Orange booked a EUR1.84 billion charge on its full year earnings this morning, resulting in a EUR3 billion decline in net income from a year ago.

Net income in 2012 fell to EUR820 million from EUR3.8 billion a year earlier; full-year sales were down 2.7 per cent to EUR43.5 billion.

The impairment charge included write-downs at struggling Orange subsidiaries in Poland (- EUR889 million), Egypt (- EUR400 million) and Romania (- EUR359 million).

There was also a 5 per cent sales decline in Orange’s home (and largest) market of France in a period that was characterised by intense domestic competition triggered by the launch of low-cost rival Free Mobile at the start of 2012.

“The economic situation and the continued price war in most European countries necessitated an acceleration in the group’s transformation programme,” commented CEO Stéphane Richard.

Richard said that such measures had allowed the firm to achieve its financial targets – notably an operational cash flow of EUR8 billion – despite a “particularly turbulent 2012.”

The group has maintained its cash flow target of EUR7 billion for 2013.

Looking ahead, Richard said that “the strengthening of our mobile offers will be bolstered by a more marked distinction between low-cost and higher-value models, providing customers with an unparalleled service, especially in the high-speed broadband segment.”

Orange served 230.7 million customers at 31 December 2012, an increase of 3 per cent year on year (+6.8 million net additions). The mobile base was up 4.5 per cent to 172.4 million.