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Orange's (ORAN) Revenues and EBITDA Increase Y/Y in Q3

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OrangeS.A.ORAN recorded revenues of approximately $11,183 million in the third quarter of 2016, up 0.8% year over year. The impressive result came primarily on the back of strong performance in high-speed broadband business and convergence of customer base.

Segment wise, Mobile Services revenues totaled approximately $4,890 million, up 0.4% year over year. Enterprise & International carrier and Shared services revenues came in at $1,931.5 million, down 0.6%. Fixed services revenues were $3,647.5 million, up 0.5%. Mobile Equipment sales reached $491.8 million, up 12.6% and Other revenues totaled $222.1 million, up 4.6%.

Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) grew 1.6% year over year to approximately $3,896.6 million. Quarterly EBITDA margin was 34.8% compared with 34.6% in the prior-year quarter. In the reported quarter, capital expenditure was around $1,696.4 million, up 0.5% year over year.

Orange competes with large telecom operators like Telefonica SA TEF and Vodafone Group plc. VOD in Europe, Latin America and Africa. Orange currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Revenues by Key Markets

In the reported quarter, revenues in France, the operator's largest market, fell 0.6% year over year to approximately $5,165.2 million. Revenues in Spain surged 7.8% year over year to around $1,395.3 million. Revenues in Poland totaled around $711.7 million, dipping 3.9%. Revenues from Belgium & Luxembourg were $336.9 million, inching up 1.7% year over year while the same from Central Europe increased 0.8% to approximately $451.8 million.

In Africa and the Middle East, revenues grew 2.5% to $1,485.2 million. Revenues from International Carriers and Shared Services decreased 4.7% year over year to approximately $494 million. In the Enterprise segment, revenues increased 0.7% year over year to around $1,697.5 million.

Subscriber Trends

As of Sep 30, 2016, Orange had 255.515 million subscribers (excluding MVNOs) across its operating territories, down 3% from the year-ago quarter. The mobile customer base (excluding MVNOs) dropped 3.6% to 194.458 million. MVNO subscriber base in Europe was 4.657 million, up 18.1% year over year.

Subscribers of broadband services increased 0.7% to 18.059 million. IPTV and satellite TV customers rose 7.1% to 8.2 million. VoIP customers totaled 14.13 million, up 6.2%. IP VPN access lines for enterprise customers were 0.351 million, up 0.6% year over year.

Recent Development

In Sep 2016, Orange has teamed up with the U.S. telecom behemoth AT&T Inc. T on open source initiatives in order to accelerate the standardization of software-defined networking (SDN) and network function virtualization (NFV). In relation to this, AT&T declared Orange as its first telecom partner to test its open-source Enhanced Control, Orchestration, Management, and Policy (ECOMP) platform.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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