Wednesday, October 23, 2013

Orange wins customers but not enraie lower sales - Clubic

Posted by Ludwig Gallet Wednesday, October 23, 2013

Orange has again experienced a decline in its activity in the third quarter, including on mobile. The operator, however, gained new subscribers, thanks to the success of its Sosh packages and offers Open quadruple play.
 Orange Logo

The activity remains in Orange decline over the year. In the third quarter of 2013, the phone operator announced a turnover down 4% year on year to € 10.16 billion. A decrease of 4% compared to last year. The decrease is also observed from one quarter to the other, as he had announced sales of € 10.3 billion for the second quarter 2013.

Orange continues to point the finger at the consequences of market regulation on its business. In the first nine months of the year, he contends that this factor has sealed its turnover of EUR 684 million. However, he believes that the new lower roaming revenues, announced on July 1, unless weighed heavily on revenues.

In France, sales decreased by 4.9% year on year . The operator noted an increase in activity in Spain and Africa and Middle East. However, Orange is in decline in Poland and suffered a significant decline in sales in Belgium. Most importantly, the business segment shows a sharp decline of 7.2% year on year. On this point, Orange believes that this decline “ reflects the effect of price declines that occurred during contract renewals and the European economic environment remains difficult .”

Orange Finance T3 2013

The decline is even stronger if one is interested in pre-tax profits fell by 7% in the quarter. And the finding is no more glorious in terms of ARPU, or average annual income per subscriber, down from 12% in France over a year in the third quarter of 2013, to 303 euros. This means a decrease of 2.6% compared to the second quarter. Since the arrival of Free Mobile market, ARPU was down by 17% in total.
 Orange ARPU Q3 2013


As the customer base, the incumbent was a slight increase in the number of mobile customers, 0.5% year on year to 26.768 million. A net gain of 130,000 new customers during the period. Orange confirms indeed crossing the symbolic threshold of 20 million subscribers in France. Once again, bids Sosh still strongly driving growth of the subscriber base, with an increase of almost 19% compared to the second quarter with 1.6 million subscribers.

The first nine months of the year, the wireline business has declined compared to 2012, by 3.6%. Orange may rest on the success of its Open quadruple play, which now totals about 4.27 million customers. They now account for 31% of the total base of Orange fixed line subscribers broadband. Orange also totaled 273,000 customers in the fiber, or 34,000 additional customers in the second quarter.

 Orange customer base Q3 2013


Orange wishes to recall that the fierce competition in the market continue to weigh on results next year. But in a statement, the group’s CEO, Stéphane Richard, welcomed foremost the success of the policy of reducing the costs incurred by the operator. “ Our annual target of € 600 million in savings is already reached, a third of lower overhead . ‘

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