Orange: Strong 2024 results, 2025 Organic Cash Flow target raised

Core Insights - The company reported strong financial results for 2024, achieving revenue of €40,260 million, up 1.2% year-on-year, and EBITDAaL of €12,109 million, an increase of 2.7% year-on-year [1][19] - The organic cash flow target for 2025 has been raised to at least €3.6 billion, reflecting confidence in continued operational performance [2][19] - The successful execution of the "Lead the Future" strategic plan is highlighted as a key driver of growth, with significant operational achievements across various regions [1][2] Financial Performance - Revenues for Q4 2024 were €10,426 million, a slight increase of 0.5% compared to Q4 2023 [1][59] - EBITDAaL for Q4 2024 reached €3,252 million, representing a growth of 3.2% year-on-year [1][59] - Operating income rose by 14.8% to €5,116 million, driven by increased EBITDAaL and reduced expenses [1][13] Regional Performance - France saw a revenue increase of 0.4% to €17,798 million, with retail services growing by 1.4% [24][25] - The Africa & Middle East region delivered robust performance with annual revenues up 11.1% to €7,683 million, driven by mobile data and Orange Money [34][35] - Europe experienced a revenue decline of 2.1% to €7,101 million, primarily due to a decrease in wholesale services [28][29] Operational Highlights - The company achieved a significant increase in mobile and fixed broadband customer bases, with mobile accesses reaching 253 million globally [10][30] - The implementation of digital technologies, including AI, is being accelerated to enhance service offerings and operational efficiency [5][10] - The company maintained its leadership position in convergence services in Europe, with a total of 9.1 million convergent customers [10][25] Strategic Initiatives - The creation of the MASORANGE joint venture in Spain is noted as a strategic move, contributing to revenue growth and operational synergies [1][56] - The company is focusing on operational efficiency, achieving two-thirds of its efficiency program target for 2025 [10][19] - A new employment and professional development agreement was signed in France to support workforce adaptation to technological changes [6][10] Sustainability and ESG - The company has exceeded its target of reducing GHG emissions by 30% by 2025, achieving a 37.4% reduction in 2023 [21][22] - Strong ESG ratings were reported, with MSCI rating the company as A and EcoVadis awarding a Platinum score [21][22]