Communiqué Orange : full year 2021 financial results
Press releaseParis, 17 February 2022
Financial information at December 31, 2021
Orange achieves all of its 2021 targets
and expects to generate organic cash flow of at least 2.9 billion
euros in 2022
In millions of euros |
|
4Q 2021 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2021 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
11,148 |
0.5 % |
2.1 % |
|
42,522 |
0.8 % |
0.6 % |
EBITDAaL |
|
3,179 |
(0.7)% |
(0.1)% |
|
12,566 |
(0.5)% |
(0.9)% |
Operating Income |
|
|
|
|
|
2,521 |
(54.5)% |
(54.3)% |
Consolidated net income |
|
|
|
|
|
778 |
|
(84.6)% |
eCAPEX (excluding licenses) |
|
2,106 |
(6.2)% |
(6.3)% |
|
7,660 |
7.8 % |
7.4 % |
EBITDAaL -
eCAPEX |
|
1,073 |
12.3 % |
14.7 % |
|
4,906 |
(11.3)% |
(11.6)% |
Organic cash-flow (telecom activities) |
|
|
|
|
|
2,401 |
|
(3.7)% |
- Revenues up
0.8%1 for the full year 2021, driven by the solid performance of
Africa & Middle East (+10.6%) and a strong increase in
equipment sales (+8.5%)
- Excellent
performance in Fiber: 11.8 million fiber (FTTH) customers
(+22.1%) out of 56.5 million connectable households (+19.7%).
In France, the FTTH customer base recorded a year-on-year increase
of 31.7%.
- EBITDAaL 0.5%
lower for the year, in line with the target
Excluding the 2021 employee shareholding
program, EBITDAaL was up 0.8% as a result of the notable
performances in Africa & Middle East and Europe excluding
Spain, which offset the decline in Spain, the Enterprise segment
and France. Excluding co-financing, France posted year-on-year
EBITDAaL growth of 1.5% with a very strong commercial
performance.
- eCAPEX rose 7.8%
in 2021 to 7.7 billion euros, in line with the target, after
the high level of co-financing and the pandemic-related slowdown in
investment seen in 2020. eCAPEX began to decline in the second half
of the year.
- Organic
cash-flow from telecoms activities stood at 2.4 billion euros,
fully in line with the goal to exceed 2.2 billion euros.
- The
Shareholders' Meeting of 19 May 2022 will decide on the
distribution of a dividend of 0.70 euros per share.
Orange has set itself the following targets for
2022:
- EBITDAaL to
increase by 2.5% to 3%
- eCAPEX no
greater than 7.4 billion euros2
- Organic cash
flow from telecoms activities of at least 2.9 billion
euros
- Net
debt/EBITDAaL ratio for telecoms activities unchanged at around 2x
in the medium term
- Maintaining the
dividend for the financial year 2022 at 0.70 euros including
an interim dividend of 0.30 euros in December 2022
For 2023, Orange confirms all of its commitments
including organic cashflow from telecoms activities of at least 3.5
billion euros.
Commenting on the publication of these results,
Stéphane Richard, Chairman and Chief Executive Officer of the
Orange group, said:
“The Group’s results reflect a solid 2021
performance. Indeed, Orange has delivered on its commitments and is
confirming all its objectives for 2023, including organic cashflow
of between 3.5 and 4 billion euros. Thanks to our investments,
today we’re the uncontested European fiber optic leader with a vast
network of over 56 million connectable households across the
Group’s footprint.
Our European leadership in convergence has also
been confirmed with 11.5 million clients, and the integration of
TKR in Romania and the process that is well under way in Belgium to
acquire Voo are further reinforcing this.
In France, our largest market, our commercial
performance has been very strong and customer satisfaction is
constantly growing.
The dynamic in our Africa zone has been
remarkable, with a 11% increase in revenues. With over 44 million
4G clients, mobile data continues its development generating
revenues in this segment that are up 25%.
Our ambitious moves into cybersecurity and
banking are paying off. With revenues of 800 million euros,
cybersecurity has delivered a 14% growth in 2021 while Orange Bank
now has 1.7 million clients in Europe.
Finally, our operational efficiency program
“Scale Up” is well under way and we are driving our efforts forward
in this regard.
The Group’s commercial performance has also been
excellent, actively contributing to the achievement of our 2021
objectives in a context marked by important challenges: the move
from copper to Fiber, the transition to providing IT services and
also the turnaround of the situation in Spain. So, excluding
non-operational factors such as the employee share offer, our
margin and organic cash-flow are growing.
I’d like to express my gratitude to all of the
Group’s teams right around the world who, thanks to their
relentless application, have allowed us to deliver this excellent
performance.
With my mandate as Chairman and Chief Executive
drawing to a close in the coming weeks, it is with pride that I
look upon everything that we have accomplished over these past
twelve years. I am confident about Orange’s future, that of a solid
company that has shown itself capable of capturing new growth
opportunities while at the same time strengthening its network
leadership."
___________________________________________________________________________________
The Board of Directors of Orange SA met on
February 16, 2022 to review the consolidated financial statements
for the year ended December 31, 2021. The Group's statutory
auditors performed their audit procedures on those financial
statements and the audit report relating to their certification
will be issued at the beginning of March 2022
More detailed information on the Group's
financial results and performance indicators is available on the
Orange website at
https://www.orange.com/en/consolidated-results.
Comments on Group key
figures
Revenues
The Orange group posted 2021
revenues of 42.5 billion euros, a
year-on-year increase of 0.8% after 0.5% growth in the fourth
quarter.
Africa & Middle East was the main
contributor to this growth, with a year-on-year increase of 10.6%,
followed by Europe excluding Spain (+2.6%) and the Enterprise
segment (+0.5%). The decline in France (-1.6%) was due to a
reduction in Fiber network co-financing compared to 2020.
Retail services3 continued to expand, driven by
convergent services (+1.9% year-on-year) in France and Europe
excluding Spain, and mobile-only services (+4.2%) in Africa &
Middle East. Fixed only services declined 2.8%. Wholesale revenues
were down 6.8% due to co-financing in France, while IT&IS
services and equipment sales continued to increase, the latter
returning to close to their 2019 level.
Customer base growth
There were 11.5 million convergent
customers Group-wide at December 31, 2021, up 2.1%4
year-on-year.
Mobile
services had 224.3 million access lines at
December 31, 2021, up 4.3% year-on-year, including
82.0 million contracts, an increase of 4.8% compared to a year
ago.
Fixed services totaled
46.4 million access lines at December 31, 2021 (down 1.7%
year-on-year), including 11.8 million FTTH access lines, which
continued their strong growth (+22.1% year on year). Fixed
narrowband access lines were down 13.3% year-on-year.
Mobile Financial Services had
nearly 1.7 million customers in Europe and 0.7 million
customers in Africa.
EBITDAaL
Group EBITDAaL
stood at 12.6 billion euros in 2021 (-0.5%), in line with the
objective of "stable but negative" EBITDAaL. This result included
an expense of 172 million euros related to the 2021 employee
shareholding program that involves approximately 1% of share
capital and mainly concerns France and the Enterprise segment.
Excluding this program, EBITDAaL was up 0.8%. The still low level
of roaming compared to 2019 was also a factor in this result.
EBITDAaL from telecom
activities was 12.7 billion euros, down 0.8%.
Operating income
Group operating income stood at
2,521 million euros in 2021, down from 5,537 million
euros on a comparable basis in 2020.
This decrease was mainly due to the recognition
in the first half 2021 of a goodwill impairment for Spain amounting
to 3.7 billion euros.
Net income
The Orange group's consolidated net
income totaled 778 million euros in 2021, compared
with 5,055 million euros in 2020.
This decline was linked to lower operating
income as well as the 2.2 billion euros in tax income
recognized at the end of 2020.
eCAPEX
Group eCAPEX was up 7.8% to
7,660 million euros in 2021, following the slowdown in
investment related to the public health crisis and the significant
co-financing received in 2020. This was in line with the stated
target of between 7.6 billion euros and 7.7 billion
euros.
At December 31, 2021, Orange had
56.5 million households with FTTH connectivity worldwide (up
19.7% year on year). In France, the FTTH customer base was up
31.7%.
Organic cash flow
Organic cash-flow from telecoms
activities stood at 2.4 billion euros in 2021 (versus
2.5 billion euros in 2020), fully in line with the goal to
exceed 2.2 billion euros.
Before allocation of the tax refund received in
2020, organic cash flow amounted to 2.7 billion euros, in
keeping with the return to growth that began in 2020.
Net financial debt
The Orange group's net
financial debt at December 31, 2021 stood at
24.3 billion euros. This increase of 0.8 billion euros
compared to 2020, despite the disposal of 50% of Orange Concession,
was mainly the result of the tax refund allocation and
telecommunication license payments (notably the 5G license in
Spain).
The net debt ratio at
December 31, 2021 was 1.91x, substantially in line with the
medium-term objective of around 2x.
“Scale Up” operational efficiency
program
To ensure it achieves its objectives, in 2020
Orange launched the "Scale Up" operational efficiency program,
thereby confirming its commitment to generating 1 billion
euros in net savings from a defined scope5 of 13.8 billion
euros in indirect costs in 2019.
By 2021 year-end, cumulative net savings of more
than 300 million euros had been generated from within that
scope versus 2019. These savings were mainly the result of a
structural decline in the workforce and a change in working methods
precipitated by the pandemic, with positive impacts on the cost
base.
Against a backdrop of inflation and strong
pressure on energy prices, Orange expects to achieve cumulative net
savings of around 600 million euros by the end of 2022, a
further step towards reaching its target of 1 billion euros by
the end of 2023.
Changes in asset portfolio
On November 3, 2021, Orange completed the
disposal of 50% of the capital of Orange Concessions to a
consortium comprising La Banque des Territoires, CNP Assurances and
EDF Invest. The sale was based on an enterprise value of
2.7 billion euros for 100% of the capital and resulted in
Orange renouncing sole control over this entity and its
subsidiaries.
On December 24, 2021, Orange Belgium signed an
agreement to acquire 75% minus one share of VOO SA based on an
enterprise value of 1.8 billion euros for 100% of the capital.
The transaction, which is part of the Group's convergence strategy,
is expected to generate significant synergies linked to the
transfer of VOO's MVNO business to the Orange Belgium network. The
acquisition has been submitted for European Commission approval,
which is expected in 2022.
Dividend
For the fiscal year 2021, the Shareholders'
Meeting of May 19, 2022 will decide on the distribution of a
dividend of 0.70 euros per share. Taking into account the 0.30-euro
interim dividend paid on December 15, 2021, the balance of the
dividend to be proposed to the Shareholders' Meeting will be
0.40 euros per share, to be paid in cash on June 9, 2022. The
ex-dividend date will be June 7, 2022.
For fiscal year 2022, the 2023 Shareholders'
Meeting will be asked to approve a maintained dividend of
0.70 euros per share. An interim dividend of 0.30 euros
per share will be paid in December 2022.
Review by operating segment
France
In millions of euros |
|
4Q 2021 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2021 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
4,658 |
(1.5)% |
(1.8)% |
|
18,092 |
(1.6)% |
(2.0)% |
Retail services (B2C+B2B) |
|
2,740 |
1.6 % |
1.6 % |
|
10,846 |
0.8 % |
0.8 % |
Convergence |
|
1,200 |
3.9 % |
3.9 % |
|
4,697 |
3.0 % |
3.0 % |
Mobile only |
|
577 |
4.0 % |
3.5 % |
|
2,276 |
1.8 % |
1.4 % |
Fixed only |
|
963 |
(2.4)% |
(2.1)% |
|
3,872 |
(2.4)% |
(2.2)% |
Wholesale |
|
1,302 |
(9.3)% |
(10.3)% |
|
5,313 |
(8.4)% |
(9.4)% |
Equipment sales |
|
403 |
(5.7)% |
(5.7)% |
|
1,226 |
3.3 % |
3.3 % |
Other revenues |
|
214 |
26.2 % |
26.5 % |
|
708 |
9.6 % |
9.9 % |
EBITDAaL |
|
|
|
|
|
6,867 |
(2.9)% |
(4.1)% |
EBITDAaL / Revenues |
|
|
|
|
|
38.0 % |
(0.5 pt) |
(0.8 pt) |
Operating Income |
|
|
|
|
|
2,653 |
(28.8)% |
(30.3)% |
eCAPEX |
|
|
|
|
|
4,117 |
9.5 % |
9.9 % |
eCAPEX / Revenues |
|
|
|
|
|
22.8 % |
2.3 pt |
2.5 pt |
Continued acceleration in
retail services driven
by an excellent commercial
performance
Orange France reached 1.4 million new
fiber customers in 2021 as very solid net fiber
additions continued, with 351,000 added in the fourth quarter.
Fiber remains a powerful customer acquisition tool with more than
53% of new fiber customers also being new to the Group. In early
2022, Orange France crossed the threshold of 6 million fiber
customers. These figures illustrate the success of its
copper-to-fiber transition strategy, which has allowed it to
maintain its fixed-line market share throughout the region.
In mobile, Orange France posted
strong growth in net additions in the fourth quarter (+132,000
excluding M2M), mostly driven by the success of the Orange brand
premium plans following the revamp of its offers in October.
Despite still-fierce competition in the last quarter of the year,
Orange managed to increase all its ARPOs, including the convergent
ARPO which rose 1.50 euros year on year and now exceeds
70 euros. At the same time, Orange recorded the lowest churn
rate for a fourth quarter in four years.
The financial results for the fourth quarter
reflected this excellent operational performance.
Revenues fell 1.5% as a result of lower
co-financing levels that affected wholesale services but were
stable (+0.2%) excluding co-financing, driven by retail
services, where growth continued to accelerate (+1.6% in
4Q, +1.2% in 3Q, +0.4% in 2Q and -0.2% in 1Q). Excluding PSTN,6
retail services even increased 4.0%.
For the full year 2021,
EBITDAaL fell 2.9% due to the co-financing
received in 2020. Excluding this co-financing, EBITDAaL rose 1.5%
despite the negative impact of around 100 million euros
related to the employee shareholding program launched in
October.
eCAPEX increased 9.5% from 2020
when it had dropped sharply due to the pandemic and the level of
co-financing received from third parties. Having reached its peak,
it began to decline in the second half of the year (-7.9%). Fiber
network deployment has now exceeded 80% of 2023 targets, with
28.8 million households connectable to FTTH at the end of 2021
nationwide, including more than 16 million deployed directly
in private areas.
Europe
In millions of euros |
|
4Q 2021 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2021 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
2,833 |
(1.5)% |
4.3 % |
|
10,579 |
(0.8)% |
(0.0)% |
Retail services (B2C+B2B) |
|
1,854 |
(1.8)% |
4.1 % |
|
7,046 |
(2.3)% |
(1.4)% |
Convergence |
|
704 |
4.1 % |
5.5 % |
|
2,720 |
0.1 % |
0.1 % |
Mobile only |
|
721 |
(3.5)% |
(3.4)% |
|
2,887 |
(4.5)% |
(5.0)% |
Fixed only |
|
314 |
(13.9)% |
18.0 % |
|
1,087 |
(7.2)% |
0.4 % |
IT & Integration services |
|
115 |
16.0 % |
13.8 % |
|
352 |
15.9 % |
13.7 % |
Wholesale |
|
509 |
(2.8)% |
3.3 % |
|
1,886 |
(2.9)% |
(1.9)% |
Equipment sales |
|
425 |
(1.0)% |
4.0 % |
|
1,490 |
8.4 % |
8.4 % |
Other revenues |
|
45 |
31.3 % |
34.3 % |
|
157 |
17.9 % |
17.1 % |
EBITDAaL |
|
|
|
|
|
2,830 |
(2.9)% |
(3.5)% |
EBITDAaL / Revenues |
|
|
|
|
|
26.7 % |
(0.6 pt) |
(1.0 pt) |
Operating Income |
|
|
|
|
|
(2,933) |
na |
na |
eCAPEX |
|
|
|
|
|
1,893 |
1.8 % |
2.5 % |
eCAPEX / Revenues |
|
|
|
|
|
17.9 % |
0.5 pt |
0.4 pt |
Improved profitability
Revenues in Europe were down
1.5% in the fourth quarter compared to 2020 due to Spain. Excluding
Spain they were up 0.5% in the fourth quarter, resulting in annual
growth of 2.6% on the previous year.
For the full year 2021, Europe managed to grow
all its customer bases, in particular due to the fourth quarter
when, including the integration of TKR, it achieved 58,000 mobile
contract net additions excluding M2M and 34,000 fixed broadband net
additions, of which 88,000 were fiber net additions.
The decline in EBITDAaL in 2021
was limited to 2.9%, reflecting a clear improvement in
profitability in the second half of the year (with a stable
performance) compared to the first half (-5.9%). Europe excluding
Spain rose 6.6% for the full year, due in particular to excellent
performances in Poland (+5.9%) and Belgium (+9.0%).
In Spain, revenues were down
4.0% in the fourth quarter. Retail services were still in decline
but continued to improve their trend (-5.4% versus -7.9% in the
third quarter). Wholesale revenues declined and equipment revenues
slowed after the significant catch-up in the preceding quarters,
with both having a limited impact on the margin. Revenues for the
full year fell 4.7%.
Sales figures for the quarter reflected the
quest for balance between volume growth and value preservation in a
particularly intense competitive environment. FTTH and mobile
contract net additions remained positive, while fixed broadband net
additions and convergent offers were slightly negative. In the year
as a whole, offer segmentation and the attention paid to the
customer experience resulted in a sharp reduction in the churn
rate, a significant improvement in the development of convergent
ARPO, and growth in the convergent, mobile contract and FTTH
customer bases, while stabilizing that of fixed broadband.
Spain's 2021 EBITDAaL declined 12.7%, a level
similar to that of 2020, due to the repositioning of offers. A
clear improvement in the trend between the first and second halves
of the year (-16.2% and -9.0%) gives us confidence of continued
improvement in 2022 as expected and a return to growth in EBITDAaL
from 2023.
Africa & Middle East
In millions of euros |
|
4Q 2021 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2021 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
1,687 |
9.0 % |
11.4 % |
|
6,381 |
10.6 % |
9.4 % |
Retail services (B2C+B2B) |
|
1,469 |
10.8 % |
12.9 % |
|
5,579 |
12.8 % |
11.4 % |
Mobile only |
|
1,284 |
10.6 % |
12.6 % |
|
4,884 |
12.2 % |
10.5 % |
Fixed only |
|
178 |
14.2 % |
17.5 % |
|
664 |
17.3 % |
18.2 % |
IT & Integration services |
|
7 |
(27.8)% |
(22.5)% |
|
31 |
9.0 % |
23.0 % |
Wholesale |
|
178 |
(1.5)% |
0.9 % |
|
654 |
(4.7)% |
(5.8)% |
Equipment sales |
|
31 |
2.1 % |
15.8 % |
|
112 |
16.5 % |
25.7 % |
Other revenues |
|
9 |
(17.8)% |
(15.4)% |
|
36 |
(14.5)% |
(16.1)% |
EBITDAaL |
|
|
|
|
|
2,265 |
16.8 % |
15.3 % |
EBITDAaL / Revenues |
|
|
|
|
|
35.5 % |
1.9 pt |
1.8 pt |
Operating Income |
|
|
|
|
|
1,291 |
27.6 % |
25.7 % |
eCAPEX |
|
|
|
|
|
1,064 |
3.8 % |
2.7 % |
eCAPEX / Revenues |
|
|
|
|
|
16.7 % |
(1.1 pt) |
(1.1 pt) |
Remarkable
performance continues
Africa & Middle East recorded strong growth
in revenues in the fourth quarter compared to 2020
(+9.0%).
This performance was driven by double-digit
growth in retail services (+10.8% after +15.0% in
the third quarter), thanks to mobile data (+25.2%) and fixed
broadband (+23.5%), both of which recorded very strong momentum in
customer base growth.
In the face of changes in Orange
Money's market conditions in some of its coverage area,
the Group adjusted its commercial strategy, most notably by
reviewing its offer pricing. This led to an increase in Orange
Money's active customer base and transaction volumes in all
countries in the fourth quarter but led to a significant drop in
revenues (-17.9%).
For the full year, EBITDAaL
increased 16.8% and operating margin (EBITDAaL as a proportion of
revenues) rose 2 points thanks to strict cost control.
These excellent results enable the Group to
confirm all its medium-term goals in Africa & Middle East, in
particular double-digit EBITDAaL growth and even faster growth in
organic cash flow.
Enterprise
In millions of euros |
|
4Q 2021 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2021 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
2,053 |
0.7 % |
0.2 % |
|
7,757 |
0.5 % |
(0.6)% |
Fixed only |
|
900 |
(5.0)% |
(4.5)% |
|
3,633 |
(4.8)% |
(5.7)% |
Voice |
|
269 |
(11.2)% |
(11.0)% |
|
1,106 |
(10.1)% |
(10.6)% |
Data |
|
630 |
(2.1)% |
(1.4)% |
|
2,527 |
(2.3)% |
(3.3)% |
IT & Integration services |
|
885 |
2.9 % |
0.9 % |
|
3,195 |
5.4 % |
3.6 % |
Mobile * |
|
269 |
16.1 % |
16.1 % |
|
929 |
6.8 % |
6.8 % |
Mobile only |
|
164 |
1.6 % |
0.9 % |
|
636 |
(1.2)% |
(2.0)% |
Wholesale |
|
11 |
(18.7)% |
(18.7)% |
|
42 |
(7.3)% |
(7.3)% |
Equipment sales |
|
94 |
65.2 % |
68.7 % |
|
250 |
39.0 % |
43.0 % |
EBITDAaL |
|
|
|
|
|
970 |
(8.3)% |
(5.2)% |
EBITDAaL / Revenues |
|
|
|
|
|
12.5 % |
(1.2 pt) |
(0.6 pt) |
Operating Income |
|
|
|
|
|
474 |
(27.5)% |
(23.7)% |
eCAPEX |
|
|
|
|
|
318 |
(5.1)% |
(6.0)% |
eCAPEX / Revenues |
|
|
|
|
|
4.1 % |
(0.2 pt) |
(0.2 pt) |
Accelerated business
transformation
The shift in customers' usage from traditional
voice solutions to purely digital communication services
accelerated during the pandemic. As a result of growth in IT and
Integration Services, despite difficulties in the supply of
electronic components, as well as the performance of mobile,
revenues for the Enterprise segment were up in the
fourth quarter compared to 2020 (+0.7%), and returned to growth for
the full year (+0.5%).
Revenues for IT and Integration
Services now account for more than 41% of Enterprise
revenues, an increase of 2 points from 2020.
This accelerated transition from high-margin
legacy activities to the Group's new growth drivers explains the
8.3% decline in 2021 EBITDAaL, which was also
affected by the employee shareholding operation at the end of the
year. Against this backdrop, 2022 EBITDAaL is still expected to
decline slightly and the objective of the future general management
of Enterprise will be to return to growth from 2023.
International Carriers & Shared
Services
In millions of euros |
|
4Q 2021 |
changecomparablebasis |
changehistoricalbasis |
|
12M 2021 |
changecomparablebasis |
changehistoricalbasis |
Revenues |
|
381 |
2.3 % |
2.9 % |
|
1,515 |
4.2 % |
4.5 % |
Wholesale |
|
264 |
1.0 % |
2.0 % |
|
1,056 |
1.0 % |
1.7 % |
Other revenues |
|
117 |
5.2 % |
5.1 % |
|
460 |
12.3 % |
11.5 % |
EBITDAaL |
|
|
|
|
|
(237) |
(27.9)% |
3.0 % |
EBITDAaL / Revenues |
|
|
|
|
|
(15.6)% |
(2.9 pt) |
1.2 pt |
Operating Income |
|
|
|
|
|
1,217 |
na |
na |
eCAPEX |
|
|
|
|
|
243 |
168.1 % |
82.7 % |
eCAPEX / Revenues |
|
|
|
|
|
16.0 % |
9.8 pt |
6.9 pt |
Revenues from International
Carriers and Shared Services grew 2.3% in the fourth quarter.
International wholesale services also rose slightly. Other revenues
continue to benefit from growth in Orange Marine's cable-laying and
survey activities, albeit to a lesser extent than in previous
quarters.
The decline in EBITDAaL in 2021
(-27.9%) was primarily due to increased sponsoring costs related to
rights for the 2024 Paris Olympic Games and higher payroll costs
related to the 2021 employee shareholding program.
Mobile Financial Services
In millions of euros |
|
|
|
|
|
12M 2021 |
changecomparablebasis |
changehistoricalbasis |
Net Banking Income (NBI) |
|
|
|
|
|
109 |
57.0 % |
57.8 % |
Cost of bank credit risk |
|
|
|
|
|
(46) |
46.3 % |
46.3 % |
Operating Income |
|
|
|
|
|
(182) |
9.3 % |
7.0 % |
eCAPEX |
|
|
|
|
|
24 |
(26.8)% |
(20.1)% |
EBITDAaL
improving
The level of Net Banking Income
(NBI) increased strongly from 69 million euros in 2020 to
109 million euros in 2021 (+57.0%). This performance resulted
from growth, both in volume and value, of the customer base which
reached 1.7 million customers in Europe and 0.7 million
in Africa. In France, almost all new customers subscribe to paid
offers.
Growth in NBI drove up EBITDAaL,
which improved by 34 million euros in 2021.
Calendar of upcoming events
26 April 2022 - Publication of First-Quarter
2022 results19 May 2022 - Annual Shareholders Meeting28 July 2022 -
Publication of First Half-Year 2022 results
Contacts
Press: Sylvain Brunosylvain.bruno@orange.com Tom
Wrighttom.wright@orange.com |
Financial communication: (analysts and investors)Patrice Lambert-de
Diesbachp.lambert@orange.com Aurélia
Rousselaurelia.roussel@orange.comAndrei
Dragoliciandrei.dragolici@orange.comLouise
Racinelouise.racine@orange.comHong Hai
Vuonghonghai.vuong@orange.com |
Disclaimer
This press release contains forward-looking
statements about Orange’s financial situation, results of
operations and strategy. Although we believe these statements are
based on reasonable assumptions, they are subject to numerous risks
and uncertainties, including matters not yet known to us or not
currently considered material by us, and there can be no assurance
that anticipated events will occur or that the objectives set out
will actually be achieved. More detailed information on the
potential risks that could affect our financial results is included
in the Universal Registration Document filed on 17 March 2021
with the French Financial Markets Authority (AMF) and in the annual
report (Form 20-F) filed on 18 March 2021 with the U.S. Securities
and Exchange Commission. Forward-looking statements speak only as
of the date they are made. Other than as required by law, Orange
does not undertake any obligation to update them in light of new
information or future developments.
Appendix 1: financial key
indicators
Quarterly data
In millions of euros |
|
4Q 2021 |
4Q 2020comparablebasis |
4Q 2020historicalbasis |
variationcomparablebasis |
changehistoricalbasis |
Revenues |
|
11,148 |
11,097 |
10,917 |
0.5 % |
2.1 % |
France |
|
4,658 |
4,727 |
4,744 |
(1.5)% |
(1.8)% |
Europe |
|
2,833 |
2,875 |
2,715 |
(1.5)% |
4.3 % |
Africa & Middle-East |
|
1,687 |
1,548 |
1,515 |
9.0 % |
11.4 % |
Enterprise |
|
2,053 |
2,038 |
2,050 |
0.7 % |
0.2 % |
International Carriers & Shared Services |
|
381 |
372 |
370 |
2.3 % |
2.9 % |
Intra-Group eliminations |
|
(464) |
(463) |
(477) |
|
|
EBITDAaL (1) |
|
3,179 |
3,201 |
3,182 |
(0.7)% |
(0.1)% |
o/w Telecom activities |
|
3,225 |
3,259 |
3,241 |
(1.1)% |
(0.5)% |
As % of revenues |
|
28.9 % |
29.4 % |
29.7 % |
(0.4 pt) |
(0.8 pt) |
o/w Mobile Financial Services |
|
(46) |
(59) |
(59) |
22.1 % |
22.1 % |
eCAPEX |
|
2,106 |
2,245 |
2,247 |
(6.2)% |
(6.3)% |
o/w Telecom activities |
|
2,096 |
2,237 |
2,238 |
(6.3)% |
(6.3)% |
as % of revenues |
|
18.8 % |
20.1 % |
20.5 % |
(1.3 pt) |
(1.7 pt) |
o/w Mobile Financial Services |
|
10 |
9 |
9 |
11.8 % |
11.8 % |
EBITDAaL -
eCAPEX |
|
1,073 |
956 |
936 |
12.3 % |
14.7 % |
(1) EBITDAaL adjustments are
described in Appendix 2.
31 December data
In millions of euros |
|
12M 2021 |
12M 2020comparablebasis |
12M 2020historicalbasis |
variationcomparablebasis |
changehistoricalbasis |
Revenues |
|
42,522 |
42,201 |
42,270 |
0.8 % |
0.6 % |
France |
|
18,092 |
18,394 |
18,461 |
(1.6)% |
(2.0)% |
Europe |
|
10,579 |
10,665 |
10,580 |
(0.8)% |
(0.0)% |
Africa & Middle-East |
|
6,381 |
5,770 |
5,834 |
10.6 % |
9.4 % |
Enterprise |
|
7,757 |
7,718 |
7,807 |
0.5 % |
(0.6)% |
International Carriers & Shared Services |
|
1,515 |
1,454 |
1,450 |
4.2 % |
4.5 % |
Intra-Group eliminations |
|
(1,802) |
(1,801) |
(1,861) |
|
|
EBITDAaL (1) |
|
12,566 |
12,635 |
12,680 |
(0.5)% |
(0.9)% |
o/w Telecom activities |
|
12,696 |
12,799 |
12,839 |
(0.8)% |
(1.1)% |
As % of revenues |
|
29.9 % |
30.3 % |
30.4 % |
(0.5 pt) |
(0.5 pt) |
France |
|
6,867 |
7,073 |
7,163 |
(2.9)% |
(4.1)% |
Europe |
|
2,830 |
2,914 |
2,932 |
(2.9)% |
(3.5)% |
Africa & Middle-East |
|
2,265 |
1,939 |
1,964 |
16.8 % |
15.3 % |
Enterprise |
|
970 |
1,058 |
1,023 |
(8.3)% |
(5.2)% |
International Carriers & Shared Services |
|
(237) |
(185) |
(244) |
(27.9)% |
3.0 % |
o/w Mobile Financial Services |
|
(131) |
(165) |
(160) |
20.7 % |
18.3 % |
Operating Income |
|
2,521 |
5,537 |
5,521 |
(54.5)% |
(54.3)% |
o/w Telecom activities |
|
2,702 |
5,736 |
5,715 |
(52.9)% |
(52.7)% |
o/w Mobile Financial Services |
|
(182) |
(200) |
(195) |
9.3 % |
7.0 % |
Consolidated net income |
|
778 |
|
5,055 |
|
(84.6)% |
Net income attributable to equity owners of the Group |
|
233 |
|
4,822 |
|
(95.2)% |
eCAPEX |
|
7,660 |
7,103 |
7,132 |
7.8 % |
7.4 % |
o/w Telecom activities |
|
7,636 |
7,070 |
7,102 |
8.0 % |
7.5 % |
as % of revenues |
|
18.0 % |
16.8 % |
16.8 % |
1.2 pt |
1.2 pt |
o/w Mobile Financial Services |
|
24 |
33 |
30 |
(26.8)% |
(20.1)% |
EBITDAaL -
eCAPEX |
|
4,906 |
5,532 |
5,548 |
(11.3)% |
(11.6)% |
Organic cash-flow (telecom activities) |
|
2,401 |
|
2,494 |
|
(3.7)% |
(1) EBITDAaL adjustments are
described in Appendix 2.
In millions of euros |
|
December 312021 |
December 31.2020 |
Net financial debt (1) |
|
24,269 |
23,489 |
Ratio of financial debt /
EBITDAaL from telecom activities
(2) |
|
1.91 |
1.83 |
(1) Net financial debt as defined and
used by Orange does not include Mobile Financial Services
activities, for which this concept is not relevant.
(2) The ratio of net financial debt
to EBITDAaL for telecoms activities is calculated as the ratio of
the Group's net financial debt compared to EBITDAaL for telecoms
activities calculated over the previous 12 months.
Appendix 2: adjusted data to income
statement items
Quarterly data
|
|
4Q 2021 |
|
4Q 2020historical basis |
In millions of euros |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
Revenues |
|
11,148 |
- |
11,148 |
|
10,917 |
- |
10,917 |
External purchases |
|
(4,919) |
(20) |
(4,939) |
|
(4,877) |
(6) |
(4,883) |
Other operating income |
|
243 |
53 |
296 |
|
201 |
- |
201 |
Other operating expense |
|
(217) |
(92) |
(309) |
|
(174) |
(47) |
(221) |
Labor expenses |
|
(2,270) |
(1,255) |
(3,525) |
|
(2,132) |
(59) |
(2,190) |
Operating taxes and levies |
|
(363) |
(5) |
(368) |
|
(340) |
- |
(340) |
Gains (losses) on disposal of fixed assets, investments and
activities |
|
na |
2,133 |
2,133 |
|
na |
155 |
155 |
Restructuring costs |
|
na |
(47) |
(47) |
|
na |
(14) |
(14) |
Depreciation and amortization of financed assets |
|
(21) |
- |
(21) |
|
(18) |
- |
(18) |
Depreciation and amortization of right-of-use assets |
|
(388) |
- |
(388) |
|
(365) |
- |
(365) |
Impairment of right-of-use assets |
|
0 |
(31) |
(31) |
|
- |
(52) |
(52) |
Interests expenses on liabilities related to financed assets |
|
(0) |
0 |
na |
|
(0) |
0 |
na |
Interests expenses on lease liabilities |
|
(34) |
34 |
na |
|
(29) |
29 |
na |
EBITDAaL |
|
3,179 |
771 |
na |
|
3,182 |
7 |
na |
Significant litigation |
|
(45) |
45 |
na |
|
(39) |
39 |
na |
Specific labor expenses |
|
(1,256) |
1,256 |
na |
|
(52) |
52 |
na |
Fixed assets, investments and business portfolio review |
|
2,133 |
(2,133) |
na |
|
155 |
(155) |
na |
Restructuring program costs |
|
(78) |
78 |
na |
|
(66) |
66 |
na |
Acquisition and integration costs |
|
(18) |
18 |
na |
|
(21) |
21 |
na |
Interests expenses on liabilities related to financed assets |
|
na |
(0) |
(0) |
|
na |
(0) |
(0) |
Interests expenses on lease liabilities |
|
na |
(34) |
(34) |
|
na |
(29) |
(29) |
31 December data
|
|
12M 2021 |
|
12M 2020historical basis |
In millions of euros |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
|
Adjusted data, |
Presentation adjustments, |
Income statement, |
Revenues |
|
42,522 |
- |
42,522 |
|
42,270 |
- |
42,270 |
External purchases |
|
(17,950) |
(23) |
(17,973) |
|
(17,684) |
(6) |
(17,691) |
Other operating income |
|
730 |
53 |
783 |
|
604 |
- |
604 |
Other operating expense |
|
(535) |
(165) |
(700) |
|
(560) |
(229) |
(789) |
Labor expenses |
|
(8,626) |
(1,291) |
(9,917) |
|
(8,465) |
(25) |
(8,490) |
Operating taxes and levies |
|
(1,890) |
(36) |
(1,926) |
|
(1,924) |
- |
(1,924) |
Gains (losses) on disposal of fixed assets, investments and
activities |
|
na |
2,507 |
2,507 |
|
na |
228 |
228 |
Restructuring costs |
|
na |
(331) |
(331) |
|
na |
(25) |
(25) |
Depreciation and amortization of financed assets |
|
(84) |
- |
(84) |
|
(55) |
- |
(55) |
Depreciation and amortization of right-of-use assets |
|
(1,481) |
- |
(1,481) |
|
(1,384) |
- |
(1,384) |
Impairment of right-of-use assets |
|
0 |
(91) |
(91) |
|
- |
(57) |
(57) |
Interests expenses on liabilities related to financed assets |
|
(1) |
1 |
na |
|
(1) |
1 |
na |
Interests expenses on lease liabilities |
|
(120) |
120 |
na |
|
(120) |
120 |
na |
EBITDAaL |
|
12,566 |
744 |
na |
|
12,680 |
6 |
na |
Significant litigation |
|
(134) |
134 |
na |
|
(211) |
211 |
na |
Specific labor expenses |
|
(1,276) |
1,276 |
na |
|
(12) |
12 |
na |
Fixed assets, investments and business portfolio review |
|
2,507 |
(2,507) |
na |
|
228 |
(228) |
na |
Restructuring program costs |
|
(422) |
422 |
na |
|
(83) |
83 |
na |
Acquisition and integration costs |
|
(51) |
51 |
na |
|
(37) |
37 |
na |
Interests expenses on liabilities related to financed assets |
|
na |
(1) |
(1) |
|
na |
(1) |
(1) |
Interests expenses on lease liabilities |
|
na |
(120) |
(120) |
|
na |
(120) |
(120) |
Appendix 3: economic CAPEX to
investments in property, plant and intangible
investment
In millions of euros |
|
4Q 2021 |
4Q 2020historicalbasis |
|
12M 2021 |
12M 2020historicalbasis |
eCAPEX |
|
2,106 |
2,247 |
|
7,660 |
7,132 |
Elimination of proceeds from sales of property, plant and equipment
and intangible assets |
|
64 |
179 |
|
163 |
444 |
Telecommunication licenses |
|
213 |
922 |
|
926 |
969 |
Financed assets |
|
16 |
68 |
|
40 |
241 |
Investments in property, plant and equipment and intangible
assets |
|
2,399 |
3,415 |
|
8,789 |
8,787 |
Appendix 4: key performance
indicators
In thousand, at the end of the period |
|
December 312021 |
|
December 312020 |
Number of convergent customers |
|
11,533 |
|
11,295 |
Number of mobile accesses (excluding MVNOs)
(1) |
|
224,311 |
|
215,026 |
o/w |
Convergent customers mobile accesses |
|
20,937 |
|
20,272 |
|
Mobile only accesses |
|
203,375 |
|
194,754 |
o/w |
Contract customers mobile accesses |
|
82,026 |
|
78,300 |
|
Prepaid customers mobile accesses |
|
142,285 |
|
136,726 |
Number of fixed accesses (2) |
|
46,365 |
|
47,168 |
|
Fixed Retail accesses |
|
31,119 |
|
31,501 |
|
|
Fixed Broadband accesses |
|
23,491 |
|
22,701 |
|
|
o/w |
Very high‑speed broadband fixed accesses |
|
12,302 |
|
10,113 |
|
|
|
Convergent customers fixed accesses |
|
11,533 |
|
11,295 |
|
|
|
Fixed accesses only |
|
11,958 |
|
11,405 |
|
|
Fixed Narrowband accesses |
|
7,628 |
|
8,800 |
|
Fixed Wholesale accesses |
|
15,246 |
|
15,667 |
Group total accesses (1+2) |
|
270,676 |
|
262,194 |
2020 data is presented on a comparable
basis.
Key indicators by country are presented in the
"Orange investors data book 4Q 2021," available at www.orange.com
under Finance/Results: www.orange.com/en/consolidated-results
Appendix 5: glossary
Key figures
Data on a comparable basis: data based on
comparable accounting principles, scope of consolidation and
exchange rates are presented for previous periods. The transition
from data on an historical basis to data on a comparable basis
consists of keeping the results for the period ended and then
restating the results for the corresponding period of the preceding
year for the purpose of presenting, over comparable periods,
financial data with comparable accounting principles, scope of
consolidation and exchange rate. The method used is to apply to the
data of the corresponding period of the preceding year, the
accounting principles and scope of consolidation for the period
just ended as well as the average exchange rate used for the income
statement for the period ended. Changes in data on a comparable
basis reflect organic business changes. Data on a comparable basis
is not a financial aggregate as defined by IFRS and may not be
comparable to similarly-named indicators used by other
companies.
EBITDAaL or “EBITDA after Leases”: operating
income (i) before depreciation and amortization of fixed assets,
effects resulting from business combinations, reclassification of
cumulative translation adjustment from liquidated entities,
impairment of goodwill and fixed assets, share of profits (losses)
of associates and joint ventures, (ii) after interest on debts
related to financed assets and on lease liabilities, and (iii)
adjusted for significant litigation, specific labor expenses, fixed
assets, investments and businesses portfolio review, restructuring
programs costs, acquisition and integration costs and, where
appropriate, other specific elements. EBITDAaL is not a financial
aggregate as defined by IFRS standards and may not be directly
comparable to similarly-named indicators in other companies.
eCAPEX or “economic CAPEX”: (i) acquisitions of
property, plant and equipment and intangible assets, excluding
telecommunications licenses and financed assets, (ii) less the
price of disposal of property, plant and equipment and intangible
assets. eCAPEX is not a financial performance indicator as defined
by IFRS standards and may not be directly comparable to indicators
referenced by similarly-named indicators in other companies.
Organic Cash Flow (telecoms activities): for the
perimeter of the telecoms activities, net cash provided by
operating activities, minus (i) lease liabilities repayments and
debts related to financed assets repayments, and (ii) purchases and
sales of property, plant and equipment and intangible assets, net
of the change in the fixed assets payables, (iii) excluding effect
of telecommunication licenses paid and significant litigations paid
or received. Organic Cash Flow (telecoms activities) is not a
financial aggregate defined by IFRS and may not be comparable to
similarly-named indicators used by other companies.
Retail services (B2C + B2B): aggregation of
revenues from (i) Convergent services, (ii) Mobile only services,
(iii) Fixed only services and (iv) IT & integration services
(see definitions). Retail Services (B2C+B2B) revenues include all
revenues of a given scope excluding revenues from wholesale
services, equipment sales and other revenues (see definitions).
Performance indicators
Fixed retail accesses: number of fixed broadband
accesses (xDSL (ADSL and VDSL), FTTx, cable, Fixed-4G (fLTE) and
other broadband accesses (satellite, Wimax and others)) and fixed
narrowband accesses (mainly PSTN) and payphones.
Fixed wholesale accesses: number of fixed
broadband and narrowband wholesale accesses operated by Orange.
Convergence
Convergent services: customer base and revenues
from B2C Convergent retail offers, excluding equipment sales (see
definition) defined as an offer combining at least a broadband
access (xDSL, FTTx, cable or Fixed-4G (fLTE) with cell-lock) and a
mobile voice contract (excluding MVNOs).
Convergent ARPO: average quarterly revenues per
convergent offer (ARPO) calculated by dividing revenues from retail
Convergent services offers invoiced to B2C customers generated over
the past three months (excluding IFRS 15 adjustments) by the
weighted average number of retail Convergent offers over the same
period. ARPO is expressed by monthly revenues per convergent
offer.
Mobile
only services
Mobile only Services: revenues from mobile
offers (mainly outgoing calls: voice, SMS and data) invoiced to
retail customers, excluding convergent services and equipment sales
(see definitions). The customer base includes customers with a
contract excluding retail convergence, machine-to-machine contracts
and prepaid cards.
Mobile only ARPO: average quarterly revenues
from Mobile only (ARPO) calculated by dividing revenues from Mobile
only retail services (excluding machine-to-machine and IFRS 15
adjustments) generated over the past three months by the weighted
average of Mobile only customers (excluding machine-to-machine)
over the same period. The ARPO is expressed as monthly revenues per
Mobile only customer.
Fixed
only services
Fixed only services: revenues from fixed retail
offers, excluding B2C convergent offers and equipment sales (see
definitions). It includes (i) fixed narrowband services
(conventional fixed telephony), (ii) fixed broadband services, and
(iii) business solutions and networks (with the exception of
France, for which essential business solutions and networks are
supported by Enterprise). For the Enterprise segment, fixed-only
service revenues include sales of network equipment related to the
operation of voice and data services. The customer base consists of
fixed narrowband and fixed broadband customers, excluding retail
convergence customers.
Fixed only broadband ARPO: average quarterly
revenues from fixed only broadband (ARPO) calculated by dividing
the revenue from fixed only broadband retail services (excluding
IFRS 15 adjustments) generated over the past three months by the
weighted average of fixed only broadband customers over the same
period. ARPO is expressed as monthly revenues per fixed only
broadband customer.
IT & integration
services
IT & Integration services: revenues from
unified communication and collaboration services (Local Area
Network and telephony, advising, integration and project
management), hosting and infrastructure services (including Cloud
Computing), applications services (customer relations management
and other applications services), security services, video
conferencing offers, machine-to-machine services (excluded
connectivity) as well as sales of equipment related to the above
products and services.
Wholesale
Wholesale: revenues from other carriers consists
of (i) mobile services to other carriers including incoming
traffic, visitor roaming, network sharing, national roaming and
Mobile Virtual Network Operators (MVNOs), and (ii) fixed services
to other carriers including national networking, services to
international carriers, high-speed and very high-speed broadband
access (fiber access, unbundling of telephone lines and xDSL access
sales) and the sale of telephone lines on the wholesale market.
Equipment sales
Equipment sales: revenues from all mobile and
fixed equipment sales, excluding (i) equipment sales associated
with the supply of IT & Integration services, (ii) sales of
network equipment related to the operation of voice and data
services in the Enterprise operating segment, and (iii) equipment
sales to dealers and brokers.
Other revenues
Other revenues: revenues including (i) equipment
sales to brokers and dealers, (ii) portal, (iii) on-line
advertising revenues, (iv) corporate transversal business line
activities, and (v) other miscellaneous revenues.
1
Unless otherwise
stated, the changes presented in this press release are on a
comparable basis2 Before taking into account the pending
acquisition of Voo in Belgium3 Retail services (B2C and B2B). See
definition in the attached glossary.4 Unless otherwise stated, the
changes presented in this press release are on a comparable basis5
Scope corresponding
to Group indirect costs excluding (i) Africa & Middle East and
Mobile Financial Services, and (ii) labor expenses, other network
expenses and IT expenses for Enterprise IT and integration
services.6 Revenue related to the public switched telephone
network.
- PR_Orange_FY2021_results_EN_170222
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