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Orange's (ORAN) Revenues and EBITDA Increase Y/Y in Q3
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Orange S.A. (ORAN - Free Report) recorded revenues of approximately $11,183 million in the third quarter of 2016, up 0.8% year over year. The impressive result came primarily on the back of strong performance in high-speed broadband business and convergence of customer base.
Segment wise, Mobile Services revenues totaled approximately $4,890 million, up 0.4% year over year. Enterprise & International carrier and Shared services revenues came in at $1,931.5 million, down 0.6%. Fixed services revenues were $3,647.5 million, up 0.5%. Mobile Equipment sales reached $491.8 million, up 12.6% and Other revenues totaled $222.1 million, up 4.6%.
Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) grew 1.6% year over year to approximately $3,896.6 million. Quarterly EBITDA margin was 34.8% compared with 34.6% in the prior-year quarter. In the reported quarter, capital expenditure was around $1,696.4 million, up 0.5% year over year.
In the reported quarter, revenues in France, the operator’s largest market, fell 0.6% year over year to approximately $5,165.2 million. Revenues in Spain surged 7.8% year over year to around $1,395.3 million. Revenues in Poland totaled around $711.7 million, dipping 3.9%. Revenues from Belgium & Luxembourg were $336.9 million, inching up 1.7% year over year while the same from Central Europe increased 0.8% to approximately $451.8 million.
In Africa and the Middle East, revenues grew 2.5% to $1,485.2 million. Revenues from International Carriers and Shared Services decreased 4.7% year over year to approximately $494 million. In the Enterprise segment, revenues increased 0.7% year over year to around $1,697.5 million.
Subscriber Trends
As of Sep 30, 2016, Orange had 255.515 million subscribers (excluding MVNOs) across its operating territories, down 3% from the year-ago quarter. The mobile customer base (excluding MVNOs) dropped 3.6% to 194.458 million. MVNO subscriber base in Europe was 4.657 million, up 18.1% year over year.
Subscribers of broadband services increased 0.7% to 18.059 million. IPTV and satellite TV customers rose 7.1% to 8.2 million. VoIP customers totaled 14.13 million, up 6.2%. IP VPN access lines for enterprise customers were 0.351 million, up 0.6% year over year.
Recent Development
In Sep 2016, Orange has teamed up with the U.S. telecom behemoth AT&T Inc. (T - Free Report) on open source initiatives in order to accelerate the standardization of software-defined networking (SDN) and network function virtualization (NFV). In relation to this, AT&T declared Orange as its first telecom partner to test its open-source Enhanced Control, Orchestration, Management, and Policy (ECOMP) platform.
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Orange's (ORAN) Revenues and EBITDA Increase Y/Y in Q3
Orange S.A. (ORAN - Free Report) recorded revenues of approximately $11,183 million in the third quarter of 2016, up 0.8% year over year. The impressive result came primarily on the back of strong performance in high-speed broadband business and convergence of customer base.
Segment wise, Mobile Services revenues totaled approximately $4,890 million, up 0.4% year over year. Enterprise & International carrier and Shared services revenues came in at $1,931.5 million, down 0.6%. Fixed services revenues were $3,647.5 million, up 0.5%. Mobile Equipment sales reached $491.8 million, up 12.6% and Other revenues totaled $222.1 million, up 4.6%.
Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) grew 1.6% year over year to approximately $3,896.6 million. Quarterly EBITDA margin was 34.8% compared with 34.6% in the prior-year quarter. In the reported quarter, capital expenditure was around $1,696.4 million, up 0.5% year over year.
Orange competes with large telecom operators like Telefonica SA (TEF - Free Report) and Vodafone Group plc. (VOD - Free Report) in Europe, Latin America and Africa. Orange currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Revenues by Key Markets
In the reported quarter, revenues in France, the operator’s largest market, fell 0.6% year over year to approximately $5,165.2 million. Revenues in Spain surged 7.8% year over year to around $1,395.3 million. Revenues in Poland totaled around $711.7 million, dipping 3.9%. Revenues from Belgium & Luxembourg were $336.9 million, inching up 1.7% year over year while the same from Central Europe increased 0.8% to approximately $451.8 million.
In Africa and the Middle East, revenues grew 2.5% to $1,485.2 million. Revenues from International Carriers and Shared Services decreased 4.7% year over year to approximately $494 million. In the Enterprise segment, revenues increased 0.7% year over year to around $1,697.5 million.
Subscriber Trends
As of Sep 30, 2016, Orange had 255.515 million subscribers (excluding MVNOs) across its operating territories, down 3% from the year-ago quarter. The mobile customer base (excluding MVNOs) dropped 3.6% to 194.458 million. MVNO subscriber base in Europe was 4.657 million, up 18.1% year over year.
Subscribers of broadband services increased 0.7% to 18.059 million. IPTV and satellite TV customers rose 7.1% to 8.2 million. VoIP customers totaled 14.13 million, up 6.2%. IP VPN access lines for enterprise customers were 0.351 million, up 0.6% year over year.
Recent Development
In Sep 2016, Orange has teamed up with the U.S. telecom behemoth AT&T Inc. (T - Free Report) on open source initiatives in order to accelerate the standardization of software-defined networking (SDN) and network function virtualization (NFV). In relation to this, AT&T declared Orange as its first telecom partner to test its open-source Enhanced Control, Orchestration, Management, and Policy (ECOMP) platform.
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