Orange reports revenue decline, but adds customers

Orange reports revenue decline, but adds customers

Orange UK reported a 2.6% decline in revenues to £2.2bn for the first half of 2009, but increased its contract base by 10%

The network added 64,000 contract customers, finishing the period ended 30 June with 6.4 million. Contract customers now account for 41% of its customer base, compared with 37% at the end of June last year.

Orange’s total customers at the end of June were 15.8 million – a marginal year-on-year increase of 0.6%.

Meanwhile, mobile broadband customers were up 76% year-on-year to 4.3 million, which it attributed to the growth of its ‘Internet Everywhere’ service. The service finished the period with 277,000 customers on 30 June this year, compared with 102,000 at the same time in 2008.

The EBITDA margin remained virtually stable through the first half of the year, decreasing by 0.2 points compared to the same period last year, but the operator excluded the impact of new European regulations in its calculations.

Orange has also managed to maintain the cost cutting programme first set out by CEO Tom Alexander when he joined the company in January 2008.

Capital expenditure was reduced by 2.9% from £139m to £135m during the first six months of the year.

France Telecom chairman and chief executive officer, Didier Lombard said: ‘In an economic environment that deteriorated more than expected over the course of the first half of 2009, the level of revenues reflects the strong resilience of our business compared to GDP and our ability to maintain our competitive position.

‘The first results of the cost saving and transformation plans of Orange 2012 helped mitigate the impact of the economic slowdown, which was more or less pronounced depending on the country.’

Written by Mobile Today
Mobile Today


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