Orange reported continued pressure on results in the fourth quarter, but said it aims to stabilise its EBITDA margin and invest in new networks in 2014. Revenues for the three months December fell 6.4 percent year-on-year to EUR 10.216 billion, and adjusted EBITDA was down 8.6 percent to EUR 2.867 billion. The lower results were due to regulatory measures, negative currency effects and price pressure in most of its European markets. The EBITDA margin was at 28.1 percent, down 0.7 percent points year-on-year.
Over the full year, Orange posted sales down 5.8 percent and EBITDA fell 8.2 percent. Net profit nearly doubled, to EUR 2.133 billion from EUR 1.104 billion, thanks to lower impairment and depreciation charges. Capital expenditure dipped 3.2 percent to EUR 5.631 billion or 13.7 percent of revenues. Operating cash flow fell 11.4 percent to EUR 7.019 billion, but met the company's outlook for at least 7 billion. Net debt was up slightly at EUR 30.726 billion at year-end, equal to 2.37x EBITDA.
Orange will pay a final dividend of EUR 0.50 per share for 2013, but said the dividend will fall to EUR 0.60 in 2014 from a total EUR 0.80 last year. The company expects revenues to remain under pressure this year, while adjusted EBITDA is forecast flat to lower, at EUR 12.1-12.6 billion. Excluding the sale of its operations in Dominican Republic and taking into account continued cost reductions, Orange expects it EBITDA margin to stabilise this year, after reaching 30.9 percent in 2013.
The group said it will also maintain its "ambitious" investment in broadband networks, while continuing with its segmented, "creative" offers to address the challenging European market. The company may also pursue selective acquisitions in markets where it's already active. It did not give a target for cash flow this year, but said net debt should be closer to 2.0x EBITDA by the end of 2014.
