Orange: Orange posts robust first-quarter results and confirms its 2025 targets

Core Insights - Orange reported strong first-quarter results for 2025, achieving revenues of €9,911 million, a 0.6% increase year-on-year, and confirmed its financial targets for the year [1][6][11] - The company's EBITDAaL grew by 3.2% to €2,480 million, reflecting solid retail performance and operational efficiency improvements [8][41] - The Africa & Middle East region was a significant growth driver, with revenues increasing by 12.8% to €2,047 million, supported by strong mobile data and digital service offerings [21][22] Financial Performance - Total revenues for Q1 2025 reached €9,911 million, up from €9,849 million in Q1 2024, driven by retail services growth of 2.4% [1][5] - EBITDAaL for the quarter was €2,480 million, marking a 3.2% increase compared to €2,402 million in the previous year [8][41] - eCAPEX for the quarter was €1,463 million, a 6.6% increase from €1,372 million in Q1 2024 [8][41] Regional Performance - In France, revenues decreased by 1.3% to €4,297 million, but retail services excluding PSTN grew by 1.5% [15][16] - The Africa & Middle East region saw exceptional growth, with mobile data revenues up 21.0% and Orange Money revenues up 22.1% [21][22] - Europe remained stable with revenues of €1,746 million, a slight decrease of 0.2%, while retail services grew by 2.5% [24][25] Business Segments - Orange Cyberdefense reported solid growth of 8% in the B2B market, primarily driven by performance in France [4] - The Orange Business segment experienced a revenue decline of 4.9% to €1,851 million, impacted by lower fixed-only and mobile revenues [28] - TOTEM, the TowerCo, achieved revenues of €178 million, up 2.5% year-on-year, with a tenancy ratio of 1.43 co-tenants per site [30][31] Strategic Developments - The company signed three agreements with trade unions in France to enhance employment and career path planning, focusing on training and recruitment [5] - MASORANGE, the joint venture in Spain, reported a 2.6% revenue increase and achieved significant synergies, targeting over €300 million in synergies for 2025 [34][36][37]