Orange to increase dividend after growth in FY results

News General France 23 FEB 2017
Orange to increase dividend after growth in FY results

Orange said it plans to pay a higher dividend for 2017, after reporting sales growth and better profitability for Q4 and 2016. The company proposed a dividend of EUR 0.65 per share for 2017, compared to EUR 0.60 in 2016, to reflect the steady progress it's made since 2015, said CEO Stephane Richard. Orange expects its investments in fibre and LTE and focus on cost reductions will support further growth in adjusted EBITDA in 2017.

Last year, adjusted EBITDA rose 2.1 percent to EUR 12.682 billion, helped by a reduction in staff numbers and revenues up 1.7 percent to EUR 40.918 billion. The margin improved slightly to 31.0 percent. Net profit rose 10.3 percent to EUR 3.263 billion, as the gain on the sale of its stake in EE was offset in part by a reduction in the value of the stake in BT received as partial payment. 

Orange increased capital expenditure by 7.4 percent to EUR 6.971 billion in 2016, led by higher spending on fibre expansion and the launch of Orange Bank. The amount was equal to 17.0 percent of revenue compared to 16.1 percent in 2016. The company reduced net debt to EUR 24.44 billion at year-end, equal to 1.93x adjusted EBITDA.

In the fourth quarter, revenues rose 1.2 percent to EUR 10.516 billion, and adjusted OIBDA increased 3.4 percent to EUR 3.172 billion. The margin improved to 30.3 percent from 29.5 a year ago. Organic sales rose 1.0 percent, improving from a 0.8 percent annual rate in Q3. 

Spain led the increase with 7.9 percent higher sales in Q4, led by growth in fibre, pay-TV and mobile, while Poland also returned to growth of 1.9 percent, Belgium and Luxembourg strengthened to growth of 2.0 percent, thanks to expansion in fixed, and the rest of Europe grew by 2.6 percent. Comparable sales in France were down 0.8 percent, hurt by the cuts to roaming prices, and in Africa and the Middle East, revenue rose just 1.6 percent, due to weaker wholesale sales and the difficulties in DRC. 

At year-end Orange counted 201.7 million mobile customers, up 0.9 percent year-on-year on a comparable basis. This included 8.4 percent growth in the postpaid base to 69.9 million. Fixed broadband customers rose by 3.5 percent during the year to 18.3 million, including 3.3 million on fibre, up 74.9 percent. Fixed-mobile customers also rose 10.2 percent in 2016 to 9.2 million, and pay-TV subscribers increased by 6.9 percent to 8.5 million. 

Categories:

General

Companies:

Orange

Regions:

Africa,  Europe

Countries:

France

Tags:

Voice services, Data services, Financial figures, Internet Access

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