(AOF) – At the dawn of the great round ball mass in Qatar (November 20-December 18), Orange range and its agency Marcel are joining forces with the French Football Federation. The goal: to raise awareness among the French, by inviting them to bring their old phones back to the Orange store, in order to give them a second life. This campaign, produced by Nan for Loveboat (Firm Studio) in the Clairefontaine locker room, contains a one-minute video broadcast on YouTube, and short formats for social networks, available since November 2.
To accompany this operation, Team Orange Football is offering supporters of the French team the real old phones of Presnel Kimpembe, Ousmane Dembelé and Matteo Guendouzi, thanks to a game to be found on the social networks of Team Orange Football.
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Key points
– Telecom operator born in 1991 number 1 in Europe serving some 260 million customers including 46 million fixed broadband homes and 238 million mobile subscribers;
– Activity of €45.5 billion, structured in 6 main branches: France for 44%, Europe (Spain, Belgium, Luxembourg, Moldova, Poland, Romania and Slovakia) for 25%, Africa-Middle East for 14%, business services for 18% then international operators and shared services as well as mobile financial services (Orange Bank);
– Economic model based on 3 pillars: “premium” positioning compared to the competition, convergent offers and growth of the IT offer, including cybersecurity;
– Strong presence of the State in the capital (22.95% of the shares and 29.54% of the voting rights), Jacques Aschenbroich being chairman of the board of directors of 7 members and Christel Heydemann managing director from May 19 ;
– Controlled financial situation with a debt leverage of 1.91 at the end of June.
Challenges
– “Engage 2025” strategy aimed at becoming the reference in 3 inclusive businesses – digital centers, social offers and smartphones at affordable prices:
– increase connectivity with 5G and fiber, i.e. 68 million households connected and, for progress, 65 million in 2023,
– accelerate growth in Africa-Middle East, at 5% per year, including Money Bank,
– put artificial intelligence and data at the heart of digitization,
– cost reduction of €1 billion by 2023, operating margin up by 2 to 3% per year;
– Innovation strategy focused on network intelligence, operational efficiency, customer experience and sustainability of data and artificial intelligence uses and rich in a portfolio of + 9,000 patents:
– implementation of the 5G technical infrastructure in Europe in 2022 and preparation of self-adaptive networks,
– co-innovation with + 60 accessible APIs, the Datavenue platform and dedicated support with Art Factory, Orange gardens, etc. and co-construction of offers with customers in the Orange Lab,
– academic and industrial research partnerships in France and Europe,
– support for 500 start-ups in the Orange Fab network
– Orange Ventures venture capital fund endowed with €350 million;
– Environmental strategy aiming for zero carbon from 2040 via:
– the circular economy throughout the process and uses,
– the Orange nature carbon fund,
– the Padus Lab dedicated to the energy efficiency of networks and data centers,
– the launch of social and environmental impact loans;
– Enhancement of assets and strengthening of leadership in fiber infrastructure via Orange Concessions in France, TOTEM, a structure bringing together the “high points” of the operator in France and Spain and via Fiberco in Poland;
– Consolidation of Spanish activities in a joint company with Orange and Masmovil;
– Continued market share gains in Europe and Africa, the 1st engine of growth;
Challenges
– Impact of inflation offset by the Scale Up program;
– Delay in the recovery of the Business segment, a “priority” for the group;
– Increase in energy: total coverage in Europe in 2022 and at +90% in 2023;
– After virtually stable revenues and operating profit, confirmation of the 2022 objective of stable operating profit, Capex of less than €7.4 billion and a leverage effect of 2;
– 2022 dividend forecast at €0.7, with an installment of €0.30 in December.
End of the price drop
Thanks to the price war, French consumers have benefited from internet prices that are among the lowest in Europe. But gradually, subscription prices are increasing. According to the telecoms authority (Arcep), in 2021 they increased by 3.1% for mobile and 5.1% for fixed. If the current inflationary context can explain this rise in prices, it is not the only reason. All players are indeed seeking to restore their margins. They have already succeeded in outsourcing part of their capital expenditure related to the deployment of their fiber and mobile infrastructures (4G and 5G). Now they have to increase their income. This is an important issue in order to benefit from the development of their performance. Generating a satisfactory level of available cash (free cash flow) also allows them to benefit from attractive financing conditions, in a sector that requires substantial investments. Investments in the sector almost reached 15 billion euros in 2021, a historic level. The increase has reached almost 50% since 2017.