Press Release Orange : Third quarter 2022 Results
Press release
Paris, 25 October 2022
Financial information at 30 September 2022
Growth in revenues and slight increase in
EBITDAaL
The Group confirms its financial objectives for
2022
In millions of euros |
|
3Q 2022 |
changecomparablebasis |
changehistoricalbasis |
|
9M 2022 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
10,823 |
1.0 % |
3.0 % |
|
32,120 |
0.4 % |
2.4 % |
EBITDAaL |
|
3,582 |
0.2 % |
0.9 % |
|
9,515 |
0.5 % |
1.4 % |
eCAPEX (excluding licenses) |
|
1,731 |
5.2 % |
1.3 % |
|
5,143 |
(4.4)% |
(7.4)% |
EBITDAaL - eCAPEX |
|
1,851 |
(4.1)% |
0.5 % |
|
4,372 |
7.0 % |
14.1 % |
-
Revenues for the third quarter 2022 rose 1.0%1
year on year, driven by:
- Europe, which
performed well (+3.2%) with Spain returning to growth
- Africa &
Middle East, which grew 4.2% and remains on course to meet its
annual growth target of around 6%
- Enterprise IT
& Integration Services, which accelerated (+6.8%) and offset
the decline in legacy activities, resulting in stable revenues
- Retail services
in France (+2.6% excluding PSTN), for which total revenues dipped
by 1% year on year but increased compared with 2Q in the absence of
any significant underlying effect related to co-financing
- Totem (+14.2%),
whose third-party customers now account for 18% of hosting service
revenues (versus 15% in 3Q 2021)
The acceleration in revenues (+1.0% after +0.7%
in 1Q and -0.4% in 2Q) was due in particular to higher equipment
sales and the reduced impact from falling rates for call
terminations, which are low- or zero-margin activities.
-
EBITDAaL rose 0.2% year on year in the third
quarter of 2022.
In line with our year-end targets, EBITDAaL
growth is expected to accelerate in the fourth quarter thanks to
the reversal of underlying effects (employee shareholding program,
Orange Money).
-
eCAPEX rose 5.2% in the third quarter of 2022.
Over the first nine months of the year, it fell by 4.4% to
5,143 million euros.
Despite the very challenging macroeconomic and
geopolitical climate, the Group confirms its financial
objectives for 2022, a milestone towards the achievement
of its 2023 commitments.
Orange also confirms payment on 7 December 2022
of an interim cash dividend for 2022 of
0.30 euros per share. A dividend of 0.70 euros per share for
the 2022 fiscal year will be proposed to the 2023 Shareholders’
Meeting.
Commenting on the publication of these results,
Christel Heydemann, Chief Executive Officer of the Orange group,
said:
“In an inflation-dominated macroeconomic
environment, Orange has again delivered resilient results and
demonstrated the complementary nature of its different markets. The
Group’s third quarter revenues grew by 1% largely thanks to the
contribution of its European countries and Africa. EBITDAaL also
grew slightly rising 0.2% thanks in particular to Scale Up, our
program of net savings on indirect costs, which continues to
deliver to plan.
The quarter was notable for the excellent
commercial performance in France, and also for a continued increase
in customer satisfaction. The growth in revenues across our
European footprint accelerated to +3.2%, driven by retail services
that were 1.9% higher year on year. This solid momentum was a
feature of all our countries in the region, including in Spain
where our process of simplification, the stabilization of the
client base and the launch of enriched service offers for high end
customers enabled us to reverse the negative trend of the last
years and return to growth for the first time since the first
quarter of 2019.
Momentum in the Africa region once again proved
solid and resilient with continued growth, rising 4.2% despite the
geopolitical context which weighed on West Africa.
In the Enterprise segment pressure on margins
remained intense and we are concentrating our efforts here on the
transformation of our business models.
We are confident of accelerated EBITDAaL in the
fourth quarter thanks to the reversal of underlying effects and a
commercial performance that should remain robust during end of year
holiday period.
I am fully focused, along with all our teams, on
achieving our 2022 objectives and on the preparation of our
strategic route map for the Group. We are facing an exceptional
economic context which requires us to make the appropriate choices
in the coming months. Looking ahead, we shall present our strategic
plan for the period to 2030 on 16 February 2023 following the
publication of our 2022 results.”
Comments on Group key
figures
Revenues
In the third quarter of 2022, Orange group
revenues reached 10,823 million euros. This
represents an increase of 1.0% (+104 million euros) year on
year. The continued growth was driven by retail
services2, which grew by 133 million euros (+1.7%
year on year), and equipment sales, which rose
63 million euros (+8.6%), while the decline in
wholesale services slowed to -3.1%
(-59 million euros). This growth was driven mainly by Europe
and Africa & Middle East.
Customer base growth
There were 11.6 million convergent
customers Group-wide at 30 September 2022, an increase of
0.8% year on year.
Mobile services had
240.4 million accesses at 30 September 2022, an increase of
6.1% year on year, including 92.1 million contracts, an
increase of 8.3% year on year.
Fixed services totaled
45.7 million accesses (a fall of 2.2% year on year), including
13.7 million very high-speed broadband accesses, which
continued their strong growth (+16.8% year on year). Fixed
narrowband accesses decreased by 13.4% year on year.
Mobile Financial Services had
1.9 million customers in Europe and 1.0 million customers
in Africa at 30 September 2022.
EBITDAaL
Group EBITDAaL totaled
3.58 billion euros in the third quarter of 2022. Its increase
was restricted to 0.2% because of slower growth in retail services
in France and Africa & Middle East following the post-pandemic
recovery in 2021. Moreover, Enterprise continues to have a negative
impact.
Over the first nine months of the year, EBITDAaL
reached 9,515 million euros (+0.5%).
In line with our year-end targets, EBITDAaL
growth is expected to accelerate in the fourth quarter due to the
reversal of underlying effects, particularly the employee
shareholding program granted in the fourth quarter of 2021, which
will result in an automatic 5% increase year on year.
Despite high inflation, the Scale Up operational
efficiency program is still on track to achieve cumulative net cost
savings of 600 million euros between 2019 and the end of
20223.
The Group's direct electricity purchases in
Europe are fully covered for the year 2022 and more than 90%
covered for 2023.
EBITDAaL from telecom
activities totaled 3.61 billion euros, an increase of
0.2%.
eCAPEX
Group eCAPEX totaled 1,731
million euros in the third quarter of 2022, an increase of 5.2%
year on year. Over the first nine months of the year, the figure
fell by 4.4% to 5,143 million euros. This trend is in line
with the objective of keeping eCAPEX below 7.4 billion euros
for the full year 2022.
At 30 September 2022, Orange had
62.6 million households connectable to FTTH worldwide (up
15.2% year on year), including 32.3 million in France
(+17.6%), where the FTTH customer base increased by 22%.
Changes in the asset
portfolio
There were no significant changes in the asset
portfolio in the third quarter of 2022.
Following exclusive negotiations that began in
March 2022, Orange and MásMóvil signed an agreement on July 22
to combine their Spanish activities. This will take the form of a
joint venture co-controlled by Orange and MásMóvil with equal
governance rights. The transaction is based on an enterprise value
of 18.6 billion euros. It has been submitted to the competent
administrative authorities for approval and is expected to close
during the second half of 2023 at the latest.
________________________________________________________________________________
The Board of Directors of Orange SA met on 24
October 2022 to review the consolidated financial results as of 30
September 2022.
More detailed information on the Group’s
financial results and performance indicators is available on the
Orange website www.orange.com/en/consolidated-results.
Review by operating segment
France
In millions of euros |
|
3Q 2022 |
changecomparablebasis |
changehistoricalbasis |
|
9M 2022 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
4,465 |
(1.0)% |
(0.4)% |
|
13,291 |
(1.5)% |
(1.1)% |
Retail services (B2C+B2B) |
|
2,748 |
0.9 % |
0.9 % |
|
8,214 |
1.3 % |
1.3 % |
Convergence |
|
1,217 |
3.1 % |
3.1 % |
|
3,623 |
3.6 % |
3.6 % |
Mobile-only |
|
592 |
2.7 % |
2.7 % |
|
1,746 |
2.8 % |
2.8 % |
Fixed-only |
|
938 |
(2.9)% |
(2.9)% |
|
2,845 |
(2.2)% |
(2.2)% |
Wholesale |
|
1,223 |
(5.3)% |
(5.2)% |
|
3,678 |
(8.1)% |
(8.3)% |
Equipment sales |
|
340 |
9.8 % |
13.0 % |
|
892 |
5.3 % |
8.4 % |
Other revenues |
|
154 |
(16.7)% |
(8.4)% |
|
508 |
(5.0)% |
2.8 % |
Improvement in revenues
Third-quarter revenues were
down 44 million euros (-1.0% year on year). This more limited
decrease (after a decline of 2.7% in the second quarter) was due
mainly to there being no significant base effects this quarter on
wholesale revenues.
Retail services continued to
grow, up 2.6% excluding PSTN (compared with +3.4% in the second
quarter). Against a background of fiber acquisitions returning to
normal in France after the spike during lockdowns, this reflects
another solid performance in terms of both value and volume.
In mobile, our number
portability balance was positive compared to other operators. The
quarter’s 212,000 net additions excluding M2M (versus 121,000 in
the third quarter of 2021), driven principally by the Orange brand,
fueled equipment sales and helped mobile ARPO to increase by 0.4%
year on year to 17.3 euros, with the churn rate still
improving (10.9% compared with 11.0% in the third quarter of
2021).
In fixed broadband, Orange
France delivered 47,000 net additions, driven by 293,000 FTTH net
additions (versus 343,000 in the third quarter of 2021). These
volumes remain higher than in 2019 but now normalized compared with
the lockdown periods, with ARPO stable.
Convergent ARPO continued to grow, with an
increase of 2.2% in the third quarter to reach 71.4 euros.
Finally, we continue to make great strides in
customer satisfaction, with our B2C market Net Promoter Score
climbing by 2.5 points since the start of the year. ARCEP also
named us the best mobile network in France for the 12th year in a
row.
Europe
In millions of euros |
|
3Q 2022 |
changecomparablebasis |
changehistoricalbasis |
|
9M 2022 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
2,764 |
3.2 % |
7.0 % |
|
8,089 |
0.1 % |
4.4 % |
Retail services (B2C+B2B) |
|
1,844 |
1.9 % |
5.9 % |
|
5,487 |
1.1 % |
5.7 % |
Convergence |
|
710 |
3.6 % |
4.6 % |
|
2,110 |
3.4 % |
4.7 % |
Mobile-only |
|
729 |
(0.5)% |
(0.4)% |
|
2,143 |
(1.3)% |
(1.1)% |
Fixed-only |
|
299 |
(3.0)% |
19.0 % |
|
913 |
(3.8)% |
18.1 % |
IT & Integration Services |
|
107 |
27.8 % |
34.6 % |
|
321 |
19.3 % |
35.3 % |
Wholesale |
|
485 |
2.0 % |
7.3 % |
|
1,362 |
(7.0)% |
(1.1)% |
Equipment sales |
|
386 |
10.3 % |
11.1 % |
|
1,105 |
2.7 % |
3.8 % |
Other revenues |
|
49 |
14.2 % |
14.4 % |
|
136 |
20.1 % |
20.7 % |
Revenues return to growth
Revenues from Europe (including
Spain) were back to growth in the third quarter (+3.2%) with an
outstanding performance in Poland (+8.4%).
This growth was lead in particular by the
acceleration in retail services, which saw
continued good momentum driven by convergence, IT & Integration
Services and a further recovery in customer roaming.
The third quarter also witnessed a recovery in
equipment sales across all countries, due to the easing of health
restrictions compared with the previous year.
In the current inflationary context, all
countries in this segment were able to implement tariff increases,
proving their resilience and ability to adapt.
In Spain, revenues grew (+0.2%)
for the first time since the first quarter of 2019.
Retail services continued to recover (down 1.4%
following declines of 2.1% in 2Q and 4% in 1Q), driven by higher
convergent ARPO (+2.4% year on year) and a lower churn rate year on
year.
The Wholesale business also saw a return to
growth this quarter (+4.2%) due principally to the recovery in
visitor roaming (+17.9%).
The continued improvement in retail services
arising from our efforts on the cost structure gives us confidence
in achieving our objective of returning to organic cash flow growth
in 2022 and EBITDAaL growth in 2023.
Africa & Middle East
In millions of euros |
|
3Q 2022 |
changecomparablebasis |
changehistoricalbasis |
|
9M 2022 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
1,782 |
4.2 % |
7.9 % |
|
5,162 |
6.6 % |
10.0 % |
Retail services (B2C+B2B) |
|
1,578 |
4.9 % |
8.8 % |
|
4,561 |
7.4 % |
11.0 % |
Mobile-only |
|
1,358 |
3.5 % |
6.8 % |
|
3,936 |
6.3 % |
9.3 % |
Fixed-only |
|
210 |
14.9 % |
25.1 % |
|
595 |
13.6 % |
22.3 % |
IT & Integration Services |
|
10 |
7.6 % |
(8.8)% |
|
31 |
55.4 % |
27.6 % |
Wholesale |
|
173 |
1.6 % |
4.2 % |
|
496 |
1.8 % |
4.3 % |
Equipment sales |
|
24 |
(10.8)% |
(9.2)% |
|
79 |
(4.0)% |
(2.0)% |
Other revenues |
|
7 |
(21.2)% |
(21.3)% |
|
26 |
(7.9)% |
(7.1)% |
Cumulative
growth in line with full-year
objectives
While revenue
growth slowed in the third quarter after rebounding in 2021, it
reflects the effectiveness of our geographical diversification
strategy with 12 of the 16 countries enjoying growth while the
security environment weighs on Burkina Faso and Mali.
The third-quarter performance was fueled by the
region’s growth drivers: fixed broadband (+23.3%),
B2B (+13.4%) and Data (+16.6%), underpinned by strong growth in the
customer bases (up 24.2% for 4G and 23.9% for fixed broadband).
The decrease in Orange Money
slowed (down 16.9% following a decline of 22.6% in 2Q and 25.1% in
1Q) as a result of our response plan, which enables us to maintain
our positions in the various countries with an active customer base
and a transaction value that continues to increase. This
improvement should continue in the fourth quarter, benefitting from
a lower base effect given the significant decline in Orange Money
revenues at the end of 2021.
Enterprise
In millions of euros |
|
3Q 2022 |
changecomparablebasis |
changehistoricalbasis |
|
9M 2022 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
1,906 |
0.0 % |
2.3 % |
|
5,795 |
(0.1)% |
1.6 % |
Fixed-only |
|
862 |
(6.4)% |
(4.1)% |
|
2,600 |
(6.7)% |
(4.9)% |
Voice |
|
251 |
(7.3)% |
(6.3)% |
|
765 |
(9.3)% |
(8.6)% |
Data |
|
612 |
(6.1)% |
(3.2)% |
|
1,836 |
(5.5)% |
(3.2)% |
IT & Integration Services |
|
817 |
6.8 % |
9.5 % |
|
2,479 |
5.3 % |
7.3 % |
Mobile |
|
228 |
3.5 % |
3.5 % |
|
715 |
8.3 % |
8.3 % |
Mobile-only |
|
162 |
5.4 % |
5.4 % |
|
488 |
3.3 % |
3.3 % |
Wholesale |
|
10 |
(3.5)% |
(3.5)% |
|
30 |
(4.0)% |
(4.0)% |
Equipment sales |
|
55 |
(0.5)% |
(0.5)% |
|
197 |
25.8 % |
25.8 % |
Stable revenues
Enterprise revenues were stable
in the third quarter thanks to growth in mobile and IT &
Integration Services which offset the decline in legacy
activities.
Growth in IT &
Integration
Services accelerated (+6.8%),
driven in particular by IT activities, which achieved growth for
the nine-month period of 11% for Cloud, 9% for Digital & Data
and 13% for Cybersecurity.
Mobile continued to benefit
from the rebound in roaming activities.
The recovery plan currently being rolled out
will address the pressure exerted on margins by the profound
transformation of the business model in this segment. However, this
plan will not yet produce its effects in the second half of
2022.
Totem4
In millions of euros |
|
3Q 2022 |
changecomparablebasis |
changehistoricalbasis |
|
9M 2022 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
168 |
14.2% |
- |
|
497 |
11.5% |
- |
Wholesale |
|
168 |
14.2% |
- |
|
497 |
11.5% |
- |
Other revenues |
|
- |
- |
- |
|
- |
- |
- |
Totem revenues rose 14.2% in the third quarter
(+21 million euros). The hosting activities that contribute to
EBITDAaL stepped up their growth to 4.7% (following growth of 2.8%
in 2Q and 3.3% in 1Q), driven mainly by growth in third-party
revenues which now account for 18% of hosting revenues (versus 15%
in the third quarter of 2021).
This reflects both the greater number of sites,
which increased by 131 since the end of 2021 to reach 26,981 at 30
September, and a higher tenancy ratio of 1.37 co-tenants per site
compared with 1.34 at the end of 2021. Our recent commercial
successes, including the signing of a major agreement with
Telefónica to roll out 5G in Spain, will continue to fuel this
momentum.
International Carriers & Shared
Services
In millions of euros |
|
3Q 2022 |
changecomparablebasis |
changehistoricalbasis |
|
9M 2022 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
378 |
(3.5)% |
(3.5)% |
|
1,150 |
1.4 % |
1.3 % |
Wholesale |
|
263 |
(3.3)% |
(2.7)% |
|
801 |
0.7 % |
1.1 % |
Other revenues |
|
115 |
(4.0)% |
(5.2)% |
|
349 |
3.1 % |
1.9 % |
International wholesale services were penalized
by the structural decline in international voice services which
accelerated compared to previous quarters.
Other revenues suffered from the underlying
effects of the high level of activity by Orange Marine in the third
quarter of 2021, which was driven by the resumption of Survey
activities and the laying of submarine cables post health
crisis.
Mobile Financial Services
Mobile Financial Services had 2.9 million
customers at 30 September 2022 (including 1.9 million in
Europe and 1.0 million in Africa), an increase of 0.7 million
year on year.
In Europe, account openings grew strongly driven
by a 73% rise in Premium accounts. Loan production in Europe fell
4.9% because of the temporary halt in the marketing of mortgages
while in Africa it more than doubled over the quarter due to the
launch of higher value offers.
Calendar of upcoming events
16 February 2023 |
- Publication of full year 2022 results- Capital
Markets Day |
27 April 2023 |
- Publication of 1st quarter 2023 results |
Contacts
press: Sylvain Brunosylvain.bruno@orange.com Tom
Wrighttom.wright@orange.com |
financial communication: (analysts and investors)Patrice Lambert-de
Diesbachp.lambert@orange.comAurélia
Rousselaurelia.roussel@orange.comLouise
Racinelouise.racine@orange.comHong Hai
Vuonghonghai.vuong@orange.com |
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 31 March 2022
with the French Financial Markets Authority (AMF) and in the annual
report (Form 20-F) filed on 1st April 2022 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.
Appendix 1: financial key
indicators
Quarterly data
In millions of euros |
|
3Q 2022 |
3Q 2021comparablebasis |
3Q 2021historicalbasis |
variationcomparablebasis |
changehistoricalbasis |
Revenues |
|
10,823 |
10,719 |
10,508 |
1.0 % |
3.0 % |
France |
|
4,465 |
4,509 |
4,483 |
(1.0)% |
(0.4)% |
Europe |
|
2,764 |
2,677 |
2,583 |
3.2 % |
7.0 % |
Africa & Middle East |
|
1,782 |
1,710 |
1,652 |
4.2 % |
7.9 % |
Enterprise |
|
1,906 |
1,906 |
1,864 |
0.0 % |
2.3 % |
Totem |
|
168 |
147 |
- |
14.2 % |
- |
International Carriers & Shared Services |
|
378 |
392 |
392 |
(3.5)% |
(3.5)% |
Intra-Group eliminations |
|
(640) |
(622) |
(466) |
|
|
EBITDAaL (1) |
|
3,582 |
3,575 |
3,550 |
0.2 % |
0.9 % |
o/w Telecom activities |
|
3,611 |
3,604 |
3,579 |
0.2 % |
0.9 % |
As % of revenues |
|
33.4 % |
33.6 % |
34.1 % |
(0.3 pt) |
(0.7 pt) |
o/w Mobile Financial Services |
|
(29) |
(29) |
(29) |
(2.1)% |
(2.1)% |
eCAPEX |
|
1,731 |
1,645 |
1,709 |
5.2 % |
1.3 % |
o/w Telecom activities |
|
1,725 |
1,643 |
1,707 |
5.0 % |
1.0 % |
as % of revenues |
|
15.9 % |
15.3 % |
16.2 % |
0.6 pt |
(0.3 pt) |
o/w Mobile Financial Services |
|
6 |
1 |
1 |
307.6 % |
307.6 % |
EBITDAaL - eCAPEX |
|
1,851 |
1,931 |
1,841 |
(4.1)% |
0.5 % |
(1) EBITDAaL presentation adjustments
are described in Appendix 2.
30 September data
In millions of euros |
|
9M 2022 |
9M 2021comparablebasis |
9M 2021historicalbasis |
variationcomparablebasis |
changehistoricalbasis |
Revenues |
|
32,120 |
31,991 |
31,374 |
0.4 % |
2.4 % |
France |
|
13,291 |
13,488 |
13,433 |
(1.5)% |
(1.1)% |
Europe |
|
8,089 |
8,083 |
7,747 |
0.1 % |
4.4 % |
Africa & Middle East |
|
5,162 |
4,843 |
4,694 |
6.6 % |
10.0 % |
Enterprise |
|
5,795 |
5,801 |
5,704 |
(0.1)% |
1.6 % |
Totem |
|
497 |
445 |
- |
11.5 % |
- |
International Carriers & Shared Services |
|
1,150 |
1,134 |
1,135 |
1.4 % |
1.3 % |
Intra-Group eliminations |
|
(1,864) |
(1,802) |
(1,339) |
|
|
EBITDAaL (1) |
|
9,515 |
9,467 |
9,387 |
0.5 % |
1.4 % |
o/w Telecom activities |
|
9,600 |
9,551 |
9,471 |
0.5 % |
1.4 % |
As % of revenues |
|
29.9 % |
29.8 % |
30.2 % |
0.0 pt |
(0.3 pt) |
o/w Mobile Financial Services |
|
(85) |
(85) |
(85) |
(0.3)% |
(0.3)% |
eCAPEX |
|
5,143 |
5,382 |
5,554 |
(4.4)% |
(7.4)% |
o/w Telecom activities |
|
5,123 |
5,367 |
5,540 |
(4.5)% |
(7.5)% |
as % of revenues |
|
15.9 % |
16.8 % |
17.7 % |
(0.8 pt) |
(1.7 pt) |
o/w Mobile Financial Services |
|
20 |
14 |
14 |
39.5 % |
39.5 % |
EBITDAaL - eCAPEX |
|
4,372 |
4,085 |
3,833 |
7.0 % |
14.1 % |
(1) EBITDAaL presentation adjustments
are described in Appendix 2.
Appendix 2: adjusted data to income
statement items
Quarterly data
|
|
3Q 2022 |
|
3Q 2021historical basis |
In millions of euros |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
Revenues |
|
10,823 |
- |
10,823 |
|
10,508 |
- |
10,508 |
External purchases |
|
(4,569) |
(3) |
(4,572) |
|
(4,298) |
0 |
(4,298) |
Other operating income |
|
182 |
1 |
183 |
|
165 |
- |
165 |
Other operating expense |
|
(89) |
(11) |
(100) |
|
(91) |
(5) |
(96) |
Labor expenses |
|
(1,996) |
(100) |
(2,095) |
|
(1,982) |
12 |
(1,970) |
Operating taxes and levies |
|
(329) |
(1) |
(330) |
|
(339) |
- |
(339) |
Gains (losses) on disposal of fixed assets, investments and
activities |
|
na |
100 |
100 |
|
na |
362 |
362 |
Restructuring costs |
|
na |
(39) |
(39) |
|
na |
(40) |
(40) |
Depreciation and amortization of financed assets |
|
(27) |
- |
(27) |
|
(21) |
- |
(21) |
Depreciation and amortization of right-of-use assets |
|
(374) |
- |
(374) |
|
(363) |
- |
(363) |
Impairment of right-of-use assets |
|
- |
5 |
5 |
|
- |
- |
- |
Interests, expenses on liabilities related to financed assets |
|
(1) |
1 |
na |
|
(0) |
0 |
na |
Interests, expenses on lease liabilities |
|
(39) |
39 |
na |
|
(28) |
28 |
na |
EBITDAaL |
|
3,582 |
(8) |
na |
|
3,550 |
359 |
na |
Significant litigation |
|
(3) |
3 |
na |
|
- |
- |
na |
Specific labour expenses |
|
(92) |
92 |
na |
|
21 |
(21) |
na |
Fixed assets, investments and business portfolio review |
|
100 |
(100) |
na |
|
362 |
(362) |
na |
Restructuring program costs |
|
(34) |
34 |
na |
|
(40) |
40 |
na |
Acquisition and integration costs |
|
(19) |
19 |
na |
|
(13) |
13 |
na |
Interests, expenses on liabilities related to financed assets |
|
na |
(1) |
(1) |
|
na |
(0) |
(0) |
Interests, expenses on lease liabilities |
|
na |
(39) |
(39) |
|
na |
(28) |
(28) |
30 September data
|
|
9M 2022 |
|
9M 2021historical basis |
In millions of euros |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
Revenues |
|
32,120 |
- |
32,120 |
|
31,374 |
- |
31,374 |
External purchases |
|
(13,608) |
(15) |
(13,622) |
|
(13,031) |
(3) |
(13,034) |
Other operating income |
|
548 |
1 |
549 |
|
487 |
- |
487 |
Other operating expense |
|
(311) |
(20) |
(330) |
|
(318) |
(73) |
(391) |
Labor expenses |
|
(6,357) |
(67) |
(6,424) |
|
(6,355) |
(36) |
(6,391) |
Operating taxes and levies |
|
(1,564) |
(1) |
(1,565) |
|
(1,527) |
(31) |
(1,558) |
Gains (losses) on disposal of fixed assets, investments and
activities |
|
na |
136 |
136 |
|
na |
374 |
374 |
Restructuring costs |
|
na |
(85) |
(85) |
|
na |
(284) |
(284) |
Depreciation and amortization of financed assets |
|
(75) |
- |
(75) |
|
(62) |
- |
(62) |
Depreciation and amortization of right-of-use assets |
|
(1,136) |
- |
(1,136) |
|
(1,093) |
- |
(1,093) |
Impairment of right-of-use assets |
|
(1) |
11 |
10 |
|
- |
(60) |
(60) |
Interests, expenses on liabilities related to financed assets |
|
(2) |
2 |
na |
|
(1) |
1 |
na |
Interests, expenses on lease liabilities |
|
(100) |
100 |
na |
|
(86) |
86 |
na |
EBITDAaL |
|
9,515 |
61 |
na |
|
9,387 |
(26) |
na |
Significant litigation |
|
(4) |
4 |
na |
|
(89) |
89 |
na |
Specific labour expenses |
|
(57) |
57 |
na |
|
(21) |
21 |
na |
Fixed assets, investments and business portfolio review |
|
136 |
(136) |
na |
|
374 |
(374) |
na |
Restructuring program costs |
|
(75) |
75 |
na |
|
(344) |
344 |
na |
Acquisition and integration costs |
|
(40) |
40 |
na |
|
(34) |
34 |
na |
Interests, expenses on liabilities related to financed assets |
|
na |
(2) |
(2) |
|
na |
(1) |
(1) |
Interests, expenses on lease liabilities |
|
na |
(100) |
(100) |
|
na |
(86) |
(86) |
Appendix 3: economic CAPEX to
investments in property, plant and intangible
investment
In millions of euros |
|
3Q 2022 |
3Q 2021historicalbasis |
|
9M 2022 |
9M 2021historicalbasis |
eCAPEX |
|
1,731 |
1,709 |
|
5,143 |
5,554 |
Elimination of proceeds from sales of property, plant and equipment
and intangible assets |
|
68 |
51 |
|
192 |
99 |
Telecommunication licenses |
|
227 |
420 |
|
471 |
713 |
Financed assets |
|
67 |
2 |
|
136 |
25 |
Investments in property, plant and equipment and intangible
assets |
|
2,092 |
2,182 |
|
5,942 |
6,391 |
Appendix 4: key performance
indicators
In thousand, at the end of the period |
|
30 September
2022 |
|
30 September 2021 |
Number of convergent customers |
|
11,577 |
|
11,483 |
Number of mobile accesses (excluding MVNOs)
(1) |
|
240,424 |
|
226,521 |
o/w |
Convergent customers mobile accesses |
|
21,196 |
|
20,795 |
|
Mobile only accesses |
|
219,228 |
|
205,727 |
o/w |
Contract customers mobile accesses |
|
92,123 |
|
85,026 |
|
Prepaid customers mobile accesses |
|
148,301 |
|
141,495 |
Number of fixed accesses (2) |
|
45,654 |
|
46,696 |
|
Fixed Retail accesses |
|
31,006 |
|
31,323 |
|
|
Fixed Broadband accesses |
|
24,180 |
|
23,438 |
|
|
o/w |
Very high‑speed broadband fixed accesses |
|
13,697 |
|
11,728 |
|
|
|
Convergent customers fixed accesses |
|
11,577 |
|
11,483 |
|
|
|
Fixed accesses only |
|
12,603 |
|
11,955 |
|
|
Fixed Narrowband accesses |
|
6,826 |
|
7,884 |
|
Fixed Wholesale accesses |
|
14,648 |
|
15,373 |
Group total accesses (1+2) |
|
286,078 |
|
273,217 |
2021 data is presented on a comparable
basis.
Key performance indicators (KPI) by country are
presented in the “Orange Investors Databook Q3 2022”, available on
www.orange.com, under Finance/Results:
www.orange.com/en/latest-consolidated-results
Appendix 5: glossary
Key figures
Data on a comparable basis: data based on
comparable accounting principles, scope of consolidation and
exchange rates are presented for previous periods. The transition
from data on an historical basis to data on a comparable basis
consists of keeping the results for the period ended and then
restating the results for the corresponding period of the preceding
year for the purpose of presenting, over comparable periods,
financial data with comparable accounting principles, scope of
consolidation and exchange rate. The method used is to apply to the
data of the corresponding period of the preceding year, the
accounting principles and scope of consolidation for the period
just ended as well as the average exchange rate used for the income
statement for the period ended. Changes in data on a comparable
basis reflect organic business changes. Data on a comparable basis
is not a financial aggregate as defined by IFRS and may not be
comparable to similarly-named indicators used by other
companies.
EBITDAaL or “EBITDA after Leases”: operating
income (i) before depreciation and amortization of fixed assets,
effects resulting from business combinations, reclassification of
cumulative translation adjustment from liquidated entities,
impairment of goodwill and fixed assets, share of profits (losses)
of associates and joint ventures, (ii) after interest on debts
related to financed assets and on lease liabilities, and (iii)
adjusted for significant litigation, specific labour expenses,
fixed assets, investments and businesses portfolio review,
restructuring programs costs, acquisition and integration costs
and, where appropriate, other specific elements. EBITDAaL is not a
financial aggregate as defined by IFRS standards and may not be
directly comparable to similarly-named indicators in other
companies.
eCAPEX or “economic CAPEX”: (i) acquisitions of
property, plant and equipment and intangible assets, excluding
telecommunications licenses and financed assets, (ii) less the
price of disposal of property, plant and equipment and intangible
assets. eCAPEX is not a financial performance indicator as defined
by IFRS standards and may not be directly comparable to indicators
referenced by similarly-named indicators in other companies.
Organic Cash Flow (telecoms activities): for the
perimeter of the telecoms activities, net cash provided by
operating activities, minus (i) lease liabilities repayments and
debts related to financed assets repayments, and (ii) purchases and
sales of property, plant and equipment and intangible assets, net
of the change in the fixed assets payables, (iii) excluding effect
of telecommunication licenses paid and significant litigations paid
or received. Organic Cash Flow (telecoms activities) is not a
financial aggregate defined by IFRS and may not be comparable to
similarly-named indicators used by other companies.
Retail services (B2C + B2B): aggregation of
revenues from (i) Convergent services, (ii) Mobile-only services,
(iii) Fixed-only services and (iv) IT & Integration Services
(see definitions). Retail Services (B2C+B2B) revenues include all
revenues of a given scope excluding revenues from wholesale
services, equipment sales and other revenues (see definitions).
Performance indicators
Fixed retail accesses: number of fixed broadband
accesses (xDSL (ADSL and VDSL), FTTx, cable, Fixed-4G (fLTE) and
other broadband accesses (satellite, Wimax and others)) and fixed
narrowband accesses (mainly PSTN) and payphones.
Fixed wholesale accesses: number of fixed
broadband and narrowband wholesale accesses operated by Orange.
Convergence
Convergent services: customer base and revenues
from B2C Convergent retail offers, excluding equipment sales (see
definition) defined as an offer combining at least a broadband
access (xDSL, FTTx, cable or Fixed-4G (fLTE) with cell-lock) and a
mobile voice contract (excluding MVNOs).
Convergent ARPO: average quarterly revenues per
convergent offer (ARPO) calculated by dividing revenues from retail
Convergent services offers invoiced to B2C customers generated over
the past three months (excluding IFRS 15 adjustments) by the
weighted average number of retail Convergent offers over the same
period. ARPO is expressed by monthly revenues per convergent
offer.
Mobile-only services
Mobile-only services: revenues from mobile
offers (mainly outgoing calls: voice, SMS and data) invoiced to
retail customers, excluding convergent services and equipment sales
(see definitions). The customer base includes customers with a
contract excluding retail convergence, machine-to-machine contracts
and prepaid cards.
Mobile-only ARPO: average quarterly revenues
from Mobile-only (ARPO) calculated by dividing revenues from
Mobile-only retail services (excluding machine-to-machine and IFRS
15 adjustments) generated over the past three months by the
weighted average of Mobile-only customers (excluding
machine-to-machine) over the same period. The ARPO is expressed as
monthly revenues per Mobile-only customer.
Fixed-only services
Fixed-only services: revenues from fixed retail
offers, excluding B2C convergent offers and equipment sales (see
definitions). It includes (i) fixed narrowband services
(conventional fixed telephony), (ii) fixed broadband services, and
(iii) business solutions and networks (with the exception of
France, for which essential business solutions and networks are
supported by Enterprise). For the Enterprise segment, Fixed-only
service revenues include sales of network equipment related to the
operation of voice and data services. The customer base consists of
fixed narrowband and fixed broadband customers, excluding retail
convergence customers.
Fixed-only Broadband ARPO: average quarterly
revenues from Fixed-only Broadband (ARPO) calculated by dividing
the revenue from Fixed-only Broadband retail services (excluding
IFRS 15 adjustments) generated over the past three months by the
weighted average of Fixed-only Broadband customers over the same
period. ARPO is expressed as monthly revenues per Fixed-only
Broadband customer.
IT &
Integration
Services
IT & Integration Services: revenues from
unified communication and collaboration services (Local Area
Network and telephony, advising, integration and project
management), hosting and infrastructure services (including Cloud
Computing), applications services (customer relations management
and other applications services), security services, video
conferencing offers, machine-to-machine services (excluded
connectivity) as well as sales of equipment related to the above
products and services.
Wholesale
Wholesale: revenues from other carriers consists
of (i) mobile services to other carriers including incoming
traffic, visitor roaming, network sharing, national roaming and
Mobile Virtual Network Operators (MVNOs), and (ii) fixed services
to other carriers including national networking, services to
international carriers, high-speed and very high-speed broadband
access (fibre access, unbundling of telephone lines and xDSL access
sales) and the sale of telephone lines on the wholesale market.
Equipment sales
Equipment sales: revenues from all mobile and
fixed equipment sales, excluding (i) equipment sales associated
with the supply of IT & Integration Services, (ii) sales of
network equipment related to the operation of voice and data
services in the Enterprise operating segment, and (iii) equipment
sales to dealers and brokers.
Other revenues
Other revenues: revenues including (i) equipment
sales to brokers and dealers, (ii) portal, (iii) on-line
advertising revenues, (iv) corporate transversal business line
activities, and (v) other miscellaneous revenues.
1 Unless otherwise stated, the changes presented in
this press release are on a comparable basis
2 Services invoiced to customers (B2C + B2B). See
definition in the attached glossary3 On the defined scope of
13.8 billion euros, corresponding to the Group’s indirect
costs in 2019 excluding (i) Africa & Middle East and Mobile
Financial Services and (ii) labor expenses, other network expenses
and IT expenses for Enterprise IT & Integration Services
4 Totem is the European company within the Orange
group that owns and manages the passive mobile infrastructure
portfolio for telecommunication towers (initially in France and
Spain). It began operating in late 2021. Since 1 January 2022,
Totem has been presented as a new business segment.
- PR_Orange_Q3_2022_Results_EN_251022
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