Orange S.A. (ORAN - Free Report) recorded revenues of approximately $11,371 million in the second quarter of 2016, up 1.9% year over year. Revenues also outpaced the Zacks Consensus Estimate of $11,266 million.
Segment-wise, Mobile Services revenues totaled approximately $4,835.3 million, down 0.1% year over year. Enterprise & International carrier and Shared services revenues came in at $2,052.9 million, down 0.9%. Fixed services revenues were $3,805.4 million, up 0.7%. Mobile Equipment sales reached $467.5 million, up 6.1% and Other revenues totaled $211.2 million, down 12.3%.
Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) increased 2.3% year over year to approximately $3,776.1 million. Quarterly EBITDA margin was 33.2% compared with 33.1% in the prior-year quarter. In the reported quarter, capital expenditure was around $1,931 million, up 5.7% year over year.
Revenues by Key Markets
In the reported quarter, revenues in France, the operator’s largest market, fell 1.7% year over year to approximately $5,290.3 million. Revenues in Spain were up 6.2% year over year to around $1,387.8 million. Revenues in Poland totaled around $749.8 million, down 3.5%. Revenues from Belgium & Luxembourg were $337.6 million, down 1.6% year over year while the same from Central Europe increased 1.5% to approximately $455 million.
In Africa and the Middle East, revenues grew 2.3% to $1,405.9 million. Revenues from International Carriers and Shared Services decreased 3.5% year over year to approximately $508.1 million. In the Enterprise segment, revenues increased 0.3% year over year to around $1,812.4 million.
Subscriber Trends
As of Jun 30, 2016, Orange had 249.55 million subscribers (excluding MVNOs) across its operating territories, up 0.5% from the year-ago quarter. The mobile customer base (excluding MVNOs) dropped 0.7% to 188.562 million. MVNO subscriber base in Europe was 4.306 million, down a substantial 32.2% year over year. Subscribers of broadband services increased 10.4% to 17.89 million. IPTV and satellite TV customers rose 9.6% to 8.146 million. VoIP customers totaled 13.904 million, up 19.4%. IP VPN access lines for enterprise customers were 0.351 million, up 0.6% year over year.
Zacks Rank & Stocks to Consider
Orange carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the non-U.S. telecom industry include NTT DOCOMO Inc. , KT Corp. (KT - Free Report) and Nippon Telegraph and Telephone Corp. . All three stocks currently sport a Zacks Rank #1 (Strong Buy).
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Orange S.A. (ORAN - Free Report) recorded revenues of approximately $11,371 million in the second quarter of 2016, up 1.9% year over year. Revenues also outpaced the Zacks Consensus Estimate of $11,266 million.
Segment-wise, Mobile Services revenues totaled approximately $4,835.3 million, down 0.1% year over year. Enterprise & International carrier and Shared services revenues came in at $2,052.9 million, down 0.9%. Fixed services revenues were $3,805.4 million, up 0.7%. Mobile Equipment sales reached $467.5 million, up 6.1% and Other revenues totaled $211.2 million, down 12.3%.
Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) increased 2.3% year over year to approximately $3,776.1 million. Quarterly EBITDA margin was 33.2% compared with 33.1% in the prior-year quarter. In the reported quarter, capital expenditure was around $1,931 million, up 5.7% year over year.
Revenues by Key Markets
In the reported quarter, revenues in France, the operator’s largest market, fell 1.7% year over year to approximately $5,290.3 million. Revenues in Spain were up 6.2% year over year to around $1,387.8 million. Revenues in Poland totaled around $749.8 million, down 3.5%. Revenues from Belgium & Luxembourg were $337.6 million, down 1.6% year over year while the same from Central Europe increased 1.5% to approximately $455 million.
In Africa and the Middle East, revenues grew 2.3% to $1,405.9 million. Revenues from International Carriers and Shared Services decreased 3.5% year over year to approximately $508.1 million. In the Enterprise segment, revenues increased 0.3% year over year to around $1,812.4 million.
Subscriber Trends
As of Jun 30, 2016, Orange had 249.55 million subscribers (excluding MVNOs) across its operating territories, up 0.5% from the year-ago quarter. The mobile customer base (excluding MVNOs) dropped 0.7% to 188.562 million. MVNO subscriber base in Europe was 4.306 million, down a substantial 32.2% year over year. Subscribers of broadband services increased 10.4% to 17.89 million. IPTV and satellite TV customers rose 9.6% to 8.146 million. VoIP customers totaled 13.904 million, up 19.4%. IP VPN access lines for enterprise customers were 0.351 million, up 0.6% year over year.
Zacks Rank & Stocks to Consider
Orange carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the non-U.S. telecom industry include NTT DOCOMO Inc. , KT Corp. (KT - Free Report) and Nippon Telegraph and Telephone Corp. . All three stocks currently sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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