France Telecom has forecast a stable gross operating margin in 2008, continuing its performance from 2007. The French operator reported a margin of 36.1 percent, up 0.2 points from 2006, on sales of EUR 52.959 billion for the year, up from 51.702 billion in 2006. Gross operating profit rose 3.4 percent on a comparable basis to EUR 19.1 billion, while its net result jumped to EUR 6.3 billion from EUR 4.1 billion, thanks to one-time tax benefits. The company expects its main European markets to show "moderate growth" this year, while "favourable trends" are expected to continue in emerging markets. In addition to a stable margin, the goup forecast organic cash flow of over EUR 7.8 billion this year and capital spending at 13 percent of revenues. In 2007, cash flow reached EUR 7.8 billion and capex was at EUR 7.0 billion, or 13.2 percent of sales.
In the fourth quarter, France Telecom reported revenues fof EUR 13.539 billion, up 3.5 percent on a comparable basis, while gross operating profit rose to EUR 4.605 billion from EUR 4.397 billion a year earlier. Revenues at the Personal business increased to EUR 7.467 billion from EUR 7.710 billion, while sales from Home servcies rose to EUR 5.831 billion from EUR 5.740 billion. Enterprise sales increased to EUR 2.007 billion form EUR 1.979 billion.
