France Telecom-Orange reported fourth-quarter revenues down 4.5 percent from a year earlier to EUR 10.92 billion, hurt by a continued contraction in the French market. Adjusted EBITDA declined 9.7 percent to EUR 3.14 billion, and the margin was down 1.7 percent to 28.7 percent. Capex increased 3.9 percent to EUR 2.12 billion, and operating cash flow was 29 percent lower at EUR 1.02 billion.
Over the full year, cash flow of EUR 7.97 billion just met the operator's outlook for at least EUR 8 billion, and it reiterated a goal of at least EUR 7 billion for 2013. FT will pay a final dividend of EUR 0.20 per share and confirmed the total dividend will be at least the same amount in 2013 as last year, at EUR 0.80. The group’s net profit fell to EUR 820 million in 2012 from EUR 3.895 billion in 2011, hurt by some EUR 1.84 billion in impairment charges on operations in Poland, Spain and Romania and lower income from associate companies. FT targets net debt at less than 2 times EBITDA by the end of 2014, versus 2.17 at the end of last year.
For the year ahead, the company will focus on reducing costs across the group and generating at least 10 percent of revenue from mobile data services. In France, the aim is to stabilise the mobile market share above 35 percent, versus 37.3 percent in latest period, and reach 4G coverage of 30 percent of the population. The new LiveBox Play should be included in at least 50 percent of broadband sales, and the operator wants to double the number of fibre customers. In Europe, the group will focus on convergent offerings in seven countries and launch at least six network-sharing projects, while also improving its Net Promoter Score in all countries. In Africa and the Middle East, the company targets 8 million Orange Money customers by year-end versus 5.6 million in 2012, 12 million devices compatible with data services (+70%) and a 20 percent reduction in the mobile churn rate.
France Telecom finished the year with a total 230.7 million customers, up 2.3 percent from 2011. Growth was led by Africa and the Middle East, which added a net 7.0 million new mobile customers last year for a total 81.6 million, nearly half the group's mobile base. In France, the company added 100,000 mobile customers over the full year and 552,000 in Q4 alone, for a total 27.2 million.
