(Reuters) – Telecommunications operator Orange reported earnings before interest, taxes, depreciation and amortization after lease (EBITDAaL) – its key profitability indicator – in line with expectations on Tuesday, citing rising prices and of the implementation of its recovery plan.
EBITDAaL increased by 1.4% over the period, reaching 3.596 billion euros, compared to expectations of 3.59 billion euros according to a consensus provided by the group.
On the Paris Stock Exchange, Orange shares were stable, dropping 0.09% to 10.75 euros at 07:50 GMT.
European telecommunications groups have increased their prices to reduce the impact of inflation on their results.
“In terms of price increases, we continue our value strategy. We continue to prioritize discipline on promotions,” said Laurent Martinez, chief financial officer, in a call with reporters.
Orange’s turnover amounted to 10.99 billion euros, up 1.8% compared to last year on a comparable basis and in line with analysts’ expectations.
Quarterly revenue in France, Orange’s biggest market, fell 0.5% to 4.44 billion euros due to a drop in services to operators. Retail services partly offset these losses, the company said.
Revenue in Africa and the Middle East increased by more than 12%.
The group also said it was confident the European Commission would approve a proposed merger of its Spanish unit and peer MasMovil towards the end of the year, allowing the deal to be finalized in the first quarter. of 2024.
In July, Orange said it expected the transaction to be completed by the end of 2023.
The European Commission has halted its in-depth investigation into the merger, a procedure that can be activated if the parties fail to provide key information requested from them in a timely manner.
Orange confirmed its annual objectives with EBITDAaL expected to show “slight growth” and organic cash flow from telecoms activities of at least 3.5 billion euros.
The group also reported a level of investments (eCAPEX) of 1.60 million euros for the quarter, in line with its substantial reduction target for the year, according to the telecommunications operator. The consensus was for an eCAPEX of 1.64 million euros.
(Report by Gaëlle Sheehan and Diana Mandiá, by Gaëlle Sheehan, edited by Blandine Hénault and Kate Entringer)
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