Orange Gets Profit Boost From EE Sale
July 26 2016 - 2:10AM
Dow Jones News
PARIS—France's largest telecoms company Orange SA on Tuesday
reported a sharp rise in first-half net profit mainly due to the
sale of its U.K. joint venture EE, which was completed in
January.
Net profit jumped to €3.17 billion ($3.48 billion) in the first
half while revenue rose 2.7% to €20.8 billion as the former state
monopoly posted strong sales growth in Spain.
Orange is up against fierce competition in many of its markets,
particularly in Europe, where telecom companies are competing hard
for market share by cutting prices for mobile and broadband
services. In January it completed the sale of its 50% stake in the
U.K.-based mobile telephone operator EE to BT Group PLC for £ 3.44
billion ($4.51 billion) in cash and a 4% stake in BT Group.
For the three months to June 30, Orange said adjusted earnings
before interest, taxes, depreciation and amortization rose 2.3% to
€3.34 billion on revenue of €10.07 billion. Analysts had forecast
adjusted Ebitda of €3.34 billion on sales of €10.12 billion for the
period, according to data compiled by FactSet.
In France, the company's largest market, Orange continued to
gain customers but earnings and sales declined, hit by mobile
services.
Orange confirmed its 2016 guidance that restated Ebitda will be
higher than last year on a comparable basis. It also said it plans
to propose a dividend of €0.60 a share.
Write to Nick Kostov at Nick.Kostov@wsj.com
(END) Dow Jones Newswires
July 26, 2016 02:55 ET (06:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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