Press release
Paris, 24 October 2024
Financial results at 30 September 2024
Strong third-quarter results, 2024 financial targets confirmed
- Growth in retail services in France and Europe
- Outstanding performance in Africa & Middle East
| In millions of euros | 3Q 2024 | change comparable basis | change historical basis | 9M 2024 | change
comparable basis | change historical basis | ||
| Revenues | 9,995 | 1.6 % | 1.0 % | 29,834 | 1.5 % | 2.0 % | ||
| EBITDAaL | 3,345 | 2.7 % | 2.3 % | 8,857 | 2.6 % | 3.2 % | ||
| eCAPEX (excluding licenses) | 1,359 | (2.5)% | (14.9)% | 4,445 | 0.8 % | (6.4)% | ||
| o/w excluding Spain | 1,359 | (2.5)% | (3.3)% | 4,279 | 0.9 % | 1.6 % | ||
| o/w Spain | - | - | - | 166 | (2.1)% | (69.2)% | ||
| EBITDAaL - eCAPEX excluding Spain | 1,987 | 6.6 % | 6.6 % | 4,577 | 4.2 % | 4.7 % |
"I would like to highlight the remarkable work of our teams over this quarter, particularly during the Paris 2024 Olympic and Paralympic Games. It is a source of enormous pride for all of us to have successfully connected this amazing event with more than 3 billion spectators around the world.
Our third-quarter results confirm our successful execution of the Lead the Future strategic plan. Our revenue growth of 1.6% and EBITDAaL growth of 2.7% are in line with the Group's guidance. These solid results are driven by excellent sales momentum and growth in retail services across all geographies.
In France, Orange is reaffirming and accelerating its leadership position with growing revenues, thanks to a balanced and disciplined volume/value commercial strategy. This can be seen in the 2.8%1 growth in retail services and a marketing strategy focused on convergence which is the key to value creation.
Africa and the Middle East again delivered a very good performance with growth of 10.5%. Our innovative Max-It multi-service digital platform is attracting ever more users. Orange's activities are a genuine lever for economic development for Africa, progress from which we also benefit.
The strong third-quarter results demonstrate the soundness of our strategy, the great competence of our teams and the role we can play as our customers' trusted operator.”
Orange group revenues rose 1.6% compared with the third quarter of 20232 (+153 million euros) thanks to growth in retail services (+2.5% or +185 million euros) and a smaller decline in wholesale services (-3.3% or -51 million euros), mainly related to higher unbundling and civil engineering rates in France in the first quarter.
- Africa & Middle East is the main contributor to this growth, with revenues rising +10.5% (+182 million euros), driven by a robust performance in voice as well as increases from its four growth engines (+18.3% in Mobile data, +17.2% in Fixed broadband, +20.7% for Orange Money and +5.8% in B2B across all activities).
- Revenues in France increased 1.3% (+59 million euros) thanks to faster growth in retail services excluding PSTN3 (+2.8%), and a smaller decline in wholesale services
(-1.9%).
- Europe declined (-2.1% or -38 million euros) due to wholesale services (- 15.5% or -37 million euros) and other low-margin activities, while retail services grew 1.6% (+20 million euros).
- The decrease in Orange Business revenues (-2.6% or -50 million euros) was again due to the decline in Fixed-only revenues (-7.1% or -56 million euros). Revenue growth for Orange Cyberdefense was dynamic (+9.7%), while IT and integration services remained stable (+0.5% or +4 million euros) in an IT market under pressure.
- In terms of commercial performance, the Group maintained its leadership position in convergence in Europe (including France), with a total of 9.1 million convergent customers (+1.0%), as well as its commercial momentum in mobile contracts and very high-speed fixed broadband accesses. Mobile services had 253.0 million accesses worldwide (+8.5%) including 94.8 million contracts (+11.7%). Fixed services had 38.7 million accesses worldwide (-3.0%) of which 14.0 million were very high-speed broadband accesses, an area of continued solid growth (+13.4%).
In line with the target of slight growth in 2024, and thanks to a solid performance in retail services, Group EBITDAaL for the third quarter increased +2.7% to 3,345 million euros (following increases of +2.6% in 2Q and +2.3% in 1Q). EBITDAaL from telecom activities grew to 3,370 million euros (+2.4%).
eCAPEX amounted to 1,359 million euros in the third quarter of 2024, down -2.5% year on year. eCAPEX for telecom activities as a percentage of revenues was 13.6%, in line with the objective of around 15% in 2024. At 30 September 2024, the number of households connectable to FTTH reached 58.7 million excluding Spain (+10.1%), and the FTTH customer base was 13.0 million (+14.2%).
Financial objectives
The Group can therefore confirm its financial targets for 20244:
- Low single-digit growth in EBITDAaL
- Discipline on eCAPEX
- Organic cash flow from telecom activities of at least 3.3 billion euros
- A ratio of net debt/EBITDAaL from telecom activities unchanged at about 2x in the medium term
- On 5 December 2024, Orange will pay an interim dividend in cash of 0.30 euros per share for 2024. Payment of a dividend of 0.75 euros per share in respect of the 2024 fiscal year will be proposed to the Shareholders' Meeting in 2025.
The Board of Directors of Orange SA met on 23 October 2024 and reviewed the consolidated financial results at 30 September 2024.
More detailed information on the Group's financial results and performance indicators is available on the Orange website www.orange.com/en/finance/investors/consolidated-results.
Review by operating segment
France
| In millions of euros | 3Q 2024 | change comparable basis | change historical basis | 9M 2024 | change comparable basis | change historical basis | ||
| Revenues | 4,496 | 1.3 % | 1.3 % | 13,231 | 0.8 % | 0.8 % | ||
| Retail services (B2C+B2B) | 2,847 | 1.6 % | 1.5 % | 8,466 | 1.5 % | 1.5 % | ||
| Convergence | 1,333 | 4.6 % | 4.3 % | 3,933 | 4.6 % | 4.3 % | ||
| Mobile-only | 589 | (0.8)% | (0.6)% | 1,765 | (0.7)% | (0.5)% | ||
| Fixed-only | 925 | (0.9)% | (0.9)% | 2,767 | (1.1)% | (1.1)% | ||
| Wholesale | 1,110 | (1.9)% | (1.9)% | 3,256 | (3.9)% | (3.9)% | ||
| Equipment sales | 359 | 1.5 % | 2.7 % | 980 | 3.6 % | 5.0 % | ||
| Other revenues | 179 | 19.9 % | 16.7 % | 530 | 17.3 % | 14.2 % |
With quarterly revenues of 4,496 million euros, France recorded growth of 1.3% year on year (+59 million euros) thanks to the increase in retail services (+1.6% or +45 million euros) and other revenues (+19.9% or +30 million euros). The decline in wholesale services (-1.9% or - 21 million euros) continued, albeit at a slower pace, mainly due to the seasonal nature of visitor roaming. The growth in retail services excluding fixed-only narrowband services (PSTN) was 2.8% (+74 million euros), supported by a good commercial performance.
France continued to improve its performance thanks to a targeted and disciplined sales strategy. France capitalized on the strength of its customer base, the recognized quality of its network, as evidenced by the success of the Olympic Games, and its market-leading Net Promoter Score.
Mobile net additions for the third quarter were +83,0005, and the churn rate remained moderate (13.8%). Fixed broadband net additions in the third quarter resumed growth at +6,000, with Fiber retaining its excellent momentum (+259,000) and fixed ARPO on the rise. Convergent net additions were slightly down (-14,000), but this was more than offset by a strong increase in convergent ARPO which rose to 77.7 euros (up 3.9 euros in a year), leading to growth in convergent services of 4.6%. At 30 September 2024, 39.5 million households were connectable to Orange Fiber, representing 90% of French households.
The target of maintaining stable EBITDAaL in France in 2024 is confirmed.
Europe
| In millions of euros | 3Q 2024 | change comparable basis | change historical basis | 9M 2024 | change comparable basis | change historical basis | ||
| Revenues | 1,744 | (2.1)% | (0.3)% | 5,212 | (2.1)% | 4.7 % | ||
| Retail services (B2C+B2B) | 1,274 | 1.6 % | 0.4 % | 3,777 | 0.5 % | 8.9 % | ||
| Convergence | 361 | 6.8 % | 4.8 % | 1,060 | 7.0 % | 22.7 % | ||
| Mobile-only | 556 | (0.0)% | 1.1 % | 1,639 | (0.2)% | 1.8 % | ||
| Fixed-only | 247 | (3.1)% | (8.6)% | 743 | (3.8)% | 13.6 % | ||
| IT & Integration services | 110 | 4.4 % | 6.1 % | 336 | (4.8)% | (1.7)% | ||
| Wholesale | 204 | (15.5)% | (14.0)% | 612 | (12.0)% | (8.8)% | ||
| Equipment sales | 237 | (5.3)% | (3.6)% | 718 | (3.9)% | (0.4)% | ||
| Other revenues | 30 | (17.9)% | - | 105 | (15.0)% | (9.8)% |
Revenues for Europe decreased 2.1% (-38 million euros) in the third quarter because of the decline in wholesale services (-15.5% or -37 million euros) following the regulatory decrease in call termination rates, which had no effect on EBITDAaL. Accelerated growth in retail services (+1.6% or +20 million euros) was offset by the decline in other low-margin activities such as equipment sales (-5.3% or -13 million euros) and other revenues (-17.9% or -7 million euros) related in particular to lower energy resale prices in Poland. Growth in retail services excluding IT and Integration services (+1.3%) was 0.2 points higher than in the second quarter (+1.1%). IT and Integration services grew 4.4%.
The good performance of Convergence (+6.8%) benefited from price increases and growth in the Fixed broadband customer base, which rose to nearly 3.6 million FTTH and cable customers, up 9.9% year on year.
Declines in Mobile and Fixed broadband churn, as well as net additions at an exceptional level of +151,000 in Mobile (primarily B2C), +63,000 in Fiber and +9,000 in very high-speed Fixed broadband reflect the excellent commercial performance.
The forecast of low-to-mid single digit EBITDAaL growth for Europe in 2024 is confirmed.
Africa & Middle East
| In millions of euros | 3Q 2024 | change comparable basis | change historical basis | 9M 2024 | change comparable basis | change historical basis | ||
| Revenues | 1,918 | 10.5 % | 5.7 % | 5,660 | 10.6 % | 7.0 % | ||
| Retail services (B2C+B2B) | 1,732 | 11.3 % | 7.3 % | 5,105 | 11.6 % | 8.7 % | ||
| Mobile-only | 1,480 | 11.4 % | 7.2 % | 4,352 | 10.9 % | 7.9 % | ||
| Fixed-only | 239 | 13.6 % | 10.0 % | 703 | 14.6 % | 12.0 % | ||
| IT & Integration services | 13 | (23.3)% | (24.9)% | 50 | 32.1 % | 30.4 % | ||
| Wholesale | 154 | (0.4)% | (10.8)% | 456 | 0.2 % | (8.1)% | ||
| Equipment sales | 23 | 22.4 % | 11.8 % | 69 | 15.1 % | 8.6 % | ||
| Other revenues | 9 | 52.2 % | 20.1 % | 29 | 14.7 % | 0.2 % |
Africa & Middle East revenues rose strongly in the third quarter (+182 million euros), with double-digit growth (+10.5%) for the sixth consecutive quarter. Africa & Middle East also posted outstanding growth on a historical basis with revenues up 5.7% in the third quarter.
This performance was underpinned by the continued rapid growth in retail services (+11.3%) thanks to increases from the four growth engines of Mobile data (+18.3%), which accelerated with seven countries up more than 20%, Fixed broadband (+17.2%), Orange Money (+20.7%) and B2B across all activities (+5.8%).
The Mobile customer base reached 160.1 million, a year-on-year increase of 8.2%, with accelerated growth in the 4G customer base (+26.1%) and a +3.6% increase in average Mobile ARPO in the third quarter. The fixed broadband customer base rose 17.8% to 3.8 million. Lastly, Orange Money had 37.1 million active customers, up 17.6%.
The target of double-digit EBITDAaL growth for Africa & Middle East in 2024 is confirmed.
Orange Business
| In millions of euros | 3Q 2024 | change comparable basis | change historical basis | 9M 2024 | change comparable basis | change historical basis | ||
| Revenues | 1,860 | (2.6)% | (2.2)% | 5,779 | (1.4)% | (1.1)% | ||
| Fixed-only | 733 | (7.1)% | (7.0)% | 2,235 | (7.9)% | (8.0)% | ||
| Voice | 189 | (11.6)% | (11.5)% | 585 | (13.6)% | (13.6)% | ||
| Data | 544 | (5.4)% | (5.4)% | 1,650 | (5.7)% | (5.8)% | ||
| IT & Integration services | 898 | 0.5 % | 1.3 % | 2,812 | 4.2 % | 4.9 % | ||
| Mobile | 229 | 0.8 % | 0.8 % | 731 | (0.6)% | (0.6)% | ||
| Mobile-only | 176 | 1.9 % | 1.9 % | 528 | 1.3 % | 1.3 % | ||
| Wholesale | 10 | (2.0)% | (2.0)% | 30 | (2.0)% | (2.0)% | ||
| Equipment sales | 43 | (2.7)% | (2.7)% | 173 | (5.8)% | (5.8)% |
Revenues for the Orange Business segment were 1,860 million euros in the third quarter of 2024, down 2.6% (-50 million euros) due to a decline in Fixed-only revenues (-7.1% or -56 million euros), primarily related to the anticipated decline in voice revenues (-11.6%).
Revenue growth was dynamic for Orange Cyberdefense (+9.7%), while IT and Integration services were stable (+0.5% or +4 million euros) in an IT market under pressure.
Orange Cyberdefense's expertise in particular has been recognized by ISG, IDC and Omdia.
The voluntary departure plan is currently being implemented.
The Orange Business transformation plan is in line with the objective for the year of halving the decline in EBITDAaL in 2024 compared to the previous year.
TOTEM
| In millions of euros | 3Q 2024 | change comparable basis | change historical basis | 9M 2024 | change comparable basis | change historical basis | ||
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