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Growth in EBITDAaL and decrease in eCapex boost organic cash flow!

2022-08-03

Financial information at 30 June 2022

In millions of euros

 

2Q 2022

change

comparable

basis

change

historical

basis

 

6M 2022

change

comparable

basis

change

historical

basis

Revenues

 

10,715

(0.4)%

(1.6)%

 

21,297

0.1 %

2.1 %

EBITDAaL

 

3,314

0.5%

1.3%

 

5,934

0.7%

1.7%

Operating Income

 

 

2,420

na

na

Consolidated net income

 

 

1,467

na

eCAPEX (excluding licenses)

 

1,803

(11.1)%

(13.5)%

 

3,413

(8.7) %

(11.3) %

EBITDAaL - eCAPEX

 

1,511

19.2%

27.2%

 

2521

17.0%

26.6%

Organic cash-flow (telecom activities)

 

 

1,445

72.1%

 

The Group again confirms its financial objectives for 2022, a milestone towards the achievement of its 2023 commitments. 
▪ Revenues grew 0.1%1 in 1H 2022 and were slightly down by 0.4% in 2Q 2022, impacted by the underlying effect of fiber network co-financing received in 2Q 2021. In 2Q 2022:

- France (-2.7%) recorded solid growth in retail services of 1.4% (+3.4% excluding PSTN).
- Europe (-0.9%) improved (compared with -2% in 1Q 2022), due to strong growth in Poland (+3.4%)     and Belgium (+4%) and the recovery under way in Spain (-4%).
- Africa & Middle East (+7.2%) continued to deliver strong growth.
- Enterprise recorded a decrease (-1.1%), as the structural decline in legacy Voice and Data activities outweighed the growth drivers of IT & integration services.

▪ EBITDAaL increased 0.5% in 2Q 2022 (+4.5% excluding co-financing). The EBITDAaL margin from telecom activities grew for the second consecutive quarter. EBITDAaL increased by 0.7% in 1H, driven by Africa & Middle East (+11.6%) and Europe (+0.6%), despite the steep decline in Enterprise 
(-25.3%). France, which decreased by 0.9% overall, recorded growth of 3.6% excluding co-financing. In line with our year-end targets, EBITDAaL growth is expected to accelerate in 2H, mainly due to the reversal of underlying effects (co-financing and the employee shareholding program).

▪ Operating income was +2,420 million euros at 30 June 2022 (compared with an operating loss of -1,752 million euros on a historical basis at 30 June 2021, due to the effects of the goodwill impairment in Spain).

▪ Consolidated net income was 1,467 million euros, up 4,071 million euros on a historical basis. Excluding the goodwill impairment in Spain, it would still be up 369 million euros.

▪ eCAPEX decreased 11.1% in 2Q 2022. In 1H as a whole, eCapex reached 3,413 million euros, confirming the decrease, albeit of a lesser magnitude, expected for the year.

▪ Organic cash flow from telecom activities grew strongly, reaching 1,445 million euros at 30 June
2022 (+605 million euros compared with 30 June 2021 on a historical basis).
Unless otherwise stated, the changes presented in this press release are on a comparable basis.

The Group has again confirmed its financial objectives for 2022, a milestone towards the achievement of its 2023 commitments. 

Commenting on the publication of these results, Christel Heydemann, Chief Executive Officer of the Orange group, said: “In an environment still marked by the health crisis, geopolitical uncertainty and the effects of inflation, Orange has once again proven its resilience in the first half of 2022 both in terms of commercial momentum and in respect of its main financial indicators”.

The full Press release is  available here 
 

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