Orange shows resilience in face of health crisis - Mobile World Live

Orange shows resilience in face of health crisis

29 OCT 2020

Orange revenue remained flat in the third quarter, as momentum in home market France, along with Africa and the Middle East, offset declines in roaming and equipment sales.

In a statement, Orange said revenue stood at €10.6 billion (up a marginal 0.8 per cent year-on-year), as its performance was boosted by its commercial operations, wholesale and convergence play. Roaming and equipment sales were hit by the ongoing Covid-19 (coronavirus) health crisis.

Home market France, as well as Africa and the Middle East were bright spots, with revenue growing 3.1 per cent and 5.1 per cent respectively, offsetting a 3.7 per cent decline in the rest of Europe. In France, Orange was boosted by joint financing of its fibre networks with other operators.

The company blamed a reduction in roaming accounts for the Europe decline, along with a drop in retail. Revenue in Spain was particularly impacted, falling 5.6 per cent.

In Africa and the Middle East, it posted revenue of €1.5 billion, due to a surge in mobile data, as its 4G customer base increased 37 per cent to 30.9 million.

Orange Money also grew, with revenue up 27.1 per cent as its customer based surpassed 20 million.

The company did not provide a net profit figure for the period. In total, it ended the quarter with 211.9 million customers, up 2.5 per cent.

Payout
Stephane Richard, CEO (pictured), said Orange had demonstrated resilience in all of its market in the face of the health crisis, adding it was in line with its financial objectives for the year and restoring dividends to shareholders.

“This strong performance allows us to express our confidence in the future by proposing to the board, that has given its approval, a return to a dividend per share of €70 cents in respect of the 2020 year.”

“An increased interim dividend payment per share of €40 cents will also be paid out this year,” Richard added.

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Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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