Orange expects investment to peak at EUR 7.4 bln in 2018, before declining from 2019

Thursday 7 December 2017 | 10:45 CET | News

Orange reaffirmed the priorities outlined in the ‘Essentiels2020’ five-year strategy, launched in March 2015, and provided more detailed financial targets for the years to come at its Investor Day in London. The group said it plans to reach a peak investment spend of EUR 7.4 billion in 2018 and expects this to decline from 2019. It is guiding for adjusted EBITDA growth of around 2 percent in 2017, with an acceleration in 2018 and positive growth across 2019 and 2020.

Orange is also targeting a return to growth in its operating cash flow for 2017, followed by an improved growth rate in 2018 and continued growth in 2019 and 2020. Additional cost reductions will contribute to better operating ROCE for the group’s telecoms activities in 2017 and 2018. As for shareholders, the annual payment of a dividend of at least EUR 0.65 per share has been confirmed for 2017 and should also apply to 2020.

Orange reaffirmed its commitment to fibre investment in its key markets and said that its French business now expects revenues for wholesale access to its fixed-line networks to peak in 2020 rather than in 2018.

The FTTP roll-out in France is ahead of schedule, said the company, as the footprint of 20 million premises in high-density and medium-density population areas will be reached by 2021, rather than 2022. Looking at public-initiative networks (known as RIP, Reseaux d'Initiative Publique), its share of contract wins is expected to account for 30 percent of the infrastructure deployments across RIP areas.

In Spain, Orange’s fibre network is targeting a footprint of 16 million households by 2020, up from 14 million initially planned, as this previous target is now on track to be achieved in 2018.

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