Orange Q3 2023 Profit Report

By Leo Marchandon and Michal Aleksandrowicz

(Reuters) – Orange reported its third-quarter profit on Thursday, surpassing market expectations thanks to strong performance in its Africa and Middle East operations, and reaffirmed its full-year guidance.

Group revenue grew by 1.6% compared to Q3 2023, slightly above consensus, with Africa & Middle East contributing significantly with a 10.5% increase, marking six consecutive quarters of double-digit growth. Revenue in France rose by 1.3%.

The French telecom operator reported EBITDAaL of 3.35 billion euros ($3.61 billion), exceeding analysts' forecast of 3.34 billion euros.

Orange, as the market leader in France, gained a net 83,000 mobile customers this quarter, alongside 6,000 new fixed broadband customers and 259,000 additional fiber customers.

Competitors Bouygues and Iliad recently introduced cheaper plans, but the company has not yet assessed their impact, according to CFO Laurent Martinez during a post-earnings call.

In late July, Orange announced a non-binding agreement with Vodafone Spain to establish a joint fiber-to-the-home (FTTH) company serving 4 million customers. El Confidencial reported in mid-October that Orange is considering selling its stakes in this venture. Martinez expects the deal to close by the end of H1 2025, with Orange retaining 50%, Vodafone Spain 10%, and seeking a financial partner for the remaining 40%.

($1 = 0.9267 euros)