EC Rate Cuts Sucking €1 Billion From Orange This Year
France Telecom’s half-year net income jumped 45 percent to €3.95 billion ($5.1 billion) after the telco scored a €1 billion ($1.3 billion) one-time gain from merging Orange UK with T-Mobile UK.
Otherwise, group revenue was down 2.2 percent to €22.1 billion after European regulation enforcing cheaper termination rates knocked €507 million from earnings, the telco says…
“The impact of regulatory measures for the year 2010 is estimated to be close to one billion euros” ($1.3 billion).
France Telecom (NYSE: FTE) revenue dipped in all its regional markets (France, Spain, Poland) except Rest Of World, where new Asian and Mid-East businesses meant growth from a standing start.
—The group says Orange UK Q1 net income had been €70 million before it contributed the carrier to a JV named Everything Everywhere on April 1.
—France Telecom’s customer base grew 3.8 percent to 182 million.
—Digital TV customers grew 34 percent to 3.6 million in France.
—French data income is up 21.8 percent from last year, making up 29.9 percent of income.
It’s targeting full-year income unchanged from 2009, after stripping out that expected big hit from regulatory measures.
Posted In: Money, Earnings, Companies, France Telecom, Orange
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