Orange plans investment of 7.4 billion euros in 2018

Orange for mobile phone usersTelecom operator Orange is targeting Capex (capital expenditure) of 7.4 billion euros in 2018 against 7.2 billion euros in 2017.

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Orange indicated that its Capex for 2019 and 2020 will decrease in line with its investment strategy.

Orange has made an investment of 7.2 billion euros last year to support its strategy of differentiation through investment in network quality and customer experience.

As a result of its Capex related investment program, Orange connected 26.6 million homes to high-speed broadband. Orange expanded its 4G services to three new countries, bringing the total to 21 countries.

Orange CEO Stephane Richard said: “We have 4.7 million fibre customers and 46 million 4G customers across the Group. This performance has translated into solid financial results.”

Orange’s 2017 revenue rose 1.2 percent to 41.06 billion euros. Orange’s EBITDA rose 1.1 percent to 12.819 billion euros.

Orange has generated 11.026 billion euros (+4.6 percent) from Europe, 5.030 billion euros (–4.1 percent) from Africa and Middle East and 7.252 billion euros (–1.4 percent) from global enterprise business.

Orange’s European revenue includes 5.371 billion euros from Spain, 2.674 billion euros from Poland, 1.251 billion euros from Belgium & Luxembourg and 1.749 billion euros from Central European countries.

Investment focus

Orange said Capex was 7.209 billion euros in 2017, an increase of 3.4 percent compared to the previous year.

Orange focussed on making investment in high speed broadband — with a third of investment growth attributable to fibre mainly in France, Spain and Poland.

Orange connected 26.6 million (+31 percent) households to high-speed broadband, including 12.0 million in Spain, 9.1 million in France, 2.5 million in Poland and 2.3 million in Romania.

The increase in capital spending on 4G and 4G+ services represented around two thirds of investment growth in high-speed broadband — largely due to accelerated rollouts in Africa & the Middle East, France and Spain.

4G coverage as a percentage of the population was 95.9 percent in France, 95.7 percent in Spain, 99.8 percent in Poland, 99.7 percent in Belgium, 93.2 percent in Romania, 90 percent in Slovakia and 98 percent in Moldova.

In France and Spain, investments focused on improving service quality in public spaces and on public transport. The increased investment in information systems and services platforms is attributable to the launch of Orange Bank services.

Investments in customer equipment increased slightly: the expansion of convergent offers in Belgium and Spain was offset by optimising box costs in France.

Orange had 327 stores based on the new Smart Store concept, including 123 in France, 170 in the other European countries and 34 in Africa & the Middle East.