March 1, 2021

Orange Spain slows its growth but remains the most profitable subsidiary | Economy

Orange Spain slows its growth but remains the most profitable subsidiary | Economy

Orange Spain increase its profitability in 2018 although at a lower rate than in 2017, due to the strong competition. The main subsidiary of the French group abroad recorded a gross operating profit (EBITDA) of 1,700 million euros, 8.4% more, and the margin against income stood at 31.8%, 1.8 percentage points more than in the previous year. In 2017, Ebitda grew at a faster pace (+ 17%), but despite this slowdown, the Spanish subsidiary continues to be the most profitable of the French group, well ahead of France, the rest of Europe and Africa.

In 2018, the operator achieved revenues of 5,349 million euros, 2.2% more than in the previous year. In the fourth quarter, the advance was 2.4%, compared to 0.5% in the period between July and September, although the pace decreases compared to the whole of 2017, in which turnover increased by 7.1%, setting a record for the orange brand in Spain.

The growth of revenues is due, in part, to the strong pull of the convergent packages, which although maintain the number of customers at 3.13 million (+ 1.1%) sees its turnover grow by 3.1% (2.143 million ) for the increase in rates, and for the increase of 1% of the average income by up to 58.90 monthly.

Orange's turnover in Spain for mobile services fell 1.3% to 1,215 million, while the sale of equipment increased 2.3% (684 million) and that of the fixed services business fell by 1% (496). millions).

Capital expenditures (capex) reached the year at 1,120 million euros (+ 0.4%) and the capex versus income ratio dropped 0.4 percentage points to 20.9%. Orange has highlighted that, with this evolution, operating cash flow increased by 28.1%. Thanks to this investment, the company already has a fourth generation mobile telephony coverage over 96.9% of the Spanish population and reaches 14 million households in Spain with its fiber network, 16% more than the year previous.

Customers grow

The company has managed to close the year 2018 with 20.3 million customers, of which 16.2 million are mobile telephony (+ 0.9% including those of the acquired Republic Mobile) and more than 9.7 million of them they are 4G, and 4.2 million fixed broadband (with 2.9 million fiber optics, 28% more than the previous year). Likewise, Orange already has 716,000 television customers in Spain, 14% more than the previous year.

The Orange network serves 3.26 million customers of virtual mobile operators (including the Mobile Republic) with whom it has reached agreements (9.9% more than in the previous year). Orange's mobile network is the one that offers service to a greater number of customers in Spain.

The company has several brands. The main Orange offers a convergent offer premium; Jazztel, for value optimizers; Amena, no-frills and digital and now Simyo and República Móvil for those mobile customers looking for the most adjusted price.


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