(Updated with details)
PARIS, October 25 (Reuters) – Orange on Tuesday reported a 0.2% increase in its key profitability indicator in the third quarter, thanks in particular to its program of net savings in indirect costs “Scale Up” and to an unexpected return to growth in Spain.
Its EbitdaaL (EBITDA after leases, operating income taking into account the amortization of fixed assets, the debt charge or even any provisions for litigation, in particular) stands at 3.58 billion euros, in line with expectations of 3.586 billion euros, according to a consensus of 16 analysts compiled by the company.
The telecoms operator, whose revenues have recently been driven by momentum in Africa and the Middle East, confirmed that it sees the possibility of a recovery in profits in Spain next year, where a race for toll-free offers on the mobile telephony market has severely affected activity.
The group also confirmed its objectives for the full year, in particular growth in EbitdaaL of between 2.5% and 3%.
“We are confident in the acceleration of EbitdaaL in the fourth quarter thanks to the reversal of base effects and a commercial performance which should remain solid during the end-of-year holiday period”, underlines the CEO of Orange, Christel Heydemann, quoted in the group press release.
The Orange title fell by 2.73% at 08:00 GMT on the Paris Stock Exchange.
Sales in Spain, Orange’s second market, returned to growth for the first time since the first quarter of 2019, gaining 0.2% in the third quarter, contrary to analysts’ expectations, which had forecast a 2.8% drop. over the period.
The telecom operator’s turnover amounted to 10.82 billion euros, up 1.0% compared to the same period a year earlier.
Sales in France, where Orange generates more than 40% of its turnover, fell by 1%.
Orange will unveil its next strategic plan when publishing its annual results on February 16.
The group also confirms the payment of an interim dividend for 2022 of €0.30 per share in cash, scheduled for December 7, 2022 and announces that it will propose at the 2023 general shareholders’ meeting the payment of a dividend of 0.70 euro per share for the 2022 financial year. (Written by Myriam Rivet, French version Kate Entringer, edited by Nicolas Delame)