Telecom operator Orange posted revenue of €10,274 million or $12,142 million (–0.5 percent) in Q3 2017, despite the roaming tariff cut in Europe.
The marginal decrease in the third quarter revenue of Orange was due to poor performance in Africa and the Middle East region and the enterprise business.
Orange generated revenue of €4,529 million (+0.2 percent) in France, €2,789 million (+4.5 percent) in Europe, €1,371 million (+6.4 %) in Spain, €661 million (+0.6 %) in Poland, €316 million (+1.7 %) in Belgium & Luxembourg, €447 million (+7.3 %) in Central European countries, €1,264 million (–7.8 %) in Africa & Middle East and €1,778 million (–1.2 %) from Enterprise business.
Orange posted adjusted EBITDA of €3,622 million (+0.7 percent) with telecom services bringing €3,638 million (+1.1 percent).
The increase in adjusted EBITDA from telecom activities in the third quarter of 2017 at €82 million on a comparable basis was due to revenue growth of €95 million.
Orange Opex
Orange has managed to limit the increase in operating costs (Opex) to €13 million. The fall in certain other operating costs such as interconnection charges, other networks and IT expenses, general and administrative expenses, operating taxes and levies and personnel expenses, offset the increase in content costs and the purchase of client equipment. Personnel expenses fell 2.7 percent, reflecting the lower average number of full-time employees.
Stephane Richard, chairman and CEO of the Orange Group, said: “This quarter demonstrates very good momentum at Orange, supported more than ever by investment in customer experience and our networks.”
Orange Capex
Capex of Orange rose 2 percent to €4.873 billion euros in the first nine months of 2017. Capex for telecom activities at €4.836 billion rose 1.2 percent and the ratio of Capex for telecom activities to revenues was 15.8 percent.
Orange’s investments in fibre increased 6 percent, most notably in France, Spain and Poland. Orange said its high-speed broadband connectivity reaches 24.6 million (+46 percent) households across the Group’s footprint at 30 September 2017. Orange’s broadband connected 11.3 million homes in Spain, 8.4 million homes in France, 2.3 million homes in Romania and 2.2 million homes in Poland.
The 43 percent increase in investment in high-speed mobile services was due to the accelerated rollout in the Africa & Middle East and France.
Orange’s 4G covered 93.8 percent of the population in France, 94.6 percent in Spain, 99.8 percent in Poland, 99.6 percent in Belgium, 90.9 percent in Romania, 83 percent in Slovakia, and 98 percent in Moldova.
Orange’s investments focused on improving service quality in public spaces and on public transport in France and Spain.
Orange enhanced 4G investment in the Africa & Middle East, particularly in Morocco, Egypt, Cote d’Ivoire and Senegal.
Orange optimized its investment in customer equipment as the development of convergent offers for cable in Belgium was offset by optimising the costs of Livebox and set-top boxes in France.
