Orange Q1 revenue up 2.1%
April 24, 2024
Orange has reported Q1 group revenues rose 2.1 per cent compared with the first quarter of 2023 (+€201 million) thanks to growth in retail services (+3.2 per cent or +€232 million ) and a smaller decline in wholesale services (-4.1 per cent or -€62 million), mainly related to higher unbundling rates in France.
Commenting on the results, Christel Heydemann, Orange’s Chief Executive Officer, said: “Orange has made a very good start to the year, marked by the completion of the deal with MásMóvil to create MasOrange, creating the leading operator in Spain in terms of customer numbers. This is a major step forward in the execution of the ‘Lead the Future’ plan and for the Group’s development in Europe.
“In the first quarter, Group revenues and EBITDAaL accelerated, rising 2.1 per cent and 2.3 per cent respectively, in line with this year’s objectives as set out in our strategic plan. In France, revenue growth was driven by retail services, underpinned by a value-oriented strategy that delivered increases across all ARPOs. In the B2B market, Orange Business revenues were stable while those of IT and Integration services, Orange Cyberdefense in particular, grew. Orange Business continues to execute its transformation plan with several important milestones achieved this quarter, notably the implementation of the cost reduction plan. Driven by its robust growth drivers, the Africa & Middle East region maintained its strong momentum with double-digit revenue growth for the fourth consecutive quarter. I would like to thank all our colleagues for their dedication and trust. Orange continues to evolve to be efficient across all its activities and be among the sector’s global leaders,” added Heydemann.
Revenue highlights
- Africa & Middle East is the main contributor to this growth, with revenues rising strongly (+11.1 per cent or +€185 million) lead by a robust performance in voice and double-digit increases in its four growth engines (+15.7 per cent in mobile data, +20.6 per cent in fixed broadband, +23.5 per cent at Orange Money and +14.1 per cent in B2B across all activities), and this despite the devaluation of the Egyptian pound.
- Revenues in France increased 0.8 per cent (+€35 million) thanks to the growth in retail services excluding PSTN (+3 per cent), in line with the ‘Lead the Future’ target of growth between 2 per cent and 4 per cent, and to a smaller decline in wholesale (-4.2 per cent) due to the higher unbundling rate applied from January 1st 2024.
- Europe declined (-2 per cent or -€35 million) due to a reduction in low-margin activities, offset partially by the continued growth of retail services excluding IT and Integration services (+0.9 per cent).
- The slight decrease in Orange Business revenues (-0.3 per cent or -€6 million) was due to the decline in fixed voice revenues (-8.7 per cent or -€72 million), which was almost offset by accelerated growth in IT and Integration services revenues (+7.5 per cent or +€65 million), notably driven by Orange Cyberdefense (+15.3 per cent or +€39 million).
- In terms of commercial performance, the Group maintained its leadership position in convergence, with 9.1 million convergent customers (+1.9 per cent), as well as its commercial momentum in mobile contracts and very high-speed fixed broadband accesses. Mobile services had 242.6 million accesses worldwide (+7 per cent) including 90.7 million contracts (+12.3 per cent). Fixed services had 39.2 million accesses worldwide (-3.2 per cent) of which 13.3 million were very high-speed broadband accesses, an area that continued to show strong growth (+14.4 per cent). Fixed narrowband accesses continued their decline (-13.2 per cent).