Press release Orange: Financial results at 31 December 2023 - “Lead
the Future” plan on track
Press releaseParis,
15 February 2024
Financial results at 31 December 2023
“Lead the Future” plan on track
2023 targets achieved: acceleration of EBITDAaL
growth to 1.3% and organic cash flow to 3.66 billion euros
2024–2025 trajectory confirmed
|
In millions of euros |
|
4Q 2023 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2023 |
changecomparablebasis |
changehistoricalbasis |
|
Revenues |
|
11,578 |
1.6 % |
2.0 % |
|
44,122 |
1.8 % |
1.5 % |
|
EBITDAaL |
|
3,544 |
2.0 % |
2.8 % |
|
13,035 |
1.3 % |
0.6 % |
|
Operating Income |
|
|
|
|
|
4,969 |
6.6 % |
3.5 % |
|
Consolidated net income |
|
|
|
|
|
2,892 |
|
10.5 % |
|
eCAPEX (excluding licenses) |
|
2,065 |
(7.9)% |
(7.3)% |
|
6,815 |
(6.7)% |
(7.5)% |
|
EBITDAaL - eCAPEX |
|
1,480 |
20.0 % |
21.2 % |
|
6,220 |
11.7 % |
11.2 % |
|
Organic cash flow (telecom activities) |
|
|
|
|
|
3,661 |
|
19.7 % |
|
Free cash flow all-in (telecom activities) |
|
|
|
|
|
2,940 |
|
59.4% |
|
Return On Capital Employed (ROCE) (telecom
activities) |
|
|
|
|
|
6.7% |
|
0.8 bp |
|
Earnings per share (EPS) in euro |
|
|
|
|
|
0.85 |
|
16.4 % |
Commenting on these results, Christel Heydemann,
Orange’s Chief Executive Officer said:
“One year on from the announcement of our “Lead the
Future” strategic plan, we have achieved all our financial targets
for 2023. These results are a testament to our ability to execute
and advance our major strategic projects.
Thanks to our work on pricing, our quality of
service and our efficiency program, revenues and EBITDAaL grew 1.8%
and 1.3% respectively, accelerating steadily throughout the year.
As expected, in France, EBITDAaL improved markedly in the second
half as our value strategy delivered its full effects. This
strategy fueled growth in the consumer market supported by the
quality of our network which has been ranked the best mobile
network in France thirteen consecutive times by Arcep. Europe
turned in a solid performance – driven by Spain which delivered
year-on-year growth for the first time since 2018 – with a strong
increase in EBITDAaL and with rankings amongst the best in terms of
quality of service in each of its markets. Africa & Middle East
posted strong growth in terms of both revenues and EBITDAaL,
supported by mobile data, Orange Money and B2B activities, thus
demonstrating its dynamism.
We continued to streamline our portfolio with the
disposal of OCS and Orange Studio at the end of January. We pursued
our strategy of consolidation in Europe with the integration of
recent acquisitions in Belgium and Romania which have considerably
strengthened our position in these markets. As for our proposed
joint venture with Masmovil in Spain, we remain confident in the
outcome of the approval process currently underway by the European
Commission, with a decision expected by 22 February. Orange
Business is progressing its transformation plan, delivering
encouraging initial results with an improvement in the EBITDAaL
trend.
Based on these results, we are fully confident in
our ability to achieve all the 2024/2025 targets set out in our
Lead the Future plan. I would like to thank all our colleagues for
their trust and determination.”
Revenues for full-year 2023 were
44,122 million euros, an increase of 1.8%, or 790 million
euros, year on year1. Revenue growth was driven by retail
services2, which grew 3.5% or 1,109 million euros, and
equipment sales, which rose 7.3% or 238 million euros. This
performance offset by more than two times the decrease in revenues
from wholesale services, which continued their decline failing 6.5%
or -474 million euros.
- In France, the full
impact of our value strategy was felt in the second half with
growth in retail services excluding PSTN of 3.0% year on year
partially offsetting the expected decrease in revenues from
wholesale services of 8.5%.
- In Europe, growth
continued at 2.2% thanks to the performance of Poland (+3.9%) and
Belgium & Luxembourg (+4.6%). Revenues from retail services
again grew rising 3.0%. Growth in IT & Integration services
(+16.0%) and equipment sales (+11.1%) offset the decrease in
revenues from wholesale services (-8.0%).
- Africa & Middle
East continued its very good performance (+11.4%) driven
by double-digit increases for the year from its four growth engines
(+17.7% for mobile data, +16.7% for fixed broadband, +25.8% for
Orange Money and +16.4% for B2B across the board).
- Orange Business
recorded stable revenues (+0.2%). Growth in revenues from IT &
Integration services (+6.3%) and Mobile (+2.6%) offset the
structural decline in the Voice and Data legacy businesses
(-6.7%).
- In terms of
commercial performance3, the Group maintained its
leadership position in convergence with
11.9 million convergent customers group-wide (+0.7%), as well
as its commercial momentum in mobile contracts and very high-speed
fixed broadband accesses. Mobile services had
254.0 million accesses (+4.8%), including 103.9 million
contracts (+10.1%). Fixed services had
44.5 million accesses (-2.9%), of which 16.5 million were
very high-speed broadband accesses showing strong growth (+11.9%).
Fixed narrowband accesses continued their structural decline
(-14.4%).
In line with the target for the year,
EBITDAaL reached 13 billion euros, up 1.3% year on
year, steadily accelerating throughout the year to reach +2.0% in
the fourth quarter. The Group value strategy resulted in a smaller
decline in EBITDAaL in France in the second half (-2.2%, compared
with -5.1% in 1H, resulting in a 3.6% decline for the year), with
very good performances once again in Africa & Middle East
(+12.7%), Europe (+5.8%) and, in particular, Spain (+12.2%), and
the beginning of a reversal in the trend at Orange Business
(-15.4%).
Despite the inflationary environment, the
operational efficiency program continued its
trajectory toward achieving its target of 600 million euros in
2025, on a cost base of about 12 billion euros defined at the
end of 2022 and after the integration of VOO. About 300 million
euros of savings were made by the end of 2023, half the projected
savings for the three years. These savings mainly related to the
notable reduction in employees stemming from the French “part-time
for seniors” agreements but also to savings programs in purchasing,
IT, networks and real estate.
eCAPEX was 6,815 million euros, a
sharp reduction of 6.7% (-487 million euros), and represented 15.4%
of revenues, in line with the objectives in the “Lead the Future”
strategic plan. France was the main contributor to this reduction
(-10.2%, or -344 million euros), with the fiber roll-out reaching
maturity, and to Spain (-12.5%, or -107 million euros). At
31 December 2023, Orange had 71.7 million households
connectable to FTTH worldwide (up 10.4% year on year) and an FTTH
customer base of 15.4 million (+12.5%).
Operating income was 4,969 million
euros, an increase of 6.6%, reflecting the growth in EBITDAaL and
the positive base effect due to the impairment of goodwill on the
Romanian acquisition in 2022. This was partially offset by
additional restructuring costs for Orange Bank and Orange Business
and by the increase in provisions for the French “part-time for
seniors” plan, due to the working life extension in the pension
reform law of 2023.
Consolidated net income was 2,892
million euros, an increase of 10.5%, or 275 million euros4,
reflecting operating income, higher financial expenses and lower
income tax.
Year-on-year growth in EBITDAaL, combined with the
marked reduction of eCAPEX, enabled organic cash
flow from telecom activities to reach 3,661 million euros
(+19.7% on a historical basis), in line with the target of at least
3.5 billion euros.
Net financial debt totaled
27.0 billion euros at 31 December 2023, an increase of
1.7 billion euros compared with 2022. The ratio of net
financial debt to EBITDAaL from telecom activities was 2.05x at 31
December 2023 as a result of the acquisition of VOO, in line with
the target of approximately 2x over the medium term. The solid
liquidity position of telecom activities of 14.3 billion euros and
the low cost of debt, which has an average maturity of 7.5 years,
are advantages in the current monetary environment.
Value creation, one pillar of the
“Lead the Future” plan, is demonstrated by the following
three indicators5:
- Free cash
flow all-in6 reached 2.9 billion euros, an increase of 1.1
billion euros.
- Return on
Capital Employed6 (ROCE)
improved substantially, increasing 80 basis points to 6.7%, close
to the target for 2025 of a 100 to 150 basis-point improvement
between 2022 and 2025.
- Earnings
per share (EPS) of 0.85 euros grew more
than 16%.
The Shareholders’ Meeting on 22 May 2024 will
decide on the payment of a dividend for the 2023
fiscal year of 0.72 euros per share (payable in 2024).
Financial
objectives
The Group achieved all its targets for 2023
and confirmed its financial objectives to 2025, as
presented at the Capital Markets Day held on 16 February 2023.7
In 2024, Orange aims to achieve the
following financial targets within the current
perimeter:
- Low single-digit
growth in EBITDAaL
- Discipline on
eCAPEX
- Organic cash flow6
of at least 3.8 billion euros
- Net debt/EBITDAaL
ratio6 unchanged at about 2x in the medium term
- A dividend of 0.75
euros per share (payable in 2025)
For the 2025 fiscal year, in
addition to the targets presented at the Capital Markets Day,
Orange has set a minimum dividend of 0.75 euros per share.
Financial targets after deconsolidation of
Orange Spain:
With regards to the pending decision by the
European Commission, the deconsolidation of Spain does not change
the Group objectives of low single-digit growth in EBITDAaL and
discipline on eCAPEX. Group organic cash flow excluding Orange
Spain will continue to grow, rising more than 300 million euros
between 20238 and 2025 to reach at least 3.3 billion euros in 2024
and 3.5 billion euros in 2025.
Changes in the asset
portfolio
Joint venture with Masmovil in
Spain
At the financial statement date, completion of the
transaction remains subject to the approval of the competent
administrative, regulatory and antitrust authorities, which in the
latter case is expected to be given by 22 February this year, and
to the relevant and/or contractual conditions required for
completion.
Acquisition of Expertime by Orange
Business
In December 2023, Orange Business announced the
acquisition of Expertime, a services company specializing in
Microsoft solutions and recognized for its expertise in apps,
collaborative solutions and Data. Its 165 employees will strengthen
the Microsoft proficiency of the Orange Business teams in the areas
of Public Cloud, Artificial Intelligence and Data. This acquisition
is part of the “Lead the Future” strategic plan and contributes to
Orange Business' ambition to accelerate its growth in digital
services in France and Europe, and to become a network and digital
integrator certified in the best technologies on the market, in
order to support businesses in their digital transformation.
Disposal of OCS and Orange Studio to the
Canal+ Group
In January 2023, Orange and the Canal+ Group
announced that they had signed a memorandum of understanding for
the Canal+ Group to acquire Orange’s stake in OCS, Orange’s pay-TV
arm, and Orange Studio, the film and TV co-production
subsidiary.
Since their founding in 2007 and 2008 respectively,
competition in the audiovisual sector has intensified relentlessly,
particularly for OCS, with the emergence of powerful international
platforms. Through this agreement with the Canal+ Group, Orange’s
longstanding partner and a European player in the creation and
distribution of content, the Group aimed to sustain the long-term
development of these two subsidiaries, while preserving jobs and
the pre-financing of content. Canal+ had been a 33.34% shareholder
of OCS since 2012 and is its leading distributor.
The French Competition Authority approved the
transaction on 12 January 2024 and it was finalized at the end of
January. Following this transaction, the Canal+ Group is the sole
shareholder of both companies.
Sustainability
With regard to the environment,
the Group exceeded its target two years early of a 30% reduction in
Scope 1 and 2 CO2 emissions over the period from 2015 to 2025, with
a decrease in emissions of 37.4% in 2023. The customer handset
recovery program has already achieved its target of 30% by 2025 in
France and is expected to accelerate in Europe.
For digital inclusion, the number
of beneficiaries of free digital training programs grew 45% in
2023. With 1.8 million people trained cumulatively by the end of
2023, the Group is on track to achieve its target of 2.5 million
people trained between 2021 and 2025.
With regard to diversity, the
proportion of women in the management network increased 1
percentage point to 34.1%.
_________________________________________________________________________________
The Board of Directors of Orange SA met on
14 February 2024 and reviewed the consolidated financial
results at 31 December 20239.
More detailed information on the Group’s
financial results and performance indicators is available on the
Orange website www.orange.com/en/consolidated-results.
Review by operating
segment
France
|
In millions of euros |
|
4Q 2023 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2023 |
changecomparablebasis |
changehistoricalbasis |
|
Revenues |
|
4,600 |
(1.9)% |
(1.9)% |
|
17,730 |
(1.4)% |
(1.4)% |
|
Retail services (B2C+B2B) |
|
2,811 |
1.8 % |
1.8 % |
|
11,154 |
1.6 % |
1.6 % |
|
Convergence |
|
1,295 |
4.9 % |
4.9 % |
|
5,065 |
4.3 % |
4.3 % |
|
Mobile-only |
|
590 |
0.7 % |
0.7 % |
|
2,364 |
1.4 % |
1.4 % |
|
Fixed-only |
|
926 |
(1.7)% |
(1.7)% |
|
3,725 |
(1.6)% |
(1.6)% |
|
Wholesale |
|
1,125 |
(10.6)% |
(10.7)% |
|
4,514 |
(8.5)% |
(8.6)% |
|
Equipment sales |
|
460 |
6.6 % |
6.6 % |
|
1,394 |
5.3 % |
5.3 % |
|
Other revenues |
|
204 |
(14.2)% |
(14.2)% |
|
668 |
(10.4)% |
(10.4)% |
|
EBITDAaL |
|
|
|
|
|
6,364 |
(3.6)% |
(4.2)% |
|
EBITDAaL / Revenues |
|
|
|
|
|
35.9 % |
(0.8 pt) |
(1.1 pt) |
|
Operating Income |
|
|
|
|
|
2,967 |
(10.8)% |
(11.7)% |
|
eCAPEX |
|
|
|
|
|
3,039 |
(10.2)% |
(11.4)% |
|
eCAPEX / Revenues |
|
|
|
|
|
17.1 % |
(1.7 pt) |
(1.9 pt) |
Improvement in the EBITDAaL trend in the
second half driven by the value strategy
Annual revenues in France were
down 1.4% year on year to 17,730 million euros due to the expected
decline in wholesale services which fell 8.5% (-419 million euros)
and fixed-only narrowband services (PSTN) down 15.0% (-124 million
euros), which were then partially offset by growth in other retail
services of +3.0% (+303 million euros), driven by our value
strategy.
For the full-year 2023, EBITDAaL was 6,364 million
euros a decrease of 3.6% with, as expected, an inflection in the
second half (-2.2%, versus -5.1% in 1H), thanks to the full effect
of price increases implemented during the first half. The Group’s
value strategy continued to deliver results in the fourth quarter,
fueling growth in revenues from retail services excluding PSTN of
3.1%, in line with the aims of “Lead the Future” and thanks to the
growth of all ARPOs, particularly convergent ARPO which reached
75.2 euros, an increase of 3.3 euros year on year.
From a commercial standpoint, the general market
slowdown since the start of 2023 continued to affect fixed
broadband net additions in the fourth quarter (-30,000), except for
fiber (+267,000). There are now 37.4 million households connectable
to Orange fiber. In mobile, the performance during this quarter was
very positive (+99,00010) and the churn rate remained moderate at
12.1%, despite the slight increase (+1.4 percentage points). The
Net Promoter Score returned to its 2022 level and in 2023, for the
thirteenth consecutive year, the Orange mobile network was ranked
number one by Arcep and either ranked first or joint-first across
all criteria.
This increased the generation of operating cash
flow (EBITDAaL – eCAPEX), which grew 3.4%, thanks to the marked
decrease in eCAPEX (-10.2%) in 2023.
Europe
|
In millions of euros |
|
4Q 2023 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2023 |
changecomparablebasis |
changehistoricalbasis |
|
Revenues |
|
3,105 |
2.3 % |
8.1 % |
|
11,574 |
2.2 % |
5.6 % |
|
Retail services (B2C+B2B) |
|
2,087 |
2.2 % |
9.8 % |
|
7,947 |
3.0 % |
7.6 % |
|
Convergence |
|
804 |
3.4 % |
11.8 % |
|
3,088 |
4.1 % |
9.1 % |
|
Mobile-only |
|
736 |
(0.4)% |
1.4 % |
|
2,932 |
1.4 % |
2.2 % |
|
Fixed-only |
|
366 |
(0.4)% |
19.7 % |
|
1,361 |
(0.4)% |
11.7 % |
|
IT & Integration services |
|
181 |
14.4 % |
20.2 % |
|
565 |
16.0 % |
19.9 % |
|
Wholesale |
|
443 |
(6.8)% |
(5.0)% |
|
1,700 |
(8.0)% |
(7.0)% |
|
Equipment sales |
|
524 |
12.3 % |
15.2 % |
|
1,757 |
11.1 % |
12.7 % |
|
Other revenues |
|
52 |
1.6 % |
1.4 % |
|
170 |
(7.1)% |
(8.9)% |
|
EBITDAaL |
|
|
|
|
|
3,037 |
5.8 % |
9.5 % |
|
EBITDAaL / Revenues |
|
|
|
|
|
26.2 % |
0.9 pt |
0.9 pt |
|
Operating Income |
|
|
|
|
|
770 |
na |
na |
|
eCAPEX |
|
|
|
|
|
1,831 |
(6.9)% |
(2.7)% |
|
eCAPEX / Revenues |
|
|
|
|
|
15.8 % |
(1.5 pt) |
(1.4 pt) |
Growth in EBITDAaL driven by price
increases in retail services
Growth in revenues from
Europe accelerated in the fourth quarter rising
2.3% and resulting in a 2.2% increase for full-year 2023 (+248
million euros). The rise in retail services (+3.0%, or 233
million euros) was driven by the Group’s value strategy and price
increases. The good performance of Convergence (+4.1%, or 121
million euros) benefitted from price increases and growth in the
fixed high-speed broadband customer base (which had almost
7 million FTTH and cable customers at 31 December 2023). The
strong performance of IT & Integration services (+16.0%, or 78
million euros) was driven by Poland (+14.0%, or 46 million euros),
Spain (+41.9%, or 17 million euros) and Romania (+22.5%, or 14
million euros). Equipment sales (+11.1%, or 176 million euros)
reflected the positive commercial momentum in mobile phones. The
decline in wholesale services slowed in the fourth quarter (-6.8%)
resulting in an 8.0% decrease for the full year (-148 million
euros). This was due to the regulatory decrease in call termination
rates and international traffic, both of which had a small impact
on margins.
The growth in revenues and the measures taken to
counter inflationary pressure resulted in an increase in
EBITDAaL of 5.8% (or 165 million euros), mainly
due to double-digit growth in Spain (+12.2%, or 135 million euros),
and to Poland (+2.9%, or 20 million euros).
The decrease in eCAPEX of 6.9%
(-135 million euros) was achieved due to Spain (-12.5%, or -107
million euros) and Poland (-9.5%, or -36 million euros).
In Spain,
revenues increased 1.1%, thanks to growth in
retail services in all four quarters (+1.8% for the year), driven
by Convergence, whose ARPO grew throughout the year (+3.5% in the
last quarter). At the same time, churn continued to decrease
resulting in a 1.3-point decline in the mobile churn rate in the
last quarter (excluding the termination of 57,000 Covid lines11).
In a highly competitive market, Spain sustained its growth focusing
on customer value management combined with a rigorous marketing
policy. Finally, Spain grew in all its B2B segments.
Africa & Middle East
|
In millions of euros |
|
4Q 2023 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2023 |
changecomparablebasis |
changehistoricalbasis |
|
Revenues |
|
1,865 |
12.1 % |
6.2 % |
|
7,152 |
11.4 % |
3.4 % |
|
Retail services (B2C+B2B) |
|
1,658 |
12.4 % |
6.9 % |
|
6,356 |
11.2 % |
4.0 % |
|
Mobile-only |
|
1,424 |
12.1 % |
6.6 % |
|
5,456 |
10.8 % |
3.5 % |
|
Fixed-only |
|
219 |
11.4 % |
6.6 % |
|
847 |
12.6 % |
5.9 % |
|
IT & Integration services |
|
15 |
67.2 % |
66.2 % |
|
53 |
40.6 % |
34.0 % |
|
Wholesale |
|
169 |
11.4 % |
1.4 % |
|
666 |
14.1 % |
0.4 % |
|
Equipment sales |
|
26 |
12.1 % |
5.3 % |
|
90 |
(1.9)% |
(13.2)% |
|
Other revenues |
|
11 |
(6.2)% |
(15.5)% |
|
40 |
23.2 % |
2.8 % |
|
EBITDAaL |
|
|
|
|
|
2,734 |
12.7 % |
5.8 % |
|
EBITDAaL / Revenues |
|
|
|
|
|
38.2 % |
0.4 pt |
0.9 pt |
|
Operating Income |
|
|
|
|
|
1,755 |
10.5 % |
5.4 % |
|
eCAPEX |
|
|
|
|
|
1,248 |
6.5 % |
(1.8)% |
|
eCAPEX / Revenues |
|
|
|
|
|
17.5 % |
(0.8 pt) |
(0.9 pt) |
Acceleration of double-digit EBITDAaL
growth
Africa & Middle East revenues
grew strongly, rising 11.4% (+729 million euros), with growth
of 12.1% in the fourth quarter. All countries grew during the year.
The region continued to demonstrate its agility and dynamism amid
security tensions and currency devaluations in some countries.
This performance was underpinned by the rapid
development of retail services (+11.2%) due to double-digit
increases from the four growth engines, namely mobile data
(+17.7%), fixed broadband (+16.7%), Orange Money (25.8%) and B2B
across the board (+16.4%), with a positive effect on volume and
value.
The mobile customer base reached
149.2 million, a year-on-year increase of 4.3%, with a 5.9%
increase in average mobile ARPO.
At the end of November 2023, Orange launched the
“Max it” app in five countries where Orange operates in Africa
& Middle East. This smartphone services portal brings together
three essential service offers: telecoms functionalities for
managing mobile and fixed lines, all of the Orange Money services,
and content offers (online games, music, TV, videos, news,
ticketing, etc.). The app has already had 10 million downloads.
For the fourth year in a row, Africa & Middle
East recorded double-digit growth in EBITDAaL
(+12.7%), which continued to outpace growth in revenues as a result
of strict cost control. The EBITDAaL margin rose 0.4 points, to
more than 38%.
The EBITDAaL – eCAPEX indicator increased 18.4%
year on year and made a significant contribution to the Group’s
organic cash flow generation.
Orange Business
|
In millions of euros |
|
4Q 2023 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2023 |
changecomparablebasis |
changehistoricalbasis |
|
Revenues |
|
2,081 |
(1.4)% |
(2.6)% |
|
7,927 |
0.2 % |
(0.0)% |
|
Fixed-only |
|
791 |
(6.8)% |
(8.6)% |
|
3,220 |
(6.7)% |
(7.1)% |
|
Voice |
|
213 |
(14.8)% |
(15.9)% |
|
890 |
(12.3)% |
(12.5)% |
|
Data |
|
578 |
(3.5)% |
(5.6)% |
|
2,330 |
(4.3)% |
(4.8)% |
|
IT & Integration services |
|
1,025 |
2.4 % |
1.5 % |
|
3,706 |
6.3 % |
6.2 % |
|
Mobile |
|
265 |
1.9 % |
1.8 % |
|
1,001 |
2.6 % |
2.6 % |
|
Mobile-only |
|
172 |
0.5 % |
0.4 % |
|
693 |
5.1 % |
5.1 % |
|
Wholesale |
|
10 |
(7.4)% |
(7.4)% |
|
41 |
(0.8)% |
(0.8)% |
|
Equipment sales |
|
83 |
6.2 % |
6.2 % |
|
267 |
(2.9)% |
(2.9)% |
|
EBITDAaL |
|
|
|
|
|
679 |
(15.4)% |
(15.5)% |
|
EBITDAaL / Revenues |
|
|
|
|
|
8.6 % |
(1.6 pt) |
(1.6 pt) |
|
Operating Income |
|
|
|
|
|
92 |
(71.4)% |
(71.0)% |
|
eCAPEX |
|
|
|
|
|
296 |
(9.3)% |
(11.0)% |
|
eCAPEX / Revenues |
|
|
|
|
|
3.7 % |
(0.4 pt) |
(0.5 pt) |
Initial improvement in the EBITDAaL trend
before a return to growth in 2025
Revenue for the Orange Business segment reached
7,927 million euros in 2023, with slight growth of 0.2%
(+14 million euros).
The growth in IT & Integration services of 6.3%
(+219 million euros), driven by the double-digit growth of Orange
Cyberdefense (+10.9%), the strong performance of Digital & Data
(+7.2%) and increased Mobile revenues up 2.6% (+26 million euros),
offset the structural decline of -6.7% in fixed Voice and Data
legacy activities (-230 million euros).
The acquisition of Expertime strengthens the
strategy of Orange Business in developing Microsoft solutions and
its expertise in the area of apps, collaborative solutions and
Data.
The simplification of the Orange Business product
portfolio is on track to halve the number of products and services
marketed in the first quarter of 2024.
The 15.4% decrease in EBITDAaL in 2023 is in line
with the objective of reducing the contraction compared to that of
2022 (-18.8% or -21.0% excluding the impact of the employee
shareholding program, which had an adverse effect on EBITDAaL in
2021). Furthermore, the decline in EBITDAaL improved during 2023
from -16.7% in the first half to -14.2% in the second half. Orange
Business is pursuing its objective of turning around EBITDAaL by
2025, and to do so, aims to halve the decline in EBITDAaL in
2024.
The training and retraining plan for key digital
professions (virtualization, Cloud, data, artificial intelligence
and cybersecurity) resulted in 11,408 certifications out of the
20,000 targeted by 2025.
Lastly, a provision was booked in the 2023
financial statements for the voluntary departure plan, to be
implemented in 2024.
Totem
|
In millions of euros |
|
4Q 2023 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2023 |
changecomparablebasis |
changehistoricalbasis |
|
Revenues |
|
174 |
(7.6)% |
(7.6)% |
|
686 |
0.3 % |
0.3 % |
|
Wholesale |
|
174 |
(7.6)% |
(7.6)% |
|
686 |
0.3 % |
0.3 % |
|
Other revenues |
|
- |
- |
- |
|
- |
- |
- |
|
EBITDAaL |
|
|
|
|
|
372 |
0.4 % |
0.4 % |
|
EBITDAaL / Revenues |
|
|
|
|
|
54.2 % |
0.1 pt |
0.1 pt |
|
Operating Income |
|
|
|
|
|
251 |
(0.2)% |
(0.2)% |
|
eCAPEX |
|
|
|
|
|
144 |
1.0 % |
1.0 % |
|
eCAPEX / Revenues |
|
|
|
|
|
20.9 % |
0.1 pt |
0.1 pt |
The revenues of the Totem TowerCo12 reached 686
million euros, an increase of 0.3% (+2 million euros), driven by a
3.6% rise in hosting revenues, which included a 6% increase in
hosting revenues from third-party customers. At the end of 2023,
16.6% of hosting revenues came from external customers.
This change reflects the increase in the number of
sites which totaled 27,292 at 31 December 2023 (+173 sites), with a
tenancy ratio of 1.40 co-tenants per site. This increase of three
basis points compared with the tenancy ratio at the end of 2022 is
in line with the target of 1.5 co-tenants in 2026.
EBITDAaL rose 0.4% (2 million
euros) and eCAPEX increased 1 million euros.
International Carriers & Shared
Services
|
In millions of euros |
|
4Q 2023 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2023 |
changecomparablebasis |
changehistoricalbasis |
|
Revenues |
|
364 |
(6.4)% |
(6.5)% |
|
1,478 |
(3.7)% |
(4.0)% |
|
Wholesale |
|
235 |
(8.8)% |
(9.0)% |
|
982 |
(7.1)% |
(7.3)% |
|
Other revenues |
|
129 |
(1.6)% |
(1.6)% |
|
496 |
3.7 % |
3.4 % |
|
EBITDAaL |
|
|
|
|
|
(30) |
63.8 % |
68.4 % |
|
EBITDAaL / Revenues |
|
|
|
|
|
(2.0)% |
3.4 pt |
4.2 pt |
|
Operating Income |
|
|
|
|
|
(563) |
(17.8)% |
(34.9)% |
|
eCAPEX |
|
|
|
|
|
225 |
(19.0)% |
(19.0)% |
|
eCAPEX / Revenues |
|
|
|
|
|
15.2 % |
(2.9 pt) |
(2.8 pt) |
Wholesale services revenues decreased 8.8% in the
fourth quarter (after falling 11.8% in 3Q) and were down 7.1% for
the full year (-75 million euros), year on year. The decrease in
voice traffic, which is accelerating, was partially offset by
roaming services, Data activities and the construction and sale of
a cable in the Caribbean.
The 3.7% year-on-year increase in other revenues
(+18 million euros) was mainly due to the strong growth in Orange
Marine’s activities.
The EBITDAaL loss was substantially reduced (+53
million euros), thanks to the very good performance of Orange
Marine and lower labor expenses due to departures related to the
French “part-time for seniors” plan in the area of central
functions.
Mobile Financial Services
|
In millions of euros |
|
|
|
|
|
12M 2023 |
changecomparablebasis |
changehistoricalbasis |
|
Net Banking Income (NBI) |
|
|
|
|
|
150 |
29.6 % |
29.6 % |
|
Cost of bank credit risk |
|
|
|
|
|
(63) |
39.5 % |
39.5 % |
|
Operating Income |
|
|
|
|
|
(306) |
(53.1)% |
(53.1)% |
|
eCAPEX |
|
|
|
|
|
33 |
(8.3)% |
(8.3)% |
Mobile Financial Services had 3.3 million
customers at 31 December 2023, including 1.9 million in
Europe (Orange Bank) and 1.3 million in Africa (Orange Bank
Africa), a year-on-year increase of 0.2 million customers.
Operating income includes restructuring costs and
impairment of assets related to the plan to discontinue the
activities of Orange Bank. Orange Bank has embarked on negotiations
with its employee representatives to initiate an employment
protection plan involving about 600 jobs in France. The plan to
cease activities continues following the rejection of the takeover
offer presented in the context of the Florange Law and the end of
the procedure to inform and consult employee representative bodies
on these projects.
Orange Bank maintains the quality of its offering
at a high level. In France, Orange Bank is still ranked number one
among online banks for customer satisfaction by the Trustpilot
review platform and Google Customer Reviews.
In Africa, loan production continued to increase
due to the rise in the value of loans granted. Customer savings
also continue to grow. Technical workshops have begun to prepare
for the launch of the Senegal branch.
Calendar of upcoming events
24 April
2024 -
Publication of First Quarter 2024 financial results
Contacts
|
press: Tom Wrighttom.wright@orange.com Caroline
Celliercaroline.cellier@orange.com |
financial communication: (analysts and investors)Patrice Lambert-de
Diesbachp.lambert@orange.com Louise
Racinelouise.racine@orange.comHong Hai
Vuonghonghai.vuong@orange.comLouis
Celierlouis.celier@orange.com |
Disclaimer
This press release contains forward-looking
statements about Orange’s financial situation, results of
operations and strategy. Although we believe these statements are
based on reasonable assumptions, they are subject to numerous risks
and uncertainties, including matters not yet known to us or not
currently considered material by us, and there can be no assurance
that anticipated events will occur or that the objectives set out
will actually be achieved. More detailed information on the
potential risks that could affect our financial results is included
in the Universal Registration Document filed on 29 March 2023
with the French Financial Markets Authority (AMF) and in the annual
report (Form 20-F) filed on 30 March 2023 with the U.S. Securities
and Exchange Commission. Forward-looking statements speak only as
of the date they are made. Other than as required by law, Orange
does not undertake any obligation to update them in light of new
information or future developments.
Appendix 1: financial key
indicators
Quarterly data
|
In millions of euros |
|
4Q 2023 |
4Q 2022comparablebasis |
4Q 2022historicalbasis |
variationcomparablebasis |
changehistoricalbasis |
|
Revenues |
|
11,578 |
11,395 |
11,351 |
1.6 % |
2.0 % |
|
France |
|
4,600 |
4,690 |
4,691 |
(1.9)% |
(1.9)% |
|
Europe |
|
3,105 |
3,034 |
2,873 |
2.3 % |
8.1 % |
|
Africa & Middle East |
|
1,865 |
1,663 |
1,756 |
12.1 % |
6.2 % |
|
Orange Business |
|
2,081 |
2,110 |
2,136 |
(1.4)% |
(2.6)% |
|
Totem |
|
174 |
188 |
188 |
(7.6)% |
(7.6)% |
|
International Carriers & Shared Services |
|
364 |
389 |
390 |
(6.4)% |
(6.5)% |
|
Intra-Group eliminations |
|
(611) |
(680) |
(683) |
|
|
|
EBITDAaL (1) |
|
3,544 |
3,474 |
3,448 |
2.0 % |
2.8 % |
|
o/w Telecom activities |
|
3,577 |
3,507 |
3,480 |
2.0 % |
2.8 % |
|
As % of revenues |
|
30.9 % |
30.8 % |
30.7 % |
0.1 pt |
0.2 pt |
|
o/w Mobile Financial Services |
|
(33) |
(32) |
(32) |
(0.6)% |
(0.6)% |
|
eCAPEX |
|
2,065 |
2,241 |
2,227 |
(7.9)% |
(7.3)% |
|
o/w Telecom activities |
|
2,061 |
2,225 |
2,212 |
(7.4)% |
(6.8)% |
|
as % of revenues |
|
17.8 % |
19.5 % |
19.5 % |
(1.7 pt) |
(1.7 pt) |
|
o/w Mobile Financial Services |
|
4 |
16 |
16 |
(75.4)% |
(75.4)% |
|
EBITDAaL - eCAPEX |
|
1,480 |
1,233 |
1,221 |
20.0 % |
21.2 % |
|
(1) EBITDAaL presentation adjustments are described in Appendix
2. |
|
|
|
|
|
|
31 December data
|
In millions of euros |
|
12M 2023 |
12M 2022comparablebasis |
12M 2022historicalbasis |
variationcomparablebasis |
changehistoricalbasis |
|
Revenues |
|
44,122 |
43,332 |
43,471 |
1.8 % |
1.5 % |
|
France |
|
17,730 |
17,977 |
17,983 |
(1.4)% |
(1.4)% |
|
Europe |
|
11,574 |
11,327 |
10,962 |
2.2 % |
5.6 % |
|
Africa & Middle East |
|
7,152 |
6,423 |
6,918 |
11.4 % |
3.4 % |
|
Orange Business |
|
7,927 |
7,912 |
7,930 |
0.2 % |
(0.0)% |
|
Totem |
|
686 |
685 |
685 |
0.3 % |
0.3 % |
|
International Carriers & Shared Services |
|
1,478 |
1,536 |
1,540 |
(3.7)% |
(4.0)% |
|
Intra-Group eliminations |
|
(2,426) |
(2,527) |
(2,547) |
|
|
|
EBITDAaL (1) |
|
13,035 |
12,870 |
12,963 |
1.3 % |
0.6 % |
|
o/w Telecom activities |
|
13,157 |
12,987 |
13,080 |
1.3 % |
0.6 % |
|
As % of revenues |
|
29.8 % |
30.0 % |
30.1 % |
(0.2 pt) |
(0.3 pt) |
|
France |
|
6,364 |
6,599 |
6,645 |
(3.6)% |
(4.2)% |
|
Europe |
|
3,037 |
2,871 |
2,772 |
5.8 % |
9.5 % |
|
Africa & Middle East |
|
2,734 |
2,427 |
2,584 |
12.7 % |
5.8 % |
|
Orange Business |
|
679 |
802 |
804 |
(15.4)% |
(15.5)% |
|
Totem |
|
372 |
371 |
371 |
0.4 % |
0.4 % |
|
International Carriers & Shared Services |
|
(30) |
(84) |
(96) |
63.8 % |
68.4 % |
|
o/w Mobile Financial Services |
|
(122) |
(118) |
(118) |
(3.9)% |
(3.9)% |
|
Operating Income |
|
4,969 |
4,661 |
4,801 |
6.6 % |
3.5 % |
|
o/w Telecom activities |
|
5,274 |
4,860 |
5,000 |
8.5 % |
5.5 % |
|
o/w Mobile Financial Services |
|
(306) |
(200) |
(200) |
(53.1)% |
(53.1)% |
|
Consolidated net income |
|
2,892 |
|
2,617 |
- |
10.5 % |
|
Net income attributable to equity owners of the Group |
|
2,440 |
|
2,146 |
|
13.7 % |
|
eCAPEX |
|
6,815 |
7,303 |
7,371 |
(6.7)% |
(7.5)% |
|
o/w Telecom activities |
|
6,783 |
7,267 |
7,335 |
(6.7)% |
(7.5)% |
|
as % of revenues |
|
15.4 % |
16.8 % |
16.9 % |
(1.4 pt) |
(1.5 pt) |
|
o/w Mobile Financial Services |
|
33 |
35 |
35 |
(8.3)% |
(8.3)% |
|
EBITDAaL - eCAPEX |
|
6,220 |
5,567 |
5,593 |
11.7 % |
11.2 % |
|
(1) EBITDAaL presentation adjustments are described in Appendix
2. |
|
|
|
|
|
|
|
In millions of euros |
|
December 312023 |
December 31 2022 |
|
Organic cash flow from telecom activities |
|
3,661 |
3,058 |
|
Free cash flow all-in from telecom activities |
|
2,940 |
1,845 |
|
Return On Capital Employed (ROCE) from telecom
activities |
|
6.7 % |
5.8 % |
|
Net financial debt (1) |
|
27,002 |
25,298 |
|
Ratio of financial debt / EBITDAaL from telecom activities
(2) |
|
2.05 |
1.93 |
|
(1) Net financial debt as defined and used by Orange does not
include Mobile Financial Services activities, for which this
concept is not relevant. |
|
(2) The ratio of net financial debt to EBITDAaL from telecom
activities is calculated based on the ratio of the Group’s net
financial debt to EBITDAaL from telecom activities over the
previous 12 months. |
Appendix 2: adjusted data to
income statement items
Quarterly data
|
|
|
4Q 2023 |
|
4Q 2022historical basis |
|
In millions of euros |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
|
Revenues |
|
11,578 |
- |
11,578 |
|
11,351 |
- |
11,351 |
|
External purchases |
|
(5,273) |
(9) |
(5,282) |
|
(5,100) |
(9) |
(5,109) |
|
Other operating income |
|
314 |
- |
314 |
|
197 |
1 |
197 |
|
Other operating expense |
|
(156) |
(42) |
(198) |
|
(56) |
(27) |
(83) |
|
Labor expenses |
|
(2,157) |
(66) |
(2,223) |
|
(2,179) |
(316) |
(2,496) |
|
Operating taxes and levies |
|
(255) |
6 |
(249) |
|
(315) |
(2) |
(317) |
|
Gains (losses) on disposal of fixed assets, investments and
activities |
|
na |
35 |
35 |
|
na |
98 |
98 |
|
Restructuring costs |
|
na |
(396) |
(396) |
|
na |
(39) |
(39) |
|
Depreciation and amortization of financed assets |
|
(36) |
- |
(36) |
|
(32) |
- |
(32) |
|
Depreciation and amortization of right-of-use assets |
|
(396) |
(1) |
(396) |
|
(370) |
- |
(370) |
|
Impairment of right-of-use assets |
|
(1) |
(39) |
(40) |
|
- |
(63) |
(63) |
|
Interest expenses on liabilities related to financed assets |
|
(5) |
5 |
na |
|
(2) |
2 |
na |
|
Interest expenses on lease liabilities |
|
(70) |
70 |
na |
|
(44) |
44 |
na |
|
EBITDAaL |
|
3,544 |
(436) |
na |
|
3,448 |
(312) |
na |
|
Significant litigation |
|
(26) |
26 |
na |
|
(5) |
5 |
na |
|
Specific labor expenses |
|
(74) |
74 |
na |
|
(315) |
315 |
na |
|
Fixed assets, investments and business portfolio review |
|
35 |
(35) |
na |
|
98 |
(98) |
na |
|
Restructuring program costs |
|
(429) |
429 |
na |
|
(103) |
103 |
na |
|
Acquisition and integration costs |
|
(18) |
18 |
na |
|
(34) |
34 |
na |
|
Interest expenses on liabilities related to financed assets |
|
na |
(5) |
(5) |
|
na |
(2) |
(2) |
|
Interest expenses on lease liabilities |
|
na |
(70) |
(70) |
|
na |
(44) |
(44) |
31 December data
|
|
|
12M 2023 |
|
12M 2022historical basis |
|
In millions of euros |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
|
Revenues |
|
44,122 |
- |
44,122 |
|
43,471 |
- |
43,471 |
|
External purchases |
|
(19,295) |
(26) |
(19,322) |
|
(18,707) |
(24) |
(18,732) |
|
Other operating income |
|
894 |
- |
894 |
|
745 |
2 |
747 |
|
Other operating expense |
|
(447) |
(5) |
(452) |
|
(367) |
(47) |
(413) |
|
Labor expenses |
|
(8,523) |
(495) |
(9,018) |
|
(8,537) |
(383) |
(8,920) |
|
Operating taxes and levies |
|
(1,797) |
3 |
(1,794) |
|
(1,879) |
(3) |
(1,882) |
|
Gains (losses) on disposal of fixed assets, investments and
activities |
|
na |
90 |
90 |
|
na |
233 |
233 |
|
Restructuring costs |
|
na |
(456) |
(456) |
|
na |
(125) |
(125) |
|
Depreciation and amortization of financed assets |
|
(129) |
- |
(129) |
|
(107) |
- |
(107) |
|
Depreciation and amortization of right-of-use assets |
|
(1,518) |
(4) |
(1,522) |
|
(1,507) |
- |
(1,507) |
|
Impairment of right-of-use assets |
|
(1) |
(67) |
(69) |
|
(1) |
(52) |
(54) |
|
Interest expenses on liabilities related to financed assets |
|
(14) |
14 |
na |
|
(3) |
3 |
na |
|
Interest expenses on lease liabilities |
|
(258) |
258 |
na |
|
(145) |
145 |
na |
|
EBITDAaL |
|
13,035 |
(690) |
na |
|
12,963 |
(251) |
na |
|
Significant litigation |
|
30 |
(30) |
na |
|
(9) |
9 |
na |
|
Specific labor expenses |
|
(503) |
503 |
na |
|
(372) |
372 |
na |
|
Fixed assets, investments and business portfolio review |
|
90 |
(90) |
na |
|
233 |
(233) |
na |
|
Restructuring program costs |
|
(526) |
526 |
na |
|
(177) |
177 |
na |
|
Acquisition and integration costs |
|
(53) |
53 |
na |
|
(74) |
74 |
na |
|
Interest expenses on liabilities related to financed assets |
|
na |
(14) |
(14) |
|
na |
(3) |
(3) |
|
Interest expenses on lease liabilities |
|
na |
(258) |
(258) |
|
na |
(145) |
(145) |
Appendix 3: economic CAPEX to
investments in property, plant and intangible
investment
|
In millions of euros |
|
4Q 2023 |
4Q 2022historicalbasis |
|
12M 2023 |
12M 2022historicalbasis |
|
Investments in property, plant and equipment and intangible
assets |
|
2,519 |
3,065 |
|
8,062 |
9,007 |
|
Financed assets |
|
(44) |
(94) |
|
(233) |
(229) |
|
Proceeds from sales of property, plant and equipment and intangible
assets |
|
(92) |
(155) |
|
(292) |
(347) |
|
Telecommunication licenses |
|
(318) |
(589) |
|
(721) |
(1,060) |
|
eCAPEX |
|
2,065 |
2,227 |
|
6,815 |
7,371 |
Appendix 4: key performance
indicators
|
In thousand, at the end of the period |
|
December 312023 |
|
December 312022 |
|
Number of convergent customers |
|
11,917 |
|
11,836 |
|
Number of mobile accesses (excluding MVNOs)
(1) |
|
253,981 |
|
242,235 |
|
o/w |
Convergent customers mobile accesses |
|
21,944 |
|
21,647 |
|
|
Mobile only accesses |
|
232,037 |
|
220,588 |
|
o/w |
Contract customers mobile accesses |
|
103,906 |
|
94,396 |
|
|
Prepaid customers mobile accesses |
|
150,076 |
|
147,840 |
|
Number of fixed accesses (2) |
|
44,504 |
|
45,850 |
|
|
Fixed Retail accesses |
|
30,802 |
|
31,397 |
|
|
|
Fixed Broadband accesses |
|
25,175 |
|
24,824 |
|
|
|
o/w |
Very high‑speed broadband fixed accesses |
|
16,463 |
|
14,710 |
|
|
|
|
Convergent customers fixed accesses |
|
11,917 |
|
11,836 |
|
|
|
|
Fixed accesses only |
|
13,258 |
|
12,988 |
|
|
|
Fixed Narrowband accesses |
|
5,627 |
|
6,572 |
|
|
Fixed Wholesale accesses |
|
13,702 |
|
14,453 |
|
Group total accesses (1+2) |
|
298,485 |
|
288,085 |
|
2022 data is on a comparable basis and includes access to the
telecom operator VOO acquired in June 2023 by Orange Belgium. |
Key performance indicators (KPI) by country are
presented in the "Orange investors data book Q4 2023" available on
www.orange.com, under Finance/Results:
www.orange.com/en/latest-consolidated-results
Appendix 5: Data excluding
Orange Spain
|
In billion of euros |
|
12M 2023 |
12M 2023simulation |
|
12M 2022historical basis |
12M 2022simulation |
|
|
|
inc. Orange Spain |
ex. Orange Spain |
D |
|
inc. Orange Spain |
ex. Orange Spain |
D |
|
Revenue |
|
44.1 |
39.7 |
(4.4) |
|
43.5 |
39.1 |
(4.3) |
|
EBITDAaL |
|
13.0 |
11.8 |
(1.2) |
|
13.0 |
11.9 |
(1.1) |
|
eCAPEX (excl. licences) |
|
6.8 |
6.1 |
(0.7) |
|
7.4 |
6.5 |
(0.9) |
|
eCapex/sales |
|
15.4% |
15.3% |
-10bps |
|
17.0% |
16.7% |
-30bps |
|
EBITDAaL - eCAPEX |
|
6.2 |
5.7 |
(0.5) |
|
5.6 |
5.3 |
(0.2) |
|
Organic cashflow (telecoms activities) |
|
3.7 |
3.2 |
(0.5) |
|
3.1 |
2.8 |
(0.3) |
*Illustration excluding Orange Spain and with
the neutralization of inter-company eliminations with Orange Spain
(such as Totem, management & brand fees) from 1 January
2022.
Disclaimer
In view of the progress of the operation and the
need to obtain the agreement of the competition authorities and the
competent administrative authorities, the Group considered that the
IFRS 5 criteria for the valuation and presentation of discontinued
activities were not met by 31 December 2023.
However, and subject in particular to the approval
of the competition authorities expected by 22 February 2024, the
Group wished to present an illustration of the impact of Orange
Spain no longer being consolidated by the Group. This illustration
was not carried out in accordance with the provisions of IFRS 5.
The accounting impact of the application of IFRS 5, if an agreement
is reached for this transaction, could lead to results that are
different from those presented above.
Appendix 6:
glossary
Key figures
Data on a comparable basis: data based on
comparable accounting principles, scope of consolidation and
exchange rates are presented for previous periods. The transition
from data on an historical basis to data on a comparable basis
consists of keeping the results for the period ended and then
restating the results for the corresponding period of the preceding
year for the purpose of presenting, over comparable periods,
financial data with comparable accounting principles, scope of
consolidation and exchange rate. The method used is to apply to the
data of the corresponding period of the preceding year, the
accounting principles and scope of consolidation for the period
just ended as well as the average exchange rate used for the income
statement for the period ended. Changes in data on a comparable
basis reflect organic business changes. Data on a comparable basis
is not a financial aggregate as defined by IFRS and may not be
comparable to similarly named indicators used by other
companies.
Retail services (B2C + B2B): aggregation of
revenues from (i) Convergent services, (ii) Mobile-only services,
(iii) Fixed-only services and (iv) IT & integration services
(see definitions). Retail Services (B2C+B2B) revenues include all
revenues of a given scope excluding revenues from wholesale
services, equipment sales and other revenues (see definitions).
EBITDAaL or “EBITDA after Leases”: operating
income (i) before depreciation and amortization of fixed assets,
effects resulting from business combinations, impairment of
goodwill and fixed assets, share of profits (losses) of associates
and joint ventures, (ii) after interest on debts related to
financed assets and on lease liabilities, and (iii) adjusted for
significant litigation, specific labor expenses, fixed assets,
investments and businesses portfolio review, restructuring programs
costs, acquisition and integration costs and, where appropriate,
other specific elements. EBITDAaL is not a financial aggregate as
defined by IFRS standards and may not be directly comparable to
similarly named indicators in other companies.
eCAPEX or “economic CAPEX”: (i) acquisitions of
property, plant and equipment and intangible assets, excluding
telecommunications licenses and financed assets, (ii) less the
price of disposal of property, plant and equipment and intangible
assets. eCAPEX is not a financial performance indicator as defined
by IFRS standards and may not be directly comparable to indicators
referenced by similarly named indicators in other companies.
Organic Cash Flow (telecoms activities): for the
perimeter of the telecoms activities, net cash provided by
operating activities, minus (i) lease liabilities repayments and
debts related to financed assets repayments, and (ii) purchases and
sales of property, plant and equipment and intangible assets, net
of the change in the fixed assets payables, (iii) excluding
telecommunication licenses paid and significant litigations paid or
received. Organic Cash Flow (telecoms activities) is not a
financial aggregate defined by IFRS and may not be comparable to
similarly named indicators used by other companies.
Free cash flow all-in (telecoms activities):
Free cash flow all-in from telecom activities corresponds to net
cash provided by operating activities, minus (i) purchases and
sales of property, plant and equipment and intangible assets, net
of the change in the fixed assets payables, (ii) repayments of
lease liabilities and on debts related to financed assets, and
(iii) payments of coupons on subordinated notes. Free cash flow
all-in from telecom activities is not a financial aggregate defined
by IFRS and may not be comparable to similarly named indicators
used by other companies.
Earnings per share (EPS) – Group share Net
income – Basic: Basic earnings per share are calculated by dividing
(a) net income for the year attributable to the shareholders of the
Group, after deduction of the remuneration net of the tax to
holders of subordinated notes, by (b) the weighted average number
of ordinary shares outstanding during the period.
Return On Capital Employed (ROCE): ROCE (Return
On Capital Employed) from telecoms activities corresponds to Net
Operating Profit After Tax (NOPAT) for the year ended (N) divided
by Net Operating Assets (NOA) for the previous year (N-1).
Net Operating Profit After Tax (NOPAT) for the
year ended (N) corresponds to operating profit (i) after interest
on lease liabilities and on debts related to financed assets, and
(ii) after income tax adjusted for the tax impact of financial
income excluding interest on lease liabilities and on debts related
to financed assets (tax charge calculated on the basis of the
statutory tax rate applicable in France, the tax jurisdiction of
the parent company Orange SA).
Net Operating Assets (NOA) for the previous year
(N-1) correspond to (i) equity and (ii) financial liabilities and
derivative liabilities (non‑current and current), excluding debts
on financed assets, (iii) less financial assets and derivative
assets (non‑current and current), cash and cash equivalents,
including investments in Mobile Financial Services.
ROCE from telecoms activities is not a financial
aggregate defined by IFRS and may not be comparable to similarly
named indicators used by other companies.
Performance indicators
Fixed retail accesses: number of fixed broadband
accesses (xDSL (ADSL and VDSL), FTTx, cable, Fixed-4G (fLTE) and
other broadband accesses (satellite, Wimax and others)) and fixed
narrowband accesses (mainly PSTN) and payphones.
Fixed wholesale accesses: number of fixed
broadband and narrowband wholesale accesses operated by Orange.
Convergence
Convergent services: customer base and revenues
from B2C Convergent retail offers, excluding equipment sales (see
definition) defined as an offer combining at least a broadband
access (xDSL, FTTx, cable or Fixed-4G (fLTE) with cell-lock) and a
mobile voice contract (excluding MVNOs).
Convergent ARPO: average quarterly revenues per
convergent offer (ARPO) calculated by dividing revenues from retail
Convergent services offers invoiced to B2C customers generated over
the past three months (excluding IFRS 15 adjustments) by the
weighted average number of retail Convergent offers over the same
period. ARPO is expressed by monthly revenues per convergent
offer.
Mobile-only services
Mobile-only services: revenues from mobile
offers (mainly outgoing calls: voice, SMS and data) invoiced to
retail customers, excluding convergent services and equipment sales
(see definitions). The customer base includes customers with a
contract excluding retail convergence, machine-to-machine contracts
and prepaid cards.
Mobile-only ARPO: average quarterly revenues
from Mobile-only (ARPO) calculated by dividing revenues from
Mobile-only retail services (excluding machine-to-machine and IFRS
15 adjustments) generated over the past three months by the
weighted average of Mobile-only customers (excluding
machine-to-machine) over the same period. The ARPO is expressed as
monthly revenues per Mobile-only customer.
Fixed-only services
Fixed-only services: revenues from fixed retail
offers, excluding B2C convergent offers and equipment sales (see
definitions). It includes (i) fixed narrowband services
(conventional fixed telephony), (ii) fixed broadband services, and
(iii) business solutions and networks (with the exception of
France, for which essential business solutions and networks are
supported by Orange Business operating segment). For the Orange
Business operating segment, Fixed-only service revenues include
sales of network equipment related to the operation of voice and
data services. The customer base consists of fixed narrowband and
fixed broadband customers, excluding retail convergence
customers.
Fixed-only Broadband ARPO: average quarterly
revenues from Fixed-only Broadband (ARPO) calculated by dividing
the revenue from Fixed-only Broadband retail services (excluding
IFRS 15 adjustments) generated over the past three months by the
weighted average of Fixed-only Broadband customers over the same
period. ARPO is expressed as monthly revenues per Fixed-only
Broadband customer.
IT & integration
services
IT & Integration services: revenues from
unified communication and collaboration services (Local Area
Network and telephony, advising, integration and project
management), hosting and infrastructure services (including Cloud
Computing), applications services (customer relations management
and other applications services), security services, video
conferencing offers, machine-to-machine services (excluded
connectivity) as well as sales of equipment related to the above
products and services.
Wholesale
Wholesale: revenues from other carriers consists
of (i) mobile services to other carriers including incoming
traffic, visitor roaming, network sharing, national roaming and
Mobile Virtual Network Operators (MVNOs), (ii) fixed services to
other carriers including national networking, services to
international carriers, high-speed and very high-speed broadband
access (fibre access, unbundling of telephone lines and xDSL access
sales) and the sale of telephone lines on the wholesale market, and
(iii) equipment sales to other carriers.
Equipment sales
Equipment sales: revenues from all mobile and
fixed equipment sales, excluding (i) equipment sales associated
with the supply of IT & Integration services, (ii) sales of
network equipment related to the operation of voice and data
services in the Orange Business operating segment, (iii) equipment
sales to other carriers, and (iv) equipment sales to dealers and
brokers.
Other revenues
Other revenues: revenues including (i) equipment
sales to brokers and dealers, (ii) portal, (iii) on-line
advertising revenues, (iv) corporate transversal business line
activities, and (v) other miscellaneous revenues.
1 Unless otherwise stated, percentage changes are
on a year-on-year basis, calculated against 31 December 2022 and on
a comparable basis.2 Services invoiced to customers (B2C and B2B).
See definition in the attached glossary.3 Changes are presented on
a comparable basis.4 On a historical basis5 Definitions in Appendix
6: Glossary6 Telecom activities7 These targets are on a comparable
basis and do not take into account mergers and acquisitions not yet
finalized8 Organic cash flow for 2023 restated for Orange Spain:
3.18 billion euros9 The auditing procedures are currently being
completed and the audit report will be produced in March.10
Excluding M2M and prepaid11 Covid lines: low ARPU lines for
students contracted in 2020 set to expire in December 202312
European company within the Orange group that owns and manages the
passive mobile infrastructure portfolio of telecommunication
towers, initially in France and Spain. It has been presented as a
separate business segment since 1 January 2022.
- PR_Orange_FY2023_EN_150224
Grafico Azioni Orange (TG:FTE)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Orange (TG:FTE)
Storico
Da Feb 2024 a Feb 2025
