Satisfied with Orange management. The operator is in line with its 2023 financial objectives. For the third quarter of 2023, its turnover stands at 10.1 billion euros, up 1.8% year-on-year. Growth that the group sought outside of France. Revenues from the Africa and Middle East region increased by 11.1%, thanks in particular to the success of the Orange Money money transfer and mobile payment service (+28%).
On its domestic market, Orange, on the other hand, is struggling to turn things around with another quarter in the red. The decline of 0.5 point follows declines of 1.1% in 2022 and 1.5% in the first half of 2023. The Lead the future strategic plan which aims to refocus the operator on its core business and to promote However, its strengths seem to be paying off.
At the commercial level, the group has visibly overcome the repercussions of the increase in its prices decided at the start of the year. Orange France certainly lost some 31,000 fixed broadband customers overall but gained 259,000 new fiber optic subscriptions with higher profitability. Mobile sales are also positive with a balance of 83,000 subscribers for a turnover of 11.9%, up one point.
Another encouraging sign: the recovery of the business division. Orange Business turnover increased by 0.6%. The growth in IT and integration services (+9.3%) partly offsets the slow erosion of traditional activities in voice and data.
To carry out this change, a volunteer departure plan was initiated, associated with a training and retraining program to direct 5,000 employees towards the more promising professions of AI, the cloud or cybersecurity. While Risk&Co’s cyber activity should escape it according to The echoesOrange Cyberdefense remains attentive to market opportunities.
Consolidation in Spain not in France
On the occasion of the publication of these quarterly results, Christel Heydemann, Managing Director of the Orange group (photo) reviewed the “hot” topics of the moment. She returned to the controversy arising from the comments of the boss of Orange France casting doubt on the possibility of connecting 100% of French people. A highly political objective.
“We know our commitments », she delayed, while pleading for an adaptation of the system in order to give priority to individuals who really request fiber. The setbacks of Altice also revive the old sea serpent of a transition from four to three operators on the French market with the possible sale of SFR. “ Given its leadership position in France, Orange cannot be the main player in consolidation », recalled Christel Heydemann.
Orange has its eyes turned more towards Spain where it is awaiting the green light from Brussels to seal its union with MasMovil. While negotiations between the two operators began in March 2022, the anti-trust procedure is dragging on. The group hopes for approval from the European Commission by the end of the year in order to finalize the operation in the first quarter of 2023.
“Absence of industrial project”
In a joint press release, the CFE-CGC union of Orange and ADEAS (Association for the Defense of Savings and Employee Shareholding) took issue with the strategy followed by the current management. “ Quarter after quarter, the “Lead to the future” plan is a failure! The absence of industrial projects and growth drivers are at the origin of this decline which is confirmed quarter after quarter. »
For both organizations, “ the rise in social tensions and staff concern illustrate the absence of a plan for the future », referring to the voluntary departure plan within the division. “ It is striking to note that La Poste’s turnover in IT services will exceed that of Orange Business in the coming months. »
Finally, the press release criticizes Orange’s dividend policy – a payment of 0.72 euros per share will be proposed to the 2024 General Meeting of Shareholders – which “hasdries up Orange’s ability to make external acquisitions allowing it to add value to its assets.