The lights are green for Orange and Christel Heydemann.
One year after the presentation to the markets of its “Lead the future” strategic plan aimed at refocusing the operator towards its traditional businesses, the Issy-les-Moulineaux group is publishing results this Thursday that meet its expectations in every respect.
Whether for the turnover, which stands at 44.122 billion euros (1.8%), but also its gross operating surplus after rent (Ebitdaal), which amounts to 13 billion euros ( +1.3%), as well as its net profit, which increased by 13% to reach 2.5 billion euros.
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In detail, Orange benefits in particular from its “value” strategy aimed at increasing its prices as well as the growth of its Africa Middle East zone, whose revenues increased by 11.4% last year.
The average revenue per subscriber on convergent offers (fixed + mobile) thus increased by 3.3 euros to reach 75.2 euros.
On the fixed and mobile side alone, the increases were respectively 1.3 euros and 80 cents.
Read also: Outcome in sight for the Orange-MasMovil marriage in Spain
This strategy may have eroded the operator's market share, particularly in the French market, but it was offset by the increase in revenue per subscriber at Orange.
In France, Orange's largest market, revenues still fell by 1.4% over the whole year, with a big drop in services to operators (-8.5%) which was not offset by not retail operations or equipment sales.
Merger with MasMovil in sight
Also on the good news side, Spain, a very complicated market in recent years with strong competition there, confirms its recovery, with revenues up 1.1%.
Orange is obviously counting on the merger with MasMovil to consolidate its position as second operator on site.
Brussels must give its decision on this project on February 21, which should in all likelihood be approved but subject to conditions.
Christel Heydemann's group expects to finalize the transaction at the end of the first quarter.
Orange also continues to position itself as a consolidator on a European scale, citing merger operations with Voo in Belgium and operations in Romania.
It remains to be seen whether Brussels will allow it to go even further in mergers to reduce the number of operators on the same market.
For the rest, the group confirms its financial objectives for 2024, with further slight growth in its profitability, discipline on its investments and an increase in dividends.
On the stock market, the group grew by 1.12% at the opening of the markets, proof of market confidence.
Worried unions
The unions are much more worried.
“
Two years after the arrival of the new General Management, the results are clear: Orange is broken.
Achieving objectives without ambition cannot be considered a success
,” said this Thursday morning Sébastien Crozier, president of the CFE-CGC, the operator's first union.
According to him, low growth combined with declining market shares in France makes Orange prey for players like Xavier Niel and Iliad, who have opted for a commercial strategy of blocking prices.
The one who denounced last year already at the time of the publication of the
“Lead the Future”
plan a financial logic prevailing over the industrial one, once again rails against the management of the group,
“incapable of announcing anything other than reductions in costs and Capex which foreshadow a lack of growth for tomorrow
.
For its part, the Orange ensemble union also denounced this Thursday the low increases planned for annual negotiations, as well as the slow erosion of staff numbers within the group.