Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Orange SA (ORANY, Financial) reported strong Q3 results, confirming their full-year guidance.
- The Middle East and Africa region delivered its sixth consecutive quarter of double-digit growth.
- Orange SA (ORANY) successfully demonstrated technological leadership during the Paris 2024 Olympics, enhancing brand image.
- The company achieved a solid commercial performance in France, with mobile net adds of 83,000 and fixed broadband net adds returning to growth.
- Convergent revenues increased by almost 5%, driven by robust growth in convergent ARPU and low customer churn.
Negative Points
- Orange Business revenues decreased by 2.6% due to a decline in voice services and complex IT market conditions.
- Wholesale revenues continued to decline, impacting overall revenue growth.
- The competitive environment in France remains challenging, particularly in the low-end mobile market.
- Orange SA (ORANY) faces risks in the Middle East and Africa, although mitigated by a diversified country portfolio.
- The company is experiencing a slowdown in IT services growth in Poland, attributed to stagnation in the public sector.
Q & A Highlights
Q: How does Orange view the impact of new convergent tariffs launched by competitors on its growth strategy?
A: Christel Heydemann, CEO, stated that convergence is a core pillar of Orange's strategy, focusing on customer retention and churn reduction. The company views competitors' convergent offers positively, as they focus on increasing customer value. Orange maintains the lowest churn in the market and does not see an increase in churn due to these new offers.
Q: Can you explain the recent trends in Orange's convergence base and the strategy moving forward?
A: Jean-François Fallacher, Executive VP and CEO, noted that the convergence base saw a slight decline in net adds, but the base remains stable. The company launched new convergent offers on October 10 to stabilize the base and enhance customer value through discounts and bundled services.
Q: What are Orange's expectations regarding tax impacts in France, given fiscal tightening measures?
A: Laurent Martinez, CFO, mentioned that the budget discussions are ongoing, but the expected tax impact would be relatively limited, around EUR60 million for 2024 and EUR30 million for 2025, depending on the final outcome.
Q: How does Orange plan to address the competitive pricing environment in France?
A: Christel Heydemann, CEO, emphasized Orange's focus on value, network quality, and customer experience. The company aims to attract all customer segments with a broad portfolio and targeted offers, focusing on churn reduction and upselling to existing customers.
Q: What is Orange's strategy for fixed wireless access and its potential growth?
A: Jean-François Fallacher, Executive VP and CEO, explained that fixed wireless access is integral to Orange's strategy, especially in areas without fiber. The company launched a new 5G+ fixed wireless access offer to complement its existing 4G services, contributing to broadband net adds.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
