
(analysts and investors)
Patrice Lambert-de Diesbach
p.lambert@orange.com
Isabelle Casado
isabelle.casado@orange.com
Samuel Castelo
samuel.castelo@orange.com
Luca Gaballo
luca.gaballo@orange.com
Didier Kohn
didier.kohn@orange.com
Anna Vanova
anna.vanova@orange.com
individual shareholders: 0 800 05 10 10 |
Disclaimer
This press release contains
forward-looking statements about Orange. 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. Important factors
that could cause actual results to differ from the results
anticipated in the forward-looking statements include, among
others: the success of Orange's strategy, particularly its ability
to maintain control over customer relations when facing competition
with OTT players, risks related to banking activities, loss or
disclosure to third parties of customers' data, Orange's ability to
withstand intense competition in mature markets, networks or
software failures due to cyberattacks, damage to networks caused by
natural disasters, terrorist acts or other reasons, various frauds
affecting Orange or its customers, Orange's ability to retain the
necessary skills given the high level of employee retirements and
the development of new needs, difficulties in integrating newly
acquired businesses as part of the telecommunication sector's
consolidation in Europe, its ability to capture growth
opportunities in emerging markets and the risks specific to those
markets, possible adverse health effects associated with the use of
telecommunications equipment, risks related to the single brand
strategy, the eruption of a global financial or economic crisis,
fiscal and regulatory constraints and changes, the results of
litigation regarding regulations, competition and other matters,
disagreements with its co-shareholders in companies that Orange
does not control, the terms of access to capital markets, interest
rate or exchange rate fluctuations, Orange's credit ratings,
changes in assumptions underlying the accounting value of certain
assets resulting in their impairment, and credit risks or
counterparty risks on financial transactions. More detailed
information on the potential risks that could affect our financial
results is included in the Registration Document filed on 6 April
2017 with the French Autorité des Marchés
Financiers (AMF) and in the annual report on Form 20-F filed on
7 April 2017 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.
* Data on a comparable basis.
[1] Excluding machine to machine
[2] Download
speeds greater than or equal to 100 Mbps.
[3] Subject to
the approval of the Annual General Meeting of Shareholders.
[4] These
objectives, originally announced on the basis of the financial data
presented in accordance with accounting standard IAS 18, are
maintained under the application of the new accounting standard
IFRS 15 in effect since January 1, 2018. They do not include the
effects of IFRS 16, which will take effect on January 1, 2019.
[5] Expressed
as data on a historical basis, 2017 revenues showed an increase of
0.4% over 2016. This includes:
- the impact of changes in scope of consolidation (+0.4
percentage points), mainly the acquisition of Cellcom in Liberia
and Tigo in the Democratic Republic of Congo (nine months and six
months of activity in 2016 respectively), and the acquisition of
entities from the Bharti group in Burkina Faso (with six months of
activity in 2016) and in Sierra Leone (with five months of activity
in 2016);
- the effect of exchange rate fluctuations (-1.2 percentage
points) and primarily the decline in the Egyptian pound.
[6] Includes
Orange France customers and Enterprise customers in France.
[7] Excluding
machine-to-machine.
[8] Excluding
machine to machine.
[9] Consisting
of the income on disposal of EE of 2.080 billion euros and the EE
dividends of 173 million euros received in January 2016, prior to
its sale.
[10] Download
speeds greater than or equal to 100 Mbps.
[11] These
4-year bonds were issued on the basis of a reference price of 2.88
pounds sterling per BT share. They include an exchange premium of
35% corresponding to an exchange price of 3.89 pounds sterling per
BT share, and bear interest at a rate of 0.375% per year, which is
a negative rate of interest after conversion into euros.
[12] Subject to
the approval of the Annual General Meeting of Shareholders.
[13] Excluding
machine-to-machine.
[15] Excluding
machine-to-machine.
[16] Excluding
machine-to-machine.
[17] Excluding
machine-to-machine.
[18] The end of
roaming charges in Europe generated a very strong increase in
traffic volumes in the second half of the year from customers to
other European countries.
[19] The
managerial entity known as "Sonatel group" combines Orange's
operations in Senegal, Mali, Guinea, Sierra Leone and Guinea
Bissau.
[20] The
managerial entity known as "Côte d'Ivoire group" combines Orange's
operations in Côte d'Ivoire, Burkina Faso and Liberia.
[21] Excluding
entities accounted for by the equity method, i.e.: Botswana,
Cameroon, Côte d'Ivoire, Egypt, Guinea-Bissau, Jordan, Liberia,
Madagascar, Mali, Morocco and Senegal.
[22]
Applications include projects in the machine-to-machine and
connected objects fields, the digital customer experience, data
analysis (Big Data) and systems integration.
[23] Excluding
machine-to-machine.
PR_Orange_FY2017_results_EN_210218.pdf
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Orange via Globenewswire
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