Orange 2023 core profit beats forecast on solid Europe, higher pricing
By Diana Mandia
(Reuters) -France's biggest telecoms operator Orange met full-year earnings expectations on Thursday helped by a solid performance in Europe and higher pricing.
Telecom groups raised prices of subscriptions in 2023 to offset the impact of inflation amid a sluggish market and fierce competition.
"We have achieved all our financial targets for 2023. These results are a testament to our ability to execute and advance our major strategic projects," CEO Christel Heydemann said in a statement.
Orange's annual earnings before interest, taxes, depreciation and amortisation after leases (EBITDAaL) rose 1.3% to 13.04 billion euros ($13.99 billion) on a comparable basis versus 13 billion euros forecast by analysts in a poll compiled by the company.
Core profit jumped 5.8% in Europe, driven by Orange's second-biggest market Spain which delivered year-on-year growth for the first time since 2018. Africa and the Middle East posted strong growth in both revenue at 11.4% and EBITDAaL at 12.7%, Heydemann said.
In its home market France, Orange saw a 3.6% drop in EBITDAaL to 6.36 billion euros.
For 2024, the group expects low single-digit growth in core operating profit, with organic cash flow of at least 3.8 billion euros.
Orange will propose a dividend of 0.72 euros per share for 2023, and set a minimum dividend target of 0.75 euros per share for fiscal 2025.
The telecom operator reiterated its confidence that the European Union's antitrust regulator would approve the Spanish tie-up of Orange and MasMovil.
Brussels has extended the deadline for the decision until Feb. 22. Orange said it expected to close the deal by the end of March.
($1 = 0.9319 euros)
(Reporting by Diana Mandiá in Gdansk; editing by Milla Nissi and Jason Neely)