France Telecom reported fourth-quarter revenues of EUR 11.73 billion, up 4.1 percent from a year earlier thanks to positive currency effects and the takeover of Mobinil in Egypt. On a comparable basis revenues fell 0.5 percent, amid a 0.8 percent decline in France, 1.2 percent drop in Poland and 3.5 percent lower revenues from business customers. Adjusted EBITDA rose 1.5 percent to EUR 3.60 billion, but was down 3.9 percent on a comparable basis due to higher sales costs. The margin fell to 30.7 percent from 31.5 a year earlier. The figures exclude charges of EUR 422 million for staff retirement plans and EUR 547 million for restructuring the Orange sport and Orange cinema servies TV channels.
The Orange brand had 209.6 million customers at the end of 2010, up 6.0 percent from a year ago. Mobile customers, excluding MVNOs, rose by 12.5 million over the year to 150.4 million, of which 11.1 million of the new customers came from Africa and the Middle East. Poland also gained 618,000 mobile subscribers and Armenia added 403,000 new customers. Fixed broadband customers totalled 13.7 million at end-2010, after 455,000 new customers in the year, of which 274,000 in France and 188,000 in Africa and the Middle East. TV subscribers grew by 28 percent to 4.1 million.
France Telecom reported net profit for the full year of EUR 4.88 billion, up from EUR 3.40 billion in 2009 thanks to a one-time gain from the creation of the Everything Everywhere joint venture in the UK and lower tax and financing costs. The company increased capex 9.5 percent last year to EUR 5.52 billion or 12.1 percent of sales, while cash flow excluding one-time items met the group target at EUR 8.11 billion. For 2011, France Telecom forecast a slight increase in revenues on a comparable basis and excluding regulatory measures, a 1 percent point drop in the EBITDA margin as its works on defending market share and moving up the value chain. Capex is estimated at 13 percent of revenues, led by spending on fibre and mobile broadband in France, 2G and 3G expansion in Africa, submarine cables and new cloud computing services. Cash flow is again expected to at least reach EUR 8 billion for the year, and the company maintained a pledge for a dividend of EUR 1.40 per share in 2011 and 2012, the same as in 2010.
