Orange reported comparable sales flat year-on-year in the second quarter, at EUR 10.07 billion, as a recovery in Spain and customer growth was offset by the negative impact of the roaming price cuts in Europe and slower growth in Africa. Sales in France fell 1.7 percent on a comparable basis, also hurt by lower roaming revenue from its deal with Free, and Poland sales declined 3.5 percent. Spain grew by 6.2 percent, and Africa and the Middle East posted sales growth of 2.3 percent.
On a reported basis, sales rose 1.9 percent, and adjusted EBITDA was up 2.3 percent to EUR 3.34 billion. EBITDA was also flat on a comparable basis, excluding currency effects, divestments and acquisitions, and the margin was unchanged year-on-year at 33.2 percent.
In the first half, Orange's operating profit fell 5.4 percent to EUR 2.14 billion, amid higher depreciation and amortisation and an impairment charge of EUR 176 million in Egypt. Net profit more than doubled, to EUR 3.32 billion from EUR 1.27 billion, due to lower tax and the sale of EE.
Capital expenditure increased 7.8 percent on a comparable basis to EUR 3.17 billion or 15.8 percent of revenue. The increase was due mainly to expanding fibre and mobile broadband coverage, as well as the launch of the new Livebox in France and more data centre capacity.
Orange CEO Stephane Richard said the results in the first half confirm the company's "positive momentum" and reiterated a target for growth on a comparable basis in full-year adjusted EBITDA. The company still plans an annual dividend of EUR 0.60 per share, with 20 cents to be paid in December.
The group had 188.6 million mobile customers at the end of June, a year-on-year increase of 1.3 percent on a comparable basis and 2.5 million net additions in the quarter. Fixed broadband customers increased by 3.1 percent to 17.9 million, with 540,000 added in the quarter. The total included 2.55 million over fibre, split roughly equal between Spain and France.
