Commenting on these results, Christel Heydemann, the Orange group’s Chief Executive Officer, said:
“
Orange has had a very good first half with solid results that allow us to confirm the Group’s guidance.
These results, which notably include a sharp increase in cash flow, continue to be driven by the remarkable
performance of Africa & Middle East and the solid improvement of EBITDAaL in Europe, including in France
where EBITDAaL stabilized in this first half.
This once again demonstrates our ability to execute the Lead the Future strategic plan in a constantly
evolving market.
In France, our position as market leader, particularly in the high-end segment, and the excellent quality of
our network and service enable us to maintain a disciplined pricing policy. We continue to launch distinctive
and innovative offerings, such as the new “Orange Cybersecure” B2C cybersecurity solution, which draws
on the recognized expertise of our subsidiary, Orange Cyberdefense.
In Spain, the MASORANGE teams are fully operational and are starting to deliver the initial synergies.
Today, MASORANGE announces the signing of a non-binding agreement with Vodafone Spain to create a
FiberCo, which would allow us to capitalize on our infrastructure.
I would sincerely like to thank all Orange colleagues for their dedication and performance during this first
half. We will continue to demonstrate our know-how throughout the coming weeks of the Paris 2024
Olympic and Paralympic Games. Orange is here to connect athletes, organizers, spectators and viewers
from all around the world.”
2
Orange group revenues rose 0.9% compared with the second quarter of 20231 (+85 million euros)
thanks to growth in retail services (+2.4% or +182 million euros) and a smaller decline in wholesale
services (-7.9% or -128 million euros), mainly related to higher unbundling and civil engineering rates
in France in the first quarter.
▪ Africa & Middle East is the main contributor to this growth, with revenues rising strongly
(+10.3% or +177 million euros), driven by a robust performance in voice as well as double-digit
increases in its four growth engines (+17.9% in mobile data, +19.2% in fixed broadband,
+18.9% for Orange Money and +14.5% in B2B across all activities).
▪ Revenues in France increased +0.3% (+14 million euros) thanks to the growth in retail services
excluding PSTN2 (+2.5%), in line with the
Lead the Future growth target of between 2.0% and
4.0%, and a smaller decline in wholesale (-5.7%).
▪ Europe declined (-2.2% or -38 million euros) due to a reduction in low-margin activities,
partially offset by growth of convergent services (+7.1%).
▪ The slight decrease in Orange Business revenues (-1.4% or -27 million euros) was again due to
the decline in Fixed-only revenues (-7.9% or -65 million euros), partially offset by growth in IT
and Integration services revenues (+4.6% or +43 million euros), led by Orange Cyberdefense
(+10.6%).
▪ In terms of commercial performance, the Group maintained its leadership position in
convergence in Europe (including France), with a total of 9.1 million convergent customers
(+1.4%), as well as its commercial momentum in mobile contracts and very high-speed fixed
broadband accesses. Mobile services had 245.9 million accesses worldwide (+7.3%) including
91.1 million contracts (+10.9%). Fixed services had 38.9 million accesses worldwide (declining
-3.3%) of which 13.7 million were very high-speed broadband accesses, an area that
continued to show strong growth (+14.0%). Fixed narrowband accesses continued their
decline (-12.8%).
The growth in EBITDAaL demonstrates the Group’s ability to implement its value strategy.
Group EBITDAaL was up 2.6% in the second quarter. In the first half of 2024, it reached 5,511 million
euros (+2.5%), in line with the target of slight growth in 2024. This growth was driven by the
remarkable performance of Africa & Middle East (+14.7%), by a solid performance in Europe (+4.0%)
and by France (+0.3%). These more than offset the decline of Orange Business (-11.3%), which
recorded an improvement compared with the first half of 2023 (+5.4 points). EBITDAaL from telecom
activities grew to 5,573 million euros (+2.4%).
Group operating income in the first half of 2024 was 2,032 million euros, up 8.4% due to the increase
in EBITDAaL.
Consolidated net income in the first half of 2024 was stable at 1,092 million euros (+4 million euros on
a historical basis). The decrease of -172 million euros in net income from continuing operations was
offset by an increase of +176 million euros in net income from discontinued operations. The
contribution to net income for the first half 2024 from Spanish activities was 3 million euros3.
Net income attributable to owners of the parent company was 824 million euros. Earnings per share,
Group share (EPS) was 0.28 euros, compared with 0.30 euros in the first half of 2023.
In the first half of 2024, eCAPEX rose +2.6% to 2,921 million euros excluding Spain, in particular to
support growth in Africa & Middle East. eCAPEX for telecom activities as a percentage of revenues
was 14.7%, in line with the objective of around 15% in 2024. The number of households connectable
1 Unless otherwise stated, percentage changes are on a year-on-year basis, calculated against the second quarter of 2023 on a
comparable basis.
2 Public Switched Telephone Network
3 Orange Spain net income in the first quarter of +209 million euros was offset by the share of net income of MASORANGE in the
second quarter of -206 million euros.
3
to FTTH reached 57.6 million excluding Spain (+11.6%), and the FTTH customer base was 12.6 million
(+14.8%).
Organic cash flow from telecom activities excluding Spain reached 1,551 million euros at 30 June
2024, in line with the target of at least 3.3 billion euros by the end of 2024. The significant
improvement in cash flow generation of 17.4% year on year (+230 million euros) is mainly due to the
improvement of the indicator “EBITDAaL - eCAPEX” (+64 million euros on a historical basis) and the
decrease in income tax expense payments (+134 million euros).
Free cash flow all-in from telecom activities excluding Spain was 1,255 million euros, up more than
21% year on year.
Net debt fell 3,991 million euros compared with 31 December 2023, mainly due to the 4 461 million
euros of proceeds received as part of the creation of the MASORANGE joint venture in Spain. The
ratio of net financial debt to EBITDAaL from telecom activities fell to 1.90x at 30 June 2024, still in line
with the target of approximately 2x over the medium term. The liquidity position of telecom activities of
17,391 million euros is solid and the average cost of gross debt is 2.96%.
Financial objectives
The Group can therefore confirm its financial targets for 20244:
▪ Low single-digit growth in EBITDAaL
▪ Discipline on eCAPEX
▪ Organic cash flow from telecom activities of at least 3.3 billion euros
▪ A ratio of net debt/EBITDAaL from telecom activities unchanged at about 2x in the medium term
▪ On 5 December 2024, Orange will pay an interim dividend in cash of 0.30 euros per share for 2024.
Payment of a dividend of 0.75 euros per share in respect of the 2024 fiscal year will be proposed to
the Shareholders’ Meeting in 2025.
Orange’s sustainability commitments
In the first half of 2024, Orange continued to make progress on its commitments.
The scores currently awarded by ESG rating agencies are positive: MSCI: A; Sustainalytics: low risk;
ISS: Prime B-; CDP: A-.
The SBTi has validated Orange’s greenhouse gas emission reduction targets for the medium term
(2030) and long term (2040).
Orange has already exceeded its goal of reducing its scope 1 and 2 CO2 emissions. This year, it
launched a program with its key suppliers with the aim of jointly developing a long-term pathway
toward Net Zero Carbon.
In June, Orange launched cybersecurity solutions in France in the B2C market.
The number of people who have benefited from free digital training since 2021 has reached 2.2 million,
in line with the target.
Orange has published its Human Rights Policy, with commitments to promote digital citizenship,
campaign for respecting privacy and freedom of expression, promote non-discrimination and equal
opportunities, guarantee decent working conditions and do business with complete confidence, while
mitigating the environmental impacts of its activities.
