Orange Reports 1.8% Revenue Growth in Q3 2023, Driven by Expansion of Retail Services

Leading telecom giant, Orange Group, has reported robust financial results for the third quarter of 2023, with total revenues reaching 10,999 million euros.
Orange CEO Christel Heydemann
This figure represents a significant year-on-year increase of 1.8 percent, equivalent to 194 million euros, continuing the company’s positive trajectory in a competitive market.

The revenue growth in this quarter was largely driven by the expansion of retail services, which grew by an impressive 3.8 percent, or 304 million euros, Orange said in its earnings report.

This trend marks a notable increase from the previous quarter’s growth rate of 2.6 percent and a 2.0 percent growth rate in the first half of the year. This outstanding increase in retail services more than offset the decline in revenues from wholesale services, which fell by 6.7 percent, equivalent to -123 million euros.

In France, Orange Group experienced continued growth in retail services, excluding PSTN, at 3.4 percent, and mobile equipment sales at 3.0 percent. These increases successfully offset the expected decline in wholesale services revenues, resulting in a slight overall decline of -0.5 percent.

Meanwhile, in Europe, revenues from retail services also exhibited a positive trend, with a 2.3 percent increase. This achievement is noteworthy, given the challenging baseline effect linked to progressive price increases during 2022.

The Africa & Middle East region continued to perform exceptionally well, posting a robust growth rate of 12.2 percent. This outstanding growth was driven by double-digit increases in mobile data (+17.8 percent), fixed broadband (+17.0 percent), Orange Money (+28.2 percent), and B2B services (+20.3 percent).

Additionally, the Enterprise sector saw accelerated growth in IT & Integration services revenues, which increased by 9.3 percent, more than compensating for the structural decline in the Voice and Data legacy businesses. Enterprise revenues increased by 0.6 percent, reflecting stable mobile revenues and a slight decrease in equipment sales.

Orange Group has maintained its leadership position in convergence, boasting 11.9 million convergent customers worldwide, representing a 1.0 percent increase. Orange Group also continued its commercial momentum in mobile contracts and very high-speed fixed broadband accesses, further strengthening its market presence.

Orange Group also reported a significant year-on-year reduction of 7.0 percent in eCAPEX, totaling 1,597 million euros in the third quarter of 2023, in line with the objective of substantial reduction for the year as a whole.

As of September 30, 2023, Orange had connected 70.0 million households to Fiber-to-the-Home (FTTH) worldwide, marking an impressive 11.9 percent year-on-year growth. The FTTH customer base also expanded to 15.0 million, a growth rate of 13.5 percent, emphasizing the company’s commitment to enhancing high-speed broadband access for its customers.

These financial results indicate Orange Group’s resilience and success in a dynamic and competitive telecommunications landscape, further reinforcing its position as a global leader in the industry. Orange continues to focus on providing innovative and high-quality services while maintaining its financial stability and growth.