Telecom operator Orange Group said its capital expenditures (Capex) of 6.971 billion euros in 2016 increased 3 percent.
Capex related to telecoms activities of 6.956 billion euros rose 2.8 percent and was equivalent to 17 percent of revenues from telecoms activities (+0.4 percentage points compared with 2015).
Orange enhanced investments in fibre by 10 percent principally related to France, Spain and Poland, while continuing focus on 4G and 4G+ deployment, in line with the goals of the Essentiels2020 strategic plan.
“Our investments are driving our commercial performance, led by very high speed fixed and mobile broadband and despite a level of competition that is intense and unprecedented, particularly in France,” said Stephane Richard, chairman and CEO of Orange Group.
Orange Group said its fibre customer base grew 75 percent with 3.3 million customers by the end of 2016 and 4G customer base in Europe rose 58 percent with 28 million customers.
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Orange fibre
Orange connected 20.3 million (+57 percent) households with fibre connectivity including 9.6 million in Spain, 6.9 million in France, 2.0 million in Romania, 1.5 million in Poland and 350,000 in Slovakia.
Orange enhanced the 4G coverage to 88 percent of the population in France, 90 percent in Spain, 99 percent in Poland, 99.6 percent in Belgium, 80 percent in Romania and Slovakia, and 97 percent in Moldova.
Orange continued investments in 4G+ deployment in France and in the other European countries. Orange deployed 3G in the 21 countries in Africa and the Middle East, with 4G launched in 10 nations.
Orange is deploying Internet of Things (IoT) network based on LoRa technology in France and already covers 18 urban areas or 120 towns.
Orange is making substantial Capex for information systems and service platforms, with the data centre optimisation program in France, investment related to the integration of Jazztel in Spain, and projects to improve the customer experience in Africa and the Middle East.
Orange Group had 157 stores based on the new Smart Store concept, 65 of which are in France, 79 in the other European countries, and 13 in Africa and the Middle East.
Orange’s Capex in France rose 10.5 percent in 2016 — equivalent to 18 percent of revenues (+1.9 percentage points), led by a sharp increase in fibre investment to connect 6.9 million households (+1.8 million households in one year). 88 percent of the population had 4G coverage (+8 percentage points), and 43 percent of 4G sites were equipped with 4G+.
Capex in the Europe zone was 1.960 billion euros in 2016, equivalent to 18.6 percent of revenues. Orange focused on the roll-out of mobile 4G and 4G+ services and investments in fibre in Spain and Poland.
Capex in Spain was 1.086 billion euros — equivalent to 21.7 percent of revenues. There were 9.6 million connectable households (+2.8 million) and 90 percent of the population had 4G mobile coverage (+6 percentage points).
Orange’s Capex in Poland rose 2.4 percent in 2016 — equivalent of 17.2 percent of revenues (+0.8 percentage points) due to the deployment of high-speed fixed and mobile services. 99 percent of the population had 4G coverage (+15 percentage points).
Capex in the Africa and Middle East fell 4.2 percent to 962 million euros in 2016.
Orange’s Capex in the Enterprise segment increased 5.1 percent.
Orange Money had 28.9 million customers.
Revenues rose 0.6 percent to 40.918 billion euros in 2016. The adjusted EBITDA rose 1.3 percent to 12.682 billion euros in 2016. Net income grew 10.3 percent to 3.263 billion euros.
