Q3 2020 financial information (correction)
`
Press release
Paris, 29 October 2020
Q3 2020 financial information
Return to revenue growth despite the impact of the health
crisis
- Strong commercial
performance and growth in Wholesale and convergence enabled Orange
to post EBITDAaL in line with the trajectory announced for
2020.
- Proposed return to a €0.70
per share dividend for 2020. Orange will pay an interim dividend of
€0.40 per share in December, revised upwards by €0.10.
In millions of euros |
|
3Q 2020 |
changecomparablebasis |
changehistoricalbasis |
|
9M 2020 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
10,584 |
0.8 % |
0.1 % |
|
31,353 |
0.5 % |
0.7 % |
EBITDAaL |
|
3,584 |
(0.4)% |
(0.8)% |
|
9,498 |
(0.6)% |
(0.7)% |
eCAPEX (excluding licenses) |
|
1,730 |
0.9 % |
0.3 % |
|
4,886 |
(6.3)% |
(6.6)% |
EBITDAaL - eCAPEX |
|
1,854 |
(1.5)% |
(1.9)% |
|
4,612 |
6.3 % |
6.4 % |
- Return to revenue growth in the third quarter of 2020 despite
the continuing sharp decline in roaming and the more limited
decline in equipment sales, both linked to the health crisis.
Growth in France and Africa & Middle East exceeded the decline
in the other segments, which nevertheless showed an improving trend
compared to the second quarter.
- Moderate decline in EBITDAaL in the third quarter, which
benefited from the co-financing of the fiber network in France yet
remains adversely impacted by the decline in roaming and the cost
of health measures. Over the first nine months, the decline in
EBITDAaL was limited to 0.6%1.
- Decline in the Group’s eCAPEX over the first nine months,
mainly as a result of co-financing, despite the acceleration of
deployments in fixed and mobile broadband networks.
Commenting on the publication of the third quarter 2020 results,
Stéphane Richard, Chairman and CEO of the Orange Group, said:
“From the beginning of the year the Orange Group has
demonstrated its resilience in all its markets in the face of an
unprecedented health and economic crisis. Our networks have proven
their robustness, our commercial performance has been very positive
and we’re in line with all our financial objectives for the
year.
We returned to top-line growth in the third quarter (+0.8%) with
EBITDAal on a more favourable trend than in the previous quarter
(-0.4%), giving us added confidence in terms of the delivery of our
guidance.
These solid results also reflect co-financing with other
operators in our French fiber networks which should continue in the
coming years. I see this as a sign the market is transitioning
towards fiber and offers us a way to earn a return on our
investments.
Beyond co-financing and the direct impact of the crisis, our
underlying performance remains solid, thanks to a very strong
commercial performance. There has been no fall-off in demand during
the health crisis when the quality of connectivity is more
essential than ever. With 360,000 net adds, we’ve had a record
quarter for fiber in France, where we now have more than 4 million
customers. Poland has also seen record fiber sales, while the
commercial performance in Spain has been very encouraging even if
the competitive environment there continues to be tough.
I’d like to signal the excellent dynamic in Africa and the
Middle East which returned to revenue growth of more than 5%,
mainly thanks to mobile data and renewed activity at Orange Money.
Finally, after difficult first half for B2B services, the recovery
at Orange Business Services (OBS) is well under way, in particular
due to the momentum in IT services.
Strengthened by these good performances, we’re accelerating the
roll-out of our Engage 2025 strategy. After Romania, we’ve
recently launched 5G offers in Poland and in Spain. In France,
we’ve acquired the largest bloc of 5G frequencies and this will
allow us to maintain our leadership in mobile networks.
We’re pushing ahead with projects that aim to better capitalise
on our infrastructure and to develop our networks while also
carefully managing our investments. Consistent with this, we’ve
launched the necessary processes for the establishment of a
European TowerCo that will take in our masts in France and Spain.
Similarly, our Fiberco projects in rural areas in France and Poland
are moving ahead well.
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.
My warm thanks go to all of Orange’s teams who have been fully
mobilised throughout the crisis at the service of our clients.”
Comments on key Group figures
Revenues
Orange Group revenues totaled €10.6 billion in the third quarter
2020, up 0.8% year on year on a comparable basis. This growth was
driven by the momentum in services, in particular wholesale
services thanks to the co-financing of the fiber network in France
and convergent services which rose 5.7% and 1.5% respectively.
Roaming continued to be adversely impacted by travel restrictions,
while the decline in equipment sales was contained at 1.9%.
France and Africa & Middle East contributed positively with
respective growth of 3.1% and 5.1% (compared to growth of 2.7% and
1.3% in the second quarter) while Europe (including Spain) and
Enterprise continued to be under pressure, albeit with an improving
trend.
Over the first nine months of the year, revenue growth was
0.5%.
Customer base growth
There were 10.9 million convergent customers
across the Group at 30 September 2020, up 2.1% year on year,
supported by continued strong growth in Europe.
Mobile services had 211.9 million customers at
30 September 2020, up 2.5% year on year, including 76.2 million
contract customers, an increase of 4.0%.
Fixed services had 45.1
million customers on 30 September 2020, down 1.4% year on year,
primarily due to the 12.8% decline in fixed narrowband accesses and
despite the continued very strong growth (up 21.9%) in high-speed
broadband accesses.
EBITDAaL
Group EBITDAaL was €3.58 billion in the third
quarter, down 0.4% on a comparable basis, adversely impacted
primarily by the decline in roaming and costs directly relating to
the health crisis (including provisions for bad debts) of €109
million and €41 million respectively. These circumstantial impacts
were again offset this quarter by co-financing of the fiber network
in France.
Over the first nine months of the year, the decline in EBITDAaL
was limited to 0.6%.
EBITDAaL of the telecom activities was €3.61
billion in the third quarter, down 0.6% on a comparable basis. It
fell by 0.7% over the first nine months.
eCAPEX
Group eCAPEX rose 0.9% in the third quarter,
due to the acceleration of the FTTH roll-out in France in
September. It was down 6.3% over the first nine months, despite a
step-up in investments in the fixed and mobile broadband networks,
principally as a result of the co-financing of the fiber network in
France.
Monetization of the networks and execution of the
infrastructure strategy
At 30 September 2020, the cumulative co-financing proceeds
received by Orange since 2009 for the fiber network in France was
€2.4 billion. This amount represents slightly less than 50% of the
total long-term co-financing potential, calculated based on
estimates for the current broadband market shares of the Group’s
competitors.
In addition, Orange has taken new steps in its plans to share
future fiber network deployments with partners via FiberCos and
expects to sign agreements in the first half of 2021 with a view to
creating dedicated structures in France and Poland that will be
operational in 2021.
Regarding value-creating initiatives for its European mobile
network, Orange will detail the progress of the ongoing TowerCo
projects dedicated to managing towers in France and Spain in the
publication of its 2020 annual results.
Changes in asset portfolio
There were no significant changes in the asset portfolio in the
third quarter of 2020.
2020 outlook
Orange confirms it does not foresee any significant deviation
from its financial objectives for 2020:
- the Group expects a slight decline in EBITDAaL in 2020 of
around 1%, including all the effects related to the Covid-19
epidemic.
- Given the delays in investments observed to date, eCAPEX will
be lower, offsetting the decline in EBITDAaL.
- As such, Group EBITDAaL less eCapex will be stable in
2020.
- The Group’s commitment to exceed €2.3 billion in organic cash
flow of the telecoms activities remains unchanged.
- The objective of a ratio of net debt to EBITDAaL for telecoms
activities is maintained at around 2x in the medium term.
Dividend
In view of the third-quarter results and the confidence in
reaching the organic cash flow objective for 2020, the Board of
Directors supports the return to a dividend of €0.70 per share in
respect of the 2020 financial year. A definitive proposal will be
made to the Annual General Meeting of 18 May 2021 in light of the
final results for the year. Furthermore, Orange will pay an interim
dividend of €0.40 per share on 9 December 2020, an increase of
€0.10 compared to the amount announced in July.
Review by operating segment
France
In millions of euros |
|
3Q 2020 |
changecomparablebasis |
changehistoricalbasis |
|
9M 2020 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
4,693 |
3.1 % |
3.2 % |
|
13,717 |
2.1 % |
2.2 % |
Retail
services |
|
2,691 |
(0.4)% |
(0.4)% |
|
8,068 |
(0.1)% |
(0.1)% |
Convergence |
|
1,137 |
2.5
% |
3.2
% |
|
3,405 |
4.0
% |
4.6
% |
Mobile Only |
|
564 |
(2.7)% |
(3.6)% |
|
1,687 |
(2.8)% |
(3.8)% |
Fixed Only |
|
990 |
(2.4)% |
(2.4)% |
|
2,976 |
(3.0)% |
(3.0)% |
Wholesale |
|
1,543 |
10.5
% |
10.7
% |
|
4,414 |
8.4
% |
8.6
% |
Equipment
sales |
|
302 |
(9.8)% |
(9.8)% |
|
759 |
(16.8)% |
(16.8)% |
Other revenues |
|
157 |
33.3 % |
32.3 % |
|
475 |
29.8 % |
29.1 % |
Revenue growth supported by infrastructure co-financing
and convergent services. Very good commercial performance from
mobile and fiber.
Third-quarter revenue growth in France was driven by the
momentum of convergent services and strong growth in wholesale,
thanks to the significant fiber network co-financing proceeds
received in July.
Retail services revenues fell 0.4% year on year. Excluding PSTN
and ePresse and audiobook offers, revenues would have increased
1.7%. Revenues from convergent services increased 2.5%, despite the
strong impact of the health crisis on customer roaming. Mobile only
revenues were also adversely impacted by the decline in customer
roaming and prepaid “holiday” offers, mainly taken up by
tourists.
Equipment sales continued to decline although with an improving
trend compared to the second quarter thanks to the reopening of
stores after lockdown. The quarter was also impacted by the
postponed release of the iPhone 12.
Despite a decline in national roaming, wholesale revenues rose
strongly thanks to the co-financing of the fiber network and the
construction of Public Initiative Networks.
From a commercial standpoint, convergent ARPO rose 1.2% to
€68.80. Mobile contracts (excluding M2M) posted 125,000 net adds,
driven by the Sosh and Open offers (up 133,000 and 64,000 in net
adds respectively). This is the best performance since the second
quarter of 2018.
Fiber again had an excellent quarter with a new record of
360,000 net adds (versus 178,000 in the third quarter of 2019) Of
these sales, 53% were to new customers. The roll-out of fiber
continued at a rapid pace with a total of 20.9 million connectable
homes and the threshold of 4 million fiber customers exceeded at
the end of September.
Europe
In millions of euros |
|
3Q 2020 |
changecomparablebasis |
changehistoricalbasis |
|
9M 2020 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
2,636 |
(3.7)% |
(4.2)% |
|
7,864 |
(3.3)% |
(3.6)% |
Retail
services |
|
1,771 |
(4.5)% |
(5.0)% |
- |
5,366 |
(2.6)% |
(2.8)% |
Convergence |
|
673 |
(0.2)% |
(0.6)% |
- |
2,050 |
1.9
% |
1.5
% |
Mobile Only |
|
766 |
(8.2)% |
(8.6)% |
- |
2,291 |
(7.5)% |
(7.9)% |
Fixed Only |
|
270 |
(2.7)% |
(3.8)% |
- |
816 |
(4.2)% |
(5.2)% |
IT & Integration services |
|
61 |
(9.5)% |
(7.8)% |
- |
209 |
23.3
% |
36.7
% |
Wholesale |
|
480 |
(5.3)% |
(6.0)% |
- |
1,431 |
(0.7)% |
(1.4)% |
Equipment
sales |
|
355 |
4.8
% |
4.1
% |
- |
966 |
(8.2)% |
(8.8)% |
Other revenues |
|
30 |
(18.8)% |
(20.0)% |
- |
101 |
(20.4)% |
(21.2)% |
Revenues under continued pressure but commercial
performance improving strongly.
Revenues in Europe (which now includes Spain as well as Belgium,
Luxembourg, Moldova, Poland, Romania and Slovakia) remained under
pressure in the third quarter. The reduction in roaming accounts
for more than half of the decline. This said, the trend improved
compared to the second quarter, largely thanks to a recovery in
equipment sales.
Retail services were adversely affected by the weaker sales
performance recorded in previous quarters, by a significant
negative seasonal effect on customer roaming and by a contraction
in IT&S sales following strong growth in previous quarters.
While the health crisis continues to restrict the free movement
of people, sales performances in the seven country Europe zone saw
a significant turnaround in all product lines, with net adds of
221,000 mobile contracts (excluding M2M), 80,000 of which were
accounted for by tablets in Romania (versus -129,000 in the second
quarter), 285,000 by prepaid (versus -664,000 in the second
quarter), 96,000 by fixed broadband, of which 139,000 were FTTH
connections (versus 32,000 in the second quarter) and 51,000 by TV
(versus -31,000 in the second quarter). This excellent performance
resulted mainly from the revamping of our product lines undertaken
in most of our geographies.
In Spain, the 5.6% decline in revenues in the third quarter was
an improvement on the second quarter (down 6.8%), despite the
significant negative effect of the health crisis on roaming
revenues, which impacted both wholesale and retail services
revenues.
The 7.7% decline in retail services revenues (versus a 7.2%
decline in the second quarter) was due to the loss of volumes,
relating to Orange Spain’s previously weak presence at the lower
end of the market. Excluding roaming, retail service revenues
stabilized compared to the second quarter.
The new commercial strategy launched in the second quarter
already demonstrated its effectiveness in the back-to-school period
and with the start of the football season, with a return to
positive net adds in fixed broadband, TV and mobile, leading to
growth in the convergent customer base for the first time since the
first quarter of 2018.
Africa & Middle East
In millions of euros |
|
3Q 2020 |
changecomparablebasis |
changehistoricalbasis |
|
9M 2020 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
1,474 |
5.1 % |
1.9 % |
|
4,320 |
4.2 % |
3.2 % |
Retail
services |
|
1,263 |
7.1
% |
3.5
% |
|
3,707 |
6.9
% |
5.6
% |
Mobile Only |
|
1,116 |
6.0
% |
2.5
% |
|
3,280 |
6.1
% |
4.7
% |
Fixed Only |
|
140 |
15.3
% |
11.6
% |
|
410 |
12.7
% |
12.0
% |
IT & Integration services |
|
6 |
35.8
% |
34.1
% |
|
16 |
58.0
% |
57.1
% |
Wholesale |
|
176 |
(8.7)% |
(11.2)% |
|
518 |
(11.3)% |
(12.0)% |
Equipment
sales |
|
22 |
3.4
% |
(0.6)% |
|
62 |
(8.0)% |
(7.6)% |
Other revenues |
|
14 |
48.3 % |
90.5 % |
|
33 |
25.7 % |
66.3 % |
Significant return to growth in Africa & Middle
East
Africa & Middle East third quarter revenues
returned to strong growth driven by mobile data, Orange Money and
fixed broadband, after a second quarter marked by the impact of the
health crisis.
The 4G customer base reached 30.9 million, an
increase of 37% year on year, out of a total of 126 million mobile
customers.
Orange Money revenue growth
accelerated again in the third quarter, reaching 27.1%, after a
second quarter marked by the free transaction measures recommended
by the authorities to help combat the epidemic. The active customer
base increased 21% year on year to reach a level of more than 20
million customers.
The number of fixed broadband customers grew 38%
year on year, reaching 1.6 million customers; revenues were up
26.4%.
Wholesale revenues continued to be
affected by the decrease in international travel and visitor
roaming.
In the third quarter, 12 countries in the region
recorded growth, with six of them in double-digits.
Enterprise
In millions of euros |
|
3Q 2020 |
changecomparablebasis |
changehistoricalbasis |
|
9M 2020 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
1,898 |
(1.7)% |
(2.4)% |
|
5,757 |
(1.4)% |
0.7 % |
Fixed
Only |
|
952 |
(2.0)% |
(2.6)% |
|
2,910 |
(1.6)% |
(1.6)% |
Voice |
|
303 |
(3.4)% |
(3.8)% |
|
935 |
(3.0)% |
(3.0)% |
Data |
|
649 |
(1.3)% |
(2.0)% |
|
1,975 |
(0.9)% |
(0.9)% |
IT &
Integration services |
|
734 |
(0.5)% |
(1.6)% |
|
2,209 |
1.1
% |
7.1
% |
Mobile
* |
|
213 |
(4.6)% |
(4.6)% |
|
638 |
(8.5)% |
(8.5)% |
Mobile Only |
|
159 |
(8.4)% |
(8.5)% |
|
487 |
(10.2)% |
(10.2)% |
Wholesale |
|
11 |
30.6
% |
30.6
% |
|
32 |
23.5
% |
23.5
% |
Equipment sales |
|
42 |
4.8 % |
4.8 % |
|
119 |
(7.7)% |
(7.7)% |
Decline in revenues of 1.7%, an improvement on the
second quarter (down 3.3%), despite the still significant impact of
the health crisis on B2B business.
IT and integration services revenues almost
returned to stability after a 2.6% decline in the second quarter
and over the first 9 months continued to show growth. Cloud and
cybersecurity services slowed in the third quarter, but posted
growth of 5% and 8% respectively over the first nine months of the
year.
Traditional
voice services declined again, however the
trend was less pronounced than before the health crisis, thanks to
VoIP and collaboration solutions, while Data
revenues continued to be impacted by Globecast, whose broadcasting
activities have been reduced as a result of event
cancellations.
Mobile* revenues continued to be significantly
affected by the substantial decline in roaming revenues (down 71%)
caused by the health crisis.
Overall, the segment’s profitability improved
compared with the second quarter.
* Mobile revenues include mobile services and
mobile equipment sales invoiced to businesses and incoming mobile
traffic from businesses invoiced to other carriers.
International Carriers & Shared
Services
In millions of euros |
|
3Q 2020 |
changecomparablebasis |
changehistoricalbasis |
|
9M 2020 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
352 |
(5.7)% |
(6.1)% |
|
1,080 |
(3.5)% |
(3.7)% |
Wholesale |
|
250 |
(7.2)% |
(7.4)% |
|
780 |
(4.0)% |
(4.0)% |
Other revenues |
|
102 |
(1.9)% |
(2.9)% |
|
301 |
(2.2)% |
(2.9)% |
Revenues from International Carriers and Shared
Services declined 5.7% in the third quarter.
International wholesale services continued to be heavily
impacted by the Covid-19 epidemic due to the international travel
ban and the reduction in flows on voice corridors.
Other revenues also continued to be affected by the decline in
installation activities at Orange Marine, also hit by the health
crisis.
Orange Bank
In the third quarter, despite a slowdown in commercial activity
as a result of the health crisis, Orange Bank’s customer base
continued to grow reaching a total of 1.1 million customers at 30
September 2020, including mobile insurance.
Orange Bank is successfully pursuing its value-oriented
strategy, with a record number of premium card sales and nearly 60%
of new customers in France (excluding mobile insurance) subscribing
to paid offers in the third quarter of 2020, up from 27% in the
third quarter of 2019.
Calendar of upcoming events
18/02/2021 - Publication of full year 2020
results
Contacts
Press: +33 1 44 44 93 93 Tom Wright tom.wright@orange.com
Olivier Emberger olivier.emberger@orange.com |
Financial Communications: +33 1 44 44 04 32 (analysts and
investors) Patrice Lambert-de Diesbach p.lambert@orange.com Samuel
Castelosamuel.castelo@orange.com Didier Kohn didier.kohn@orange.com
Aurélia Roussel aurelia.roussel@orange.com Andrei Dragolici
andrei.dragolici@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. In particular, the consequences of the Covid-19 outbreak
are uncertain and the health crisis may exacerbate the risks that
the Group faces. More detailed information on the potential risks
that could affect our financial results is included in the
Universal Registration Document filed on 20 April 2020 with the
French Financial Markets Authority (AMF) and in the annual report
(Form 20-F) filed on 21 April 2020 with the U.S. Securities and
Exchange Commission. 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: Key financial indicators
Quarterly data
In millions of euros |
|
3Q 2020 |
3Q 2019comparablebasis |
3Q 2019historicalbasis |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
10,584 |
10,504 |
10,577 |
0.8 % |
0.1 % |
France |
|
4,693 |
4,551 |
4,548 |
3.1
% |
3.2
% |
Europe |
|
2,636 |
2,737 |
2,752 |
(3.7)% |
(4.2)% |
Africa & Middle-East |
|
1,474 |
1,402 |
1,447 |
5.1
% |
1.9
% |
Enterprise |
|
1,898 |
1,931 |
1,946 |
(1.7)% |
(2.4)% |
International Carriers & Shared Services |
|
352 |
373 |
375 |
(5.7)% |
(6.1)% |
Intra-Group eliminations |
|
(468) |
(491) |
(491) |
|
|
EBITDAaL (1) |
|
3,584 |
3,597 |
3,614 |
(0.4)% |
(0.8)% |
o/w
telecom activities |
|
3,613 |
3,634 |
3,651 |
(0.6)% |
(1.0)% |
As % of revenues |
|
34.1
% |
34.6
% |
34.5
% |
(0.5
pt) |
(0.4
pt) |
o/w
Orange Bank |
|
(29) |
(37) |
(37) |
21.2
% |
21.2
% |
eCAPEX |
|
1,730 |
1,715 |
1,724 |
0.9 % |
0.3 % |
o/w
telecom activities |
|
1,723 |
1,708 |
1,718 |
0.9
% |
0.3
% |
as % of revenues |
|
16.3
% |
16.3
% |
16.2
% |
0.0
pt |
0.0
pt |
o/w Orange Bank |
|
7 |
6 |
6 |
15.9 % |
15.9 % |
EBITDAaL - eCAPEX |
|
1,854 |
1,883 |
1,890 |
(1.5)% |
(1.9)% |
(1) EBITDAaL adjustments are described in Appendix 2.
Data at 30 September:
In millions of euros |
|
9M 2020 |
9M 2019comparablebasis |
9M 2019historicalbasis |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
31,353 |
31,207 |
31,150 |
0.5 % |
0.7 % |
France |
|
13,717 |
13,431 |
13,423 |
2.1
% |
2.2
% |
Europe |
|
7,864 |
8,130 |
8,160 |
(3.3)% |
(3.6)% |
Africa & Middle-East |
|
4,320 |
4,144 |
4,185 |
4.2
% |
3.2
% |
Enterprise |
|
5,757 |
5,839 |
5,716 |
(1.4)% |
0.7
% |
International Carriers & Shared Services |
|
1,080 |
1,119 |
1,121 |
(3.5)% |
(3.7)% |
Intra-Group eliminations |
|
(1,384) |
(1,457) |
(1,454) |
|
|
EBITDAaL (1) |
|
9,498 |
9,555 |
9,570 |
(0.6)% |
(0.7)% |
o/w
telecom activities |
|
9,598 |
9,669 |
9,684 |
(0.7)% |
(0.9)% |
As % of revenues |
|
30.6
% |
31.0
% |
31.1
% |
(0.4
pt) |
(0.5
pt) |
o/w
Orange Bank |
|
(101) |
(115) |
(115) |
12.1
% |
12.1
% |
eCAPEX |
|
4,886 |
5,217 |
5,233 |
(6.3)% |
(6.6)% |
o/w
telecom activities |
|
4,865 |
5,194 |
5,211 |
(6.3)% |
(6.6)% |
as % of revenues |
|
15.5
% |
16.6
% |
16.7
% |
(1.1
pt) |
(1.2
pt) |
o/w Orange Bank |
|
21 |
23 |
23 |
(6.0)% |
(6.0)% |
EBITDAaL - eCAPEX |
|
4,612 |
4,339 |
4,336 |
6.3 % |
6.4 % |
(1) EBITDAaL adjustments are described in Appendix 2.
Appendix 2: adjusted data to income statement items
Quarterly data
|
|
3Q 2020 |
|
3Q 2019historical basis |
In millions of euros |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
Revenues |
|
10,584 |
- |
10,584 |
|
10,577 |
- |
10,577 |
External
purchases |
|
(4,261) |
- |
(4,261) |
|
(4,437) |
- |
(4,437) |
Other
operating income |
|
132 |
- |
132 |
|
184 |
- |
184 |
Other
operating expense |
|
(112) |
(7) |
(119) |
|
(84) |
(1) |
(85) |
Labor
expenses |
|
(1,991) |
67 |
(1,924) |
|
(1,947) |
33 |
(1,914) |
Operating
taxes and levies |
|
(352) |
- |
(352) |
|
(326) |
- |
(326) |
Gains
(losses) on disposal of fixed assets, investments and
activities |
|
- |
14 |
14 |
|
- |
40 |
40 |
Restructuring costs |
|
- |
2 |
2 |
|
- |
(12) |
(12) |
Depreciation and amortization of financed assets |
|
(15) |
- |
(15) |
|
(4) |
- |
(4) |
Depreciation and amortization of right-of-use assets |
|
(367) |
- |
(367) |
|
(316) |
- |
(316) |
Impairment of right-of-use assets |
|
- |
- |
- |
|
(0) |
- |
(0) |
Interests
expenses on liabilities related to financed assets |
|
(0) |
0 |
- |
|
(0) |
0 |
- |
Interests expenses on lease liabilities |
|
(33) |
33 |
- |
|
(33) |
33 |
- |
EBITDAaL |
|
3,584 |
109 |
- |
|
3,614 |
94 |
- |
Significant litigation |
|
(3) |
3 |
- |
|
10 |
(10) |
- |
Specific
labour expenses |
|
68 |
(68) |
- |
|
29 |
(29) |
- |
Fixed
assets, investments and business portfolio review |
|
14 |
(14) |
- |
|
40 |
(40) |
- |
Restructuring program costs |
|
2 |
(2) |
- |
|
(12) |
12 |
- |
Acquisition and integration costs |
|
(6) |
6 |
- |
|
(7) |
7 |
- |
Interests
expenses on liabilities related to financed assets |
|
- |
(0) |
(0) |
|
- |
(0) |
(0) |
Interests expenses on lease liabilities |
|
- |
(33) |
(33) |
|
- |
(33) |
(33) |
Data at 30 September:
|
|
9M 2020 |
|
9M 2019historical basis |
In millions of euros |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
Revenues |
|
31,353 |
- |
31,353 |
|
31,150 |
- |
31,150 |
External
purchases |
|
(12,808) |
- |
(12,808) |
|
(12,981) |
- |
(12,981) |
Other
operating income |
|
403 |
- |
403 |
|
525 |
- |
525 |
Other
operating expense |
|
(387) |
(181) |
(568) |
|
(278) |
(7) |
(285) |
Labor
expenses |
|
(6,333) |
33 |
(6,300) |
|
(6,267) |
(81) |
(6,347) |
Operating
taxes and levies |
|
(1,584) |
- |
(1,584) |
|
(1,533) |
- |
(1,533) |
Gains
(losses) on disposal of fixed assets, investments and
activities |
|
- |
73 |
73 |
|
- |
108 |
108 |
Restructuring costs |
|
- |
(11) |
(11) |
|
- |
(63) |
(63) |
Depreciation and amortization of financed assets |
|
(37) |
- |
(37) |
|
(7) |
- |
(7) |
Depreciation and amortization of right-of-use assets |
|
(1,019) |
- |
(1,019) |
|
(943) |
- |
(943) |
Impairment of right-of-use assets |
|
- |
(6) |
(6) |
|
(0) |
(24) |
(25) |
Interests
expenses on liabilities related to financed assets |
|
(1) |
1 |
- |
|
(0) |
0 |
- |
Interests expenses on lease liabilities |
|
(91) |
91 |
- |
|
(97) |
97 |
- |
EBITDAaL |
|
9,498 |
(0) |
- |
|
9,570 |
30 |
- |
Significant litigation |
|
(172) |
172 |
- |
|
(55) |
55 |
- |
Specific
labour expenses |
|
40 |
(40) |
- |
|
(17) |
17 |
- |
Fixed
assets, investments and business portfolio review |
|
73 |
(73) |
- |
|
108 |
(108) |
- |
Restructuring program costs |
|
(17) |
17 |
- |
|
(87) |
87 |
- |
Acquisition and integration costs |
|
(16) |
16 |
- |
|
(17) |
17 |
- |
Interests
expenses on liabilities related to financed assets |
|
- |
(1) |
(1) |
|
- |
(0) |
(0) |
Interests expenses on lease liabilities |
|
- |
(91) |
(91) |
|
- |
(97) |
(97) |
Appendix 3: Key performance indicators
In thousand, at the end of the period |
|
30 September 2020 |
|
30 September 2019 |
Number of convergent customers |
|
10,914 |
|
10,686 |
Number of mobile accesses (excluding MVNOs)
(1) |
|
211,856 |
|
206,743 |
o/w |
Mobile
accesses of convergent customers |
|
19,484 |
|
18,933 |
|
Mobile
only accesses |
|
192,371 |
|
187,810 |
o/w |
Contract
customers |
|
76,252 |
|
73,353 |
|
Prepaid
customers |
|
135,604 |
|
133,390 |
Number of fixed accesses (2) |
|
45,128 |
|
45,767 |
|
Number of fixed retail accesses |
|
29,357 |
|
29,739 |
|
|
Number of fixed broadband accesses |
|
21,301 |
|
20,505 |
|
|
o/w |
Accesses
with very high-speed broadband |
|
8,997 |
|
7,379 |
|
|
|
Accesses
of convergent customers |
|
10,914 |
|
10,686 |
|
|
|
Fixed
only accesses |
|
10,387 |
|
9,819 |
|
|
Number of fixed narrowband accesses |
|
8,055 |
|
9,234 |
|
Number of fixed wholesale accesses |
|
15,771 |
|
16,028 |
Group total accesses (1+2) |
|
256,983 |
|
252,510 |
2019 data is presented on a comparable basis.
The key indicators by country are presented in the "Orange
investors data book Q3 2020", available on www.orange.com, under
Finance/Results/Q3 Results 2020:
https://www.orange.com/en/latest-consolidated-results
Appendix 4: 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.
EBITDAaL or “EBITDA after Leases”: operating income (i) before
depreciation and amortization of fixed assets, effects resulting
from business combinations, reclassification of cumulative
translation adjustment from liquidated entities, 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, this corresponds to the 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 effect
of 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.
Convergence
The customer base and the revenues invoiced to convergence
services customers (excluding equipment sales) was for convergent
offers defined as the combination of, at a minimum, a fixed
broadband access and a mobile contract subscribed by retail market
customers.
Convergent ARPO: the average quarterly revenues per convergent
offer (ARPO) is calculated by dividing revenues from retail
convergent services offers invoiced to 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.
Performance indicators
The fixed retail accesses correspond to the 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.
The fixed wholesale accesses correspond to the number of fixed
broadband and narrowband wholesale accesses operated by Orange.
Mobile Only services
Revenues from Mobile Only services consists of revenues invoiced
to customers of mobile offers excluding retail convergence and
equipment sales. The customer base includes customers with a
contract excluding retail convergence, machine-to-machine contracts
and prepaid cards.
Mobile Only ARPO: the average quarterly revenues from Mobile
Only (ARPO) is calculated by dividing the revenue from Mobile Only
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
Revenues from Fixed Only services include the revenue of fixed
services excluding retail convergence and equipment sales:
traditional fixed-line telephony, fixed broadband and enterprise
solutions and networks2. The customer base consists of fixed-line
telephony and fixed broadband customers, excluding retail
convergence customers.
Fixed Only Broadband ARPO: the average quarterly revenues from
Fixed Only Broadband (ARPO) is calculated by dividing the revenue
from Fixed Only Broadband 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
Revenues from IT and integration services include revenue from
unified communication and collaboration services (Local Area
Network and telephony, consulting, integration, project management
and video conferencing offers), hosting and infrastructure services
(including cloud computing), application services (customer
relations management and other application services), security
services, machine-to-machine services (excluding connectivity), as
well as equipment sales for the products and services above.
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), and (ii) fixed services to other carriers including
national networking, services to international carriers, high-speed
and very high-speed broadband access (fiber access, unbundling of
telephone lines and xDSL access sales) and the sale of telephone
lines on the wholesale market.
1 Unless otherwise stated, all changes presented
in this press release are on a comparable basis.
2 With the exception of France, where enterprise
solutions and networks are listed under the Enterprise business
segment.
- PR_Orange_3Q_2020_EN_291020
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