Orange trims FY outlook as revenues, EBITDA turn lower in Q2

Nieuws Algemeen Frankrijk 30 JUL 2020
Orange trims FY outlook as revenues, EBITDA turn lower in Q2

Orange said its business remained resilient in the second quarter, despite the global health crisis. Growth in France and the Middle East helped offset weakness in other European markets and the enterprise segment. Nevertheless, underlying results were slightly lower, and the French operator downgraded its full-year forecast for EBITDA, as the coronavirus weighs on results. 

Quarterly revenues fell 0.1 percent to EUR 10.375 billion. France grew by 2.7 percent, and Africa & Middle East revenue rose 1.3 percent on an organic basis, offsetting a 6.8 percent fall in Spain, 3.6 percent decline in the rest of Europe and 3.3 percent lower Enterprise revenues. EBITDAaL showed a 1.9 percent fall to EUR 3.312 billion, impacted by the cost of health measures, the decrease in roaming and a slight increase in provisions for bad debts. On an organic basis, revenues were down 0.4 percent and EBITDA fell 1.8 percent. 

Over the first half of the year, revenues were still up 1.0 percent to EUR 20.769 billion, while EBITDAal fell 0.7 percent to EUR 5.914 billion, and net profit dropped to EUR 1.016 billion from EUR 1.137 billion. Orange said it now expects an around 1 percent fall in full-year EBITDAal due to the impact of Covid-19, compared to its previous forecast for a "flat positive" result. 

Capex declined 9.9 percent to EUR 3.156 billion in the first half due to a significant increase in co-financing in France and asset disposals, as well as slower work due to the coronavirus restrictions. As a result, operating cash flow (EBITDAal - capex) rose 12.2 percent year-on-year to EUR 2.759 billion in the first half. Organic cash flow from telecoms activities was EUR 255 million, an increase of EUR 163 million from the year-earlier period. Orange still expects stable operating cash flow and an organic cash flow of at least EUR 2.3 billion over the full year. 

Orange will pay an interim dividend of EUR 0.30 per share. The company said it still aims for a full-year pay-out of 70 cents, but a final decision on this will be taken at a later date. 

Categories:

Algemeen

Companies:

Orange

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Afrika,  Europa

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Frankrijk

Tags:

Financial figures, Wireline, Wireless

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