Orange Q3 revenue up 1.8%
October 24, 2023
Orange has reported that revenues for Q3 2023 were €10.99 billion, an increase of 1.8 per cent, or €194 million, year on year (compared with +2.6 per cent in Q2 and +2 per cent in H1). Revenue growth in the quarter was driven by retail services, which grew by 3.8 per cent, or €304 million (+4.3 per cent in Q2 and +3.6 per cent in H1). This increase, in absolute terms, was more than double the decline in revenues from wholesale services, which continued to decrease, falling 6.7 per cent or -€123 million (-4.1 per cent in Q2 and -5.9 per cent in H1).
In France, continued growth in retail services excluding PSTN (+3.4 per cent) and in mobile equipment sales (+3 per cent) offset the anticipated decline in wholesale services revenues. Revenues thus continued their improvement, falling -0.5 per cent (-1.3 per cent in Q2 and -1.8 per cent in Q1).
In Europe, revenues from retail services continued to grow, up 2.3 per cent, thanks to the value strategy and in spite of an unfavorable baseline effect related to progressive price increases during 2022.
Africa & Middle East continued to post very strong growth of 12.2 per cent, driven by double-digit increases in its four growth engines (+17.8 per cent for mobile data, +17 per cent for fixed broadband, +28.2 per cent for Orange Money and +20.3 per cent for B2B across the board).
Growth in IT & Integration services revenues in the Enterprise sector accelerated to 9.3 per cent (+8.8 per cent in Q2 and +7.1 per cent in H1) and more than offset the structural decline in the Voice and Data legacy businesses. Enterprise revenues increased 0.6 per cent, reflecting stable mobile revenues, with the growth in services being offset by the decrease in equipment sales.
In terms of commercial performance, the Group said it maintained its leadership position in convergence, with 11.9 million convergent customers Group-wide (+1 per cent), as well as its commercial momentum in mobile contracts and very high-speed fixed broadband accesses. Mobile services had 250.9 million accesses (+4.2 per cent), including 100.8 million contracts (+9 per cent). Fixed services totaled 44.8 million accesses (-2.9 per cent), including 16 million very high-speed broadband accesses which continued to grow strongly (+12.8 per cent). Fixed narrowband accesses continued their structural decline (-14.3 per cent).
Commenting on the publication of these results, Christel Heydemann, Chief Executive Officer of the Orange Group, said: “In an unstable global environment, we have once again demonstrated our ability to execute our ‘Lead the future’ strategic plan, giving us confidence that we are on track to achieve our ambitions for 2025.
In France and Europe, the quarterly results in retail services continue to demonstrate a positive momentum that is driven by our value strategy, helped by the price increases we are implementing with the utmost care. In Spain, our discussions with regard to the merger with MásMóvil are continuing with a view to securing European Commission approval by the end of this year.
Africa and the Middle East continue their excellent performance driving the Group’s growth, with revenues increasing by over 12 per cent and ten countries recording double-digit growth.
In the Enterprise market, rapid growth in IT&IS revenues of more than 9 per cent is offsetting the decline in our historical activities, while Orange Business continues its transformation.
Finally, we are maintaining our drive to improve efficiency through the execution of our cost-cutting plan, accelerating EBITDAaL growth in the third quarter (+1.4 per cent vs +1 per cent in the second quarter).
On the strength of these results, for which I would like to warmly thank all the Group’s teams, we are confirming our objectives for 2023. Together, we continue to build and strengthen the Orange Group, ensuring its competitiveness with confidence and determination.”