Orange continues investment in network in Q2

Orange Chairman and CEO Stephane Richard
Telecom network operator Orange said it has increased its Capex (capital expenditure) to 3.167 billion euros (+7.8 percent) in the first half of 2016.

The Capex of Orange — in line with the Essentiels2020 strategic plan — represented 15.8 percent of revenues.

Orange has made investment in high-speed fixed and mobile broadband such as fiber, 4G and 4G+ to boost data business. Orange also made incremental increase in its investment towards datacenters in Europe.

Orange Group CEO Stephane Richard said: “In one year we have doubled both our fiber customer base to 2.5 million customers as well as our 4G customer base, with nearly 23 million customers. This good performance underscores the success of our Essentials2020 strategy of investment in fiber and 4G networks.”

As a result of investment program, Orange’s 4G customers increased 1.9 times to 22.7 million and fiber customers increased 2.1 times to 2.5 million in Europe.

Orange France has 9.4 million 4G customers at 30 June 2016 (+1.7 times). Orange added 93,000 net fixed broadband customers in the second quarter.

Orange Spain saw 197,000 net additions in the second quarter and 1.217 million customers at 30 June 2016. 4G also grew rapidly with 6.4 million customers at 30 June 2016 (x 1.8 year on year on a comparable basis).

Mobile data services revenues rose 44 percent in Africa and the Middle East. Orange Money had 19 million customers at 30 June 2016 (+36 percent).

Growth in Orange revenues was just 0.3 percent to 20.079 billion euros in the first half of 2016.

The Enterprise segment rose 1.2 percent over the half, led by IT and integration services.

First-half EBITDA was 5.913 billion euros, down 0.6 percent. The EBITDA margin was 29.4 percent, a decline of 0.3 percentage points. In the second quarter, EBITDA rose 0.1 percent after falling 1.6 percent in the first quarter.

Net income of Orange was 3.323 billion euros in the first half of 2016 (+2.050 billion euros) mainly related to the sale of EE which occurred in January 2016.