Orange revenues hit by UK slump

Orange revenues hit by UK slump

Orange is feeling the economic pinch with revenues down 15.3%, ADSL services dropping 12.7% and mobile revenues down 6.8%.

Despite breaking through the 17m customer barrier for the first time, parent company France Telecom’s Q3 results show its UK arm struggling under the weight of a weak pound and regulatory measures that include roaming charges and lower mobile termination rates.

However of the 15.3% fall in revenues, 8.9% of this relates to the weak pound sterling exchange rate, with the actual revenue decline closer to 7%.

Orange UK saw broadband customer numbers drop in the face of increasing competition. In Q3 the number of subscribers dropped 12.2% to 899,000 compared to 1.023 million a year ago.

However Mobile subscriber numbers increased slightly, rising 1.9% to a total of 16,110 customers. Orange UK’s mobile broadband remains strong, with customer numbers soaring 64% year on year to 4.717 million.

France Telecom said its UK arm operations were hit harder by the recession than in other countries, suffering the double whammy of an unfavourable exchange rate and regulatory measures. However, it added that the group as a whole is still outperforming the GDP performance of the national markets where they are present.

France Telecom also confirmed plans for a merger with T-Mobile remain on track for early November.

Written by Mobile Today
Mobile Today


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