Orange Q1 EBITDA, Revenues Rise; Backs FY16 View; Stock Rises

(RTTNews) - Shares of French telecom major Orange SA (ORAN) were gaining around 3 percent in the morning trading in Paris, after the company reported Tuesday higher restated EBITDA and revenues in its first quarter. Further, the company confirmed its forecast of higher earnings for fiscal 2016 and also maintained annual dividend.

For the first quarter, restated earnings before interest, tax, depreciation and amortization or EBITDA, a key earnings metric, increased 1.9 percent to 2.57 billion euros from last year's 2.52 billion euros.

Restated EBITDA margin declined 0.4 percentage points to 25.7 percent from 26.1 percent.

On a comparable basis, restated EBITDA dropped 1.6 percent, and margin declined 0.6 percentage points.

Excluding the impact of the employee shareholding operation, restated EBITDA rose 0.3 percent and margin fell 0.1 percentage points.

First-quarter revenues were 10.01 billion euros, 3.5 percent higher than 9.67 billion euros a year ago. On a comparable basis, revenues edged up 0.6 percent.

The company's revenues from mobile services rose 0.9 percent and fixed broadband services revenues grew 4.7 percent, on a comparable basis.

In France, revenues declined 0.7 percent from last year to 4.69 billion euros, mostly related to the more pronounced decline of national roaming. Excluding that impact, the mobile services trend improved in relation to the fourth quarter. Meanwhile, fixed broadband growth accelerated, led by fibre and TV content.

In the Europe zone, revenues rose 9.1 percent, mainly as Spain resumed growth with 28.2 percent increase, after nine consecutive quarters of decline.

As of March 31, the company had 191.0 million mobile customers, a year-on-year increase of 2.9 percent on a comparable basis. The company had 20 million 4G customers at March 31, and 2.226 million fibre customers.

Africa and the Middle East mobile customers increased 2.8 percent. In France, mobile contract customers rose 9.7 percent to 24.6 million. In the Europe zone, mobile contracts were up 6.4 percent.

There were 17.8 million fixed broadband customers at March 31, a year-on-year increase of 2.9 percent on a comparable basis.

Looking forward, the company confirmed fiscal 2016 objective of higher restated EBITDA in 2016 than in 2015, on a comparable basis.

Further, Orange confirmed the payment of a dividend of 0.60 euros per share for 2015. The final dividend of 0.40 euros per share will be paid on June 23.

The company plans to pay a dividend of 0.60 euros per share for 2016. An interim dividend for 2016 of 0.20 euros per share should be paid in December.

In Paris, Orange shares were trading at 15.16 euros, up 2.57%.