Orange to drop Capex in 2019 after spending 7.4 bn euros in 2018

Telecom operator Orange announced that it will drop its Capex in 2019 after spending 7.4 billion euros in 2018.
Orange revenue 2018Orange’s Capex for 2018 rose 3.5 percent showing Capex to sales ratio of 17.9 percent. The increase in Capex was due to the improvement in fibre deployment. 32.5 million (+22.4 percent) households, including 13.8 million in Spain, 11.8 million in France, and 6.4 million in Europe had connectivity to high-speed broadband.

Orange has also made investment in 4G and 4G+ mobile services in almost every country.

Orange Capex in 2018

Orange’s Capex in France rose 6 percent to 3,656 million mainly focusing on fibre network. It added 2.7 million households in 2018 compared to 2.2 million in 2017 to fibre. Its 4G sites cover 98.6 percent of the population.

Orange’s Capex in Spain rose 0.4 percent to 1120 million euros.

Orange’s Capex in Europe increased 6.1 percent to 953 million euros thanks to investment in the deployment of fibre and LTE in Poland and networks in Central Europe. 4G population coverage in Romania reached 96.9 percent. LTE coverage in Slovakia reached 94 percent in 2018.

Orange’s Capex in Africa and Middle East remained stable at 1 billion euros in 2018 — was mainly related to deployment of 4G mobile networks in the DRC and in Mali and fibre in Jordan, Morocco and Cote d’Ivoire.

Orange revenue

Orange revenues rose 1.3 percent to 41.381 billion euros in 2018. Orange generated revenues of 18.211 billion euros from France, 5.349 billion euros from Spain, 5.687 billion euros from Europe, 5.190 billion euros from Africa & Middle East, 7.292 billion euros from Enterprise and 1.534 billion euros from International Carriers & Shared Services last year.

Orange has 203.618 million mobile phone customers (+0.6 percent), 20.145 million fixed broadband customers (+3.9 percent), 6.345 million (+33.2 percent) high-speed broadband customers and 10.890 million customers for convergent offers.

Orange Group said its financial debt was 25.441 billion euros at 31 December 2018, up 1,598 million euros over 31 December 2017. This increase results from its strategy to invest in very high-speed broadband networks and transform our Enterprise services offerings.

Orange CFO Ramon Fernandez said: “Competitive environment in France has intensified and shows no sign of waning, so it inevitably has an impact on our capacity to generate growth.”

Orange and rivals Iliad, Bouygues Telecom and Altice Europe’s SFR are in a race to win customers for their fixed and mobile businesses. Spending on telecom network Capex and 5G spectrum are their main challenges.

Orange CEO Stephane Richard said he would present a new strategic plan dubbed Vision 2025 later this year.

Baburajan K