(Reuters) – Telecommunications operator Orange on Thursday reported earnings before interest, taxes, depreciation and amortization after lease (EBITDAaL) – its key profitability indicator – for 2023 slightly above expectations, citing a strong performance in Europe and an effort on prices in a less dynamic market.

Telecommunications groups have increased the price of their subscriptions in 2023 in order to offset the impact of inflation in a sluggish and highly competitive market.

“We are achieving all of our financial objectives for the year 2023. These results demonstrate our ability to execute and the progress of our major strategic projects,” said Managing Director Christel Heydemann in a press release.

On the Paris Stock Exchange, Orange shares rose 1.11% to 10.75 euros at 09:57 GMT.

EBITDAaL increased by 1.3% on a comparable basis to 13.04 billion euros, exceeding analysts’ forecasts of 13 billion euros, according to a consensus compiled by the company.

In Europe, it jumped 5.8%, driven by Spain, Orange’s second-largest market, which recorded year-on-year growth for the first time since 2018. Africa and the Middle East posted strong growth in both revenue at 11.4% and EBITDAaL at 12.7%, said Christel Heydemann.

In France, Orange saw its EBITDAaL fall by 3.6% to 6.36 billion euros.

For 2024, the group expects single-digit EBITDAaL growth, with organic cash flow of at least €3.8 billion.

Orange will propose a dividend of 0.72 euros per share for 2023, and has set a minimum dividend target of 0.75 euros per share for the 2025 financial year.

The telecom operator reiterated its confidence that the European competition regulator would approve the Spanish merger of Orange and MasMovil.

Brussels extended the deadline for the decision until February 22. Orange said it hoped to complete the transaction by the end of March.

(Reporting by Diana Mandiá in Gdansk; by Nathan Vifflin, editing by Kate Entringer)

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