Orange targets return to EBITDA growth in 2016

Nieuws Algemeen Europa 16 FEB 2016
Orange targets return to EBITDA growth in 2016

Orange stabilised its adjusted EBITDA in 2015 and said it aims for a return to growth in 2016, supported by continued cost reductions. The company reported a result of EUR 12.43 billion for the year, up 0.1 percent on an organic basis and 1.9 percent higher on a reported basis. The figure was better than Orange's outlook for EBITDA of at least EUR 12.3 billion. Revenues were still down 0.1 percent on an organic basis to EUR 40.24 billion, amid declines in France, Spain and Poland. Net profit more than doubled, to EUR 2.96 billion from EUR 1.23 billion, thanks to lower taxes and results from the UK venture EE. 

Orange noted that it's ahead of schedule on its Essentials2020 plan presented earlier this year, with EBITDA stabilised a year of ahead of schedule and growth expected already next year. The company attributed the improved results to investments in networks, with capex up 9.3 percent to EUR 6.49 billion or 16.1 percent of revenue in 2015. The company also confirmed its annual dividend at EUR 0.60 per share and said it aims to pay the same amount next year. Orange said its talks with Bouyges Telecom an a potential merger in France are ongoing and will take several weeks yet to reach an agreement. 

For the fourth quarter of 2015, Orange reported adjusted EBITDA up 1.4 percent year-on-year on an organic basis to EUR 3.063 billion, and revenues rose 0.1 percent to EUR 10.395 billion. The decline in sales slowed to just 0.1 percent in France and 1.0 percent in Spain, while Poland still saw revenues down 5.1 percent, and the Enterprise business contracted by 0.4 percent on an organic basis. 

Orange said the underlying growth in Q4 came from improved trends in mobile services, with smaller declines in France and Poland, Spain returning to growth and higher revenues in Belgium, eastern Europe, the Middle East and Africa. Orange ended the year with 201.2 million mobile subscribers, up 3.2 percent from 2014, and 4G customers more than doubled to 18 million. 

Categories:

Algemeen

Companies:

Orange

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Afrika,  Europa

Tags:

Voice services, Data services, Financial figures, Internet Access, M&A buyouts & divestments

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