After having presented its Engage 2025 development plan with great fanfare in early December, Orange is publishing solid financial results for 2019, even if the shareholders find fault with it. On the stock market, this publication is received quite favorably (+ 2% to € 13.10), but not enough to allow the share price to return to its level of the end of November (€ 15).
Stéphane Richard emphasizes the group’s good growth in Africa and recalls that 2019 was a particularly difficult year for telecom operators from a competitive point of view. The opportunity also for Orange to recall the heavy investments made in infrastructure, accompanying the democratization of very high speed.
Here’s what to remember from these financial results
- The turnover of Orange reached 42.2 billion euros in fiscal 2019, up slightly by 0.6%. The margin is more than 30%.
- In detail, sales fell slightly in France and Spain but rose sharply (+ 6%) in the Middle East and Africa.
- Orange has 7.3 million fiber customers, making it the European leader. In France, 745,000 recruitments were made on the fiber in 2019 (net of terminations).
- The investments of Orange rose in the era of large deployments (fiber and 5G): 7.3 billion euros in total (+ 0.7%), of which 4 billion in France.
- Unlike Orange Money, which is a success in Africa, Orange Bank is still largely in deficit (186 million losses over the year) and its recruitment rate is disappointing. The bank is said to have just over 500,000 customers and has a target of 2 million by 2025, with profitability achieved by 2022.