Earnings: Orange UK Revenues Hit By Exchange Rates; Mobile Broadband Surges
France Telecom (NYSE: FTE), Orange UK’s parent company posted earnings today, and reported that annual revenues at the Personal Communications Services UK unit, which operates under the Orange brand, were down 8.5 percent to €5.689 billion (£5.07 billion). Excluding the negative impact of exchange rates, revenues were up 6.3 percent.
Like France Telecom’s other mobile units, Orange UK was saved by the dongle and texting. Data services saw a 14 percent rise in annual revenues, driven by text messaging and data services. Orange UK saw an 86 percent surge in mobile broadband customers, climbing to 3.3 million. Data services generated a 23.3 percent share of network revenues in 2008, compared with 21.4 percent in 2007.
Revenues in the fourth quarter at PCS UK were down 15.3 percent to €1.357 billion (£1.21 billion). Again, unfavorable exchange rates took their toll, wiping away €246 million (£219 million). Stripping out the negative exchange rate impact, revenues were stable year on year. The fourth quarter saw Orange UK add 180,000 new customers, and a 9 percent growth in data services revenues. Voice revenues meanwhile, remained stable.
Earnings Highlights:
— Mobile customer net adds: Orange UK mobile unit added 353,000 customers in 2008, a 2.3 percent growth compared to 2007. Despite not having a hit handset, it managed to grow its share of contract customers, whose numbers rose by 10 percent over the year. Contract customers represented 38.6 percent of the total as of 31 December 2008, compared with 35.9 percent as of 31 December 2007.
— Demand for broadband leveling off: Annual revenues at its Home Communications Services unit were down 10.5 percent compared to last year, which France Telecom blamed on a drop in narrowband internet and portals, and to a lesser extent, the leveling off of consumer demand for broadband. Orange had a total of 1 million ADSL subscribers as of 31 December 2008, a 12 percent drop compared to 2007.
Posted In: Money, Earnings, Companies, France Telecom, Orange
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