France Telecom-Orange reported first-quarter revenues up 2.5 percent from a year earlier to EUR 11.23 billion. Sales were helped by the increased stake in Mobinil in Egypt, a return to growth of 4.0 percent in Spain, and continued double-digit growth in most emerging markets. The operator said in saw strong sales in mobile in Europe and a recovery in the Enterprise market, although some markets such as Egypt, Cote d'Ivoire and Romania suffered from difficult local conditions. In France sales fell 2.6 percent, hurt by tough competition and regulatory effects. On a comparable basis, group sales were down 1.4 percent, while excluding regulatory effects, revenues rose 0.4 percent. EBITDA fell 1.3 percent to EUR 3.73 billion, and the margin was down 1.3 percent points to 33.3 percent. France Telecom said a half-point drop, or around EUR 70 million, was due to the increased VAT on TV services in France, while 0.2 point was due to the difficulties in Egypt. High demand for smartphones, particularly in France and Spain, also put pressure on the margin due to higher sales and marketing spend. Capex increased 28.3 percent from a year ago to EUR 1.08 billion. The company finished March with a total 215.89 million customers, up from 209.57 million three months earlier. The mobile customer base rose by 6.3 million in the quarter to 156.73 million, and internet customers increased by 145,000 to 14.21 million. Fixed lines, including copper and fibre, fell to 44.94 million from 45.07 million at the end of 2010. The company said the results are in line with its outlook for the full-year 2011 and medium-term plans.
