By Mathieu Rosemain
PARIS (Reuters) -French telecom major Orange on Thursday posted higher fourth-quarter core operating profit that was in line with expectations, as strong sales in Africa and the Middle East overshadowed a decline in its enterprise division.
The country’s biggest telecoms operator’s earnings before interest, tax, depreciation and amortisation after leases (EBITDAaL) for the three months ended Dec. 31 rose 8.5% to 3.45 billion euros ($3.7 billion), matching the average of 16 analyst estimates compiled by the company.
Revenues edged up 1.3% to 11.35 billion euros, also beating average estimate of 11.2 billion euros.
Orange’s yearly core operating profit totaled about 13 billion euros, up 2.5%, in line with the lower end of its target.
The company’s annual organic free cash flow from telecom activities jumped by 27% to 3.1 billion euros, also in line with its target.
Chief Executive Officer Christel Heydemann is set to present the company’s much-expected new strategic plan to investors later in the day.
Dubbed “Lead the Future”, it ambitions to further turnaround the group’s struggling entreprise division, as companies abandoned regular fixed phone subscriptions to make calls via Internet-supported communication platforms.
The group also sees further growth in cybersecurity.
As part of the new strategic plan, Orange set financial targets for 2025, including organic cash from telecoms activities of 4 billion euros.
($1 = 0.9343 euros)
(Reporting by Mathieu Rosemain; Editing by Jacqueline Wong and Rashmi Aich)
