Press release
Financial information at
Orange achieves all of its 2021 targets and expects to generate organic cash flow of at least
In millions of euros | 4Q 2021 | change comparable basis | change historical basis | 12M 2021 | change comparable basis | change historical basis | ||
Revenues | 11,148 | 0.5 % | 2.1 % | 42,522 | 0.8 % | 0.6 % | ||
EBITDAaL | 3,179 | (0.7)% | (0.1)% | 12,566 | (0.5)% | (0.9)% | ||
Operating Income | 2,521 | (54.5)% | (54.3)% | |||||
Consolidated net income | 778 | (84.6)% | ||||||
eCAPEX (excluding licenses) | 2,106 | (6.2)% | (6.3)% | 7,660 | 7.8 % | 7.4 % | ||
EBITDAaL - eCAPEX | 1,073 | 12.3 % | 14.7 % | 4,906 | (11.3)% | (11.6)% | ||
Organic cash-flow (telecom activities) | 2,401 | (3.7)% |
- Revenues up 0.8%1 for the full year 2021, driven by the solid performance of
Africa &Middle East (+10.6%) and a strong increase in equipment sales (+8.5%) - Excellent performance in Fiber: 11.8 million fiber (FTTH) customers (+22.1%) out of 56.5 million connectable households (+19.7%). In
France , the FTTH customer base recorded a year-on-year increase of 31.7%. - EBITDAaL 0.5% lower for the year, in line with the target
Excluding the 2021 employee shareholding program, EBITDAaL was up 0.8% as a result of the notable performances in
- eCAPEX rose 7.8% in 2021 to 7.7 billion euros, in line with the target, after the high level of co-financing and the pandemic-related slowdown in investment seen in 2020. eCAPEX began to decline in the second half of the year.
- Organic cash-flow from telecoms activities stood at 2.4 billion euros, fully in line with the goal to exceed 2.2 billion euros.
- The Shareholders' Meeting of
19 May 2022 will decide on the distribution of a dividend of 0.70 euros per share.
Orange has set itself the following targets for 2022:
- EBITDAaL to increase by 2.5% to 3%
- eCAPEX no greater than 7.4 billion euros2
- Organic cash flow from telecoms activities of at least 2.9 billion euros
- Net debt/EBITDAaL ratio for telecoms activities unchanged at around 2x in the medium term
- Maintaining the dividend for the financial year 2022 at 0.70 euros including an interim dividend of
0.30 euros inDecember 2022
For 2023, Orange confirms all of its commitments including organic cashflow from telecoms activities of at least
Commenting on the publication of these results,
“The Group’s results reflect a solid 2021 performance. Indeed, Orange has delivered on its commitments and is confirming all its objectives for 2023, including organic cashflow of between 3.5 and
Our European leadership in convergence has also been confirmed with 11.5 million clients, and the integration of TKR in
In
The dynamic in our
Our ambitious moves into cybersecurity and banking are paying off. With revenues of
Finally, our operational efficiency program “Scale Up” is well under way and we are driving our efforts forward in this regard.
The Group’s commercial performance has also been excellent, actively contributing to the achievement of our 2021 objectives in a context marked by important challenges: the move from copper to Fiber, the transition to providing IT services and also the turnaround of the situation in
I’d like to express my gratitude to all of the Group’s teams right around the world who, thanks to their relentless application, have allowed us to deliver this excellent performance.
With my mandate as Chairman and Chief Executive drawing to a close in the coming weeks, it is with pride that I look upon everything that we have accomplished over these past twelve years. I am confident about Orange’s future, that of a solid company that has shown itself capable of capturing new growth opportunities while at the same time strengthening its network leadership."
___________________________________________________________________________________
The Board of Directors of
More detailed information on the Group's financial results and performance indicators is available on the Orange website at https://www.orange.com/en/consolidated-results.
Comments on Group key figures
Revenues
The Orange group posted 2021 revenues of 42.5 billion euros, a year-on-year increase of 0.8% after 0.5% growth in the fourth quarter.
Retail services3 continued to expand, driven by convergent services (+1.9% year-on-year) in
Customer base growth
There were 11.5 million convergent customers Group-wide at
Mobile services had 224.3 million access lines at
Fixed services totaled 46.4 million access lines at
EBITDAaL
Group EBITDAaL stood at 12.6 billion euros in 2021 (-0.5%), in line with the objective of "stable but negative" EBITDAaL. This result included an expense of 172 million euros related to the 2021 employee shareholding program that involves approximately 1% of share capital and mainly concerns
EBITDAaL from telecom activities was 12.7 billion euros, down 0.8%.
Operating income
Group operating income stood at 2,521 million euros in 2021, down from 5,537 million euros on a comparable basis in 2020.
This decrease was mainly due to the recognition in the first half 2021 of a goodwill impairment for
Net income
The Orange group's consolidated net income totaled 778 million euros in 2021, compared with 5,055 million euros in 2020.
This decline was linked to lower operating income as well as the 2.2 billion euros in tax income recognized at the end of 2020.
eCAPEX
Group eCAPEX was up 7.8% to 7,660 million euros in 2021, following the slowdown in investment related to the public health crisis and the significant co-financing received in 2020. This was in line with the stated target of between 7.6 billion euros and 7.7 billion euros.
At
Organic cash flow
Organic cash-flow from telecoms activities stood at 2.4 billion euros in 2021 (versus 2.5 billion euros in 2020), fully in line with the goal to exceed 2.2 billion euros.
Before allocation of the tax refund received in 2020, organic cash flow amounted to 2.7 billion euros, in keeping with the return to growth that began in 2020.
Net financial debt
The Orange group's net financial debt at
The net debt ratio at
“Scale Up” operational efficiency program
To ensure it achieves its objectives, in 2020 Orange launched the "Scale Up" operational efficiency program, thereby confirming its commitment to generating 1 billion euros in net savings from a defined scope5 of 13.8 billion euros in indirect costs in 2019.
By 2021 year-end, cumulative net savings of more than 300 million euros had been generated from within that scope versus 2019. These savings were mainly the result of a structural decline in the workforce and a change in working methods precipitated by the pandemic, with positive impacts on the cost base.
Against a backdrop of inflation and strong pressure on energy prices, Orange expects to achieve cumulative net savings of around 600 million euros by the end of 2022, a further step towards reaching its target of 1 billion euros by the end of 2023.
Changes in asset portfolio
On
On
Dividend
For the fiscal year 2021, the Shareholders' Meeting of
For fiscal year 2022, the 2023 Shareholders' Meeting will be asked to approve a maintained dividend of 0.70 euros per share. An interim dividend of 0.30 euros per share will be paid in
Review by operating segment
In millions of euros | 4Q 2021 | change comparable basis | change historical basis | 12M 2021 | change comparable basis | change historical basis | ||
Revenues | 4,658 | (1.5)% | (1.8)% | 18,092 | (1.6)% | (2.0)% | ||
Retail services (B2C+B2B) | 2,740 | 1.6 % | 1.6 % | 10,846 | 0.8 % | 0.8 % | ||
Convergence | 1,200 | 3.9 % | 3.9 % | 4,697 | 3.0 % | 3.0 % | ||
Mobile only | 577 | 4.0 % | 3.5 % | 2,276 | 1.8 % | 1.4 % | ||
Fixed only | 963 | (2.4)% | (2.1)% | 3,872 | (2.4)% | (2.2)% | ||
Wholesale | 1,302 | (9.3)% | (10.3)% | 5,313 | (8.4)% | (9.4)% | ||
Equipment sales | 403 | (5.7)% | (5.7)% | 1,226 | 3.3 % | 3.3 % | ||
Other revenues | 214 | 26.2 % | 26.5 % | 708 | 9.6 % | 9.9 % | ||
EBITDAaL | 6,867 | (2.9)% | (4.1)% | |||||
EBITDAaL / Revenues | 38.0 % | (0.5 pt) | (0.8 pt) | |||||
Operating Income | 2,653 | (28.8)% | (30.3)% | |||||
eCAPEX | 4,117 | 9.5 % | 9.9 % | |||||
eCAPEX / Revenues | 22.8 % | 2.3 pt | 2.5 pt |
Continued acceleration in retail services driven by an excellent commercial performance
Orange
In mobile, Orange France posted strong growth in net additions in the fourth quarter (+132,000 excluding M2M), mostly driven by the success of the Orange brand premium plans following the revamp of its offers in October. Despite still-fierce competition in the last quarter of the year, Orange managed to increase all its ARPOs, including the convergent ARPO which rose 1.50 euros year on year and now exceeds 70 euros. At the same time, Orange recorded the lowest churn rate for a fourth quarter in four years.
The financial results for the fourth quarter reflected this excellent operational performance. Revenues fell 1.5% as a result of lower co-financing levels that affected wholesale services but were stable (+0.2%) excluding co-financing, driven by retail services, where growth continued to accelerate (+1.6% in 4Q, +1.2% in 3Q, +0.4% in 2Q and -0.2% in 1Q). Excluding PSTN,6 retail services even increased 4.0%.
For the full year 2021, EBITDAaL fell 2.9% due to the co-financing received in 2020. Excluding this co-financing, EBITDAaL rose 1.5% despite the negative impact of around 100 million euros related to the employee shareholding program launched in October.
eCAPEX increased 9.5% from 2020 when it had dropped sharply due to the pandemic and the level of co-financing received from third parties. Having reached its peak, it began to decline in the second half of the year (-7.9%). Fiber network deployment has now exceeded 80% of 2023 targets, with 28.8 million households connectable to FTTH at the end of 2021 nationwide, including more than 16 million deployed directly in private areas.
In millions of euros | 4Q 2021 | change comparable basis | change historical basis | 12M 2021 | change comparable basis | change historical basis | ||
Revenues | 2,833 | (1.5)% | 4.3 % | 10,579 | (0.8)% | (0.0)% | ||
Retail services (B2C+B2B) | 1,854 | (1.8)% | 4.1 % | 7,046 | (2.3)% | (1.4)% | ||
Convergence | 704 | 4.1 % | 5.5 % | 2,720 | 0.1 % | 0.1 % | ||
Mobile only | 721 | (3.5)% | (3.4)% | 2,887 | (4.5)% | (5.0)% | ||
Fixed only | 314 | (13.9)% | 18.0 % | 1,087 | (7.2)% | 0.4 % | ||
IT & Integration services | 115 | 16.0 % | 13.8 % | 352 | 15.9 % | 13.7 % | ||
Wholesale | 509 | (2.8)% | 3.3 % | 1,886 | (2.9)% | (1.9)% | ||
Equipment sales | 425 | (1.0)% | 4.0 % | 1,490 | 8.4 % | 8.4 % | ||
Other revenues | 45 | 31.3 % | 34.3 % | 157 | 17.9 % | 17.1 % | ||
EBITDAaL | 2,830 | (2.9)% | (3.5)% | |||||
EBITDAaL / Revenues | 26.7 % | (0.6 pt) | (1.0 pt) | |||||
Operating Income | (2,933) | na | na | |||||
eCAPEX | 1,893 | 1.8 % | 2.5 % | |||||
eCAPEX / Revenues | 17.9 % | 0.5 pt | 0.4 pt |
Improved profitability
Revenues in
For the full year 2021,
The decline in EBITDAaL in 2021 was limited to 2.9%, reflecting a clear improvement in profitability in the second half of the year (with a stable performance) compared to the first half (-5.9%).
In
Sales figures for the quarter reflected the quest for balance between volume growth and value preservation in a particularly intense competitive environment. FTTH and mobile contract net additions remained positive, while fixed broadband net additions and convergent offers were slightly negative. In the year as a whole, offer segmentation and the attention paid to the customer experience resulted in a sharp reduction in the churn rate, a significant improvement in the development of convergent ARPO, and growth in the convergent, mobile contract and FTTH customer bases, while stabilizing that of fixed broadband.
In millions of euros | 4Q 2021 | change comparable basis | change historical basis | 12M 2021 | change comparable basis | change historical basis | ||
Revenues | 1,687 | 9.0 % | 11.4 % | 6,381 | 10.6 % | 9.4 % | ||
Retail services (B2C+B2B) | 1,469 | 10.8 % | 12.9 % | 5,579 | 12.8 % | 11.4 % | ||
Mobile only | 1,284 | 10.6 % | 12.6 % | 4,884 | 12.2 % | 10.5 % | ||
Fixed only | 178 | 14.2 % | 17.5 % | 664 | 17.3 % | 18.2 % | ||
IT & Integration services | 7 | (27.8)% | (22.5)% | 31 | 9.0 % | 23.0 % | ||
Wholesale | 178 | (1.5)% | 0.9 % | 654 | (4.7)% | (5.8)% | ||
Equipment sales | 31 | 2.1 % | 15.8 % | 112 | 16.5 % | 25.7 % | ||
Other revenues | 9 | (17.8)% | (15.4)% | 36 | (14.5)% | (16.1)% | ||
EBITDAaL | 2,265 | 16.8 % | 15.3 % | |||||
EBITDAaL / Revenues | 35.5 % | 1.9 pt | 1.8 pt | |||||
Operating Income | 1,291 | 27.6 % | 25.7 % | |||||
eCAPEX | 1,064 | 3.8 % | 2.7 % | |||||
eCAPEX / Revenues | 16.7 % | (1.1 pt) | (1.1 pt) |
Remarkable performance continues
This performance was driven by double-digit growth in retail services (+10.8% after +15.0% in the third quarter), thanks to mobile data (+25.2%) and fixed broadband (+23.5%), both of which recorded very strong momentum in customer base growth.
In the face of changes in Orange Money's market conditions in some of its coverage area, the Group adjusted its commercial strategy, most notably by reviewing its offer pricing. This led to an increase in Orange Money's active customer base and transaction volumes in all countries in the fourth quarter but led to a significant drop in revenues (-17.9%).
For the full year, EBITDAaL increased 16.8% and operating margin (EBITDAaL as a proportion of revenues) rose 2 points thanks to strict cost control.
These excellent results enable the Group to confirm all its medium-term goals in
Enterprise
In millions of euros | 4Q 2021 | change comparable basis | change historical basis | 12M 2021 | change comparable basis | change historical basis | ||
Revenues | 2,053 | 0.7 % | 0.2 % | 7,757 | 0.5 % | (0.6)% | ||
Fixed only | 900 | (5.0)% | (4.5)% | 3,633 | (4.8)% | (5.7)% | ||
Voice | 269 | (11.2)% | (11.0)% | 1,106 | (10.1)% | (10.6)% | ||
Data | 630 | (2.1)% | (1.4)% | 2,527 | (2.3)% | (3.3)% | ||
IT & Integration services | 885 | 2.9 % | 0.9 % | 3,195 | 5.4 % | 3.6 % | ||
Mobile * | 269 | 16.1 % | 16.1 % | 929 | 6.8 % | 6.8 % | ||
Mobile only | 164 | 1.6 % | 0.9 % | 636 | (1.2)% | (2.0)% | ||
Wholesale | 11 | (18.7)% | (18.7)% | 42 | (7.3)% | (7.3)% | ||
Equipment sales | 94 | 65.2 % | 68.7 % | 250 | 39.0 % | 43.0 % | ||
EBITDAaL | 970 | (8.3)% | (5.2)% | |||||
EBITDAaL / Revenues | 12.5 % | (1.2 pt) | (0.6 pt) | |||||
Operating Income | 474 | (27.5)% | (23.7)% | |||||
eCAPEX | 318 | (5.1)% | (6.0)% | |||||
eCAPEX / Revenues | 4.1 % | (0.2 pt) | (0.2 pt) |
Accelerated business transformation
The shift in customers' usage from traditional voice solutions to purely digital communication services accelerated during the pandemic. As a result of growth in IT and Integration Services, despite difficulties in the supply of electronic components, as well as the performance of mobile, revenues for the Enterprise segment were up in the fourth quarter compared to 2020 (+0.7%), and returned to growth for the full year (+0.5%).
Revenues for IT and Integration Services now account for more than 41% of Enterprise revenues, an increase of 2 points from 2020.
This accelerated transition from high-margin legacy activities to the Group's new growth drivers explains the 8.3% decline in 2021 EBITDAaL, which was also affected by the employee shareholding operation at the end of the year. Against this backdrop, 2022 EBITDAaL is still expected to decline slightly and the objective of the future general management of Enterprise will be to return to growth from 2023.
International Carriers & Shared Services
In millions of euros | 4Q 2021 | change comparable basis | change historical basis | 12M 2021 | change comparable basis | change historical basis | ||
Revenues | 381 | 2.3 % | 2.9 % | 1,515 | 4.2 % | 4.5 % | ||
Wholesale | 264 | 1.0 % | 2.0 % | 1,056 | 1.0 % | 1.7 % | ||
Other revenues | 117 | 5.2 % | 5.1 % | 460 | 12.3 % | 11.5 % | ||
EBITDAaL | (237) | (27.9)% | 3.0 % | |||||
EBITDAaL / Revenues | (15.6)% | (2.9 pt) | 1.2 pt | |||||
Operating Income | 1,217 | na | na | |||||
eCAPEX | 243 | 168.1 % | 82.7 % | |||||
eCAPEX / Revenues | 16.0 % | 9.8 pt | 6.9 pt |
Revenues from International Carriers and Shared Services grew 2.3% in the fourth quarter. International wholesale services also rose slightly. Other revenues continue to benefit from growth in Orange Marine's cable-laying and survey activities, albeit to a lesser extent than in previous quarters.
The decline in EBITDAaL in 2021 (-27.9%) was primarily due to increased sponsoring costs related to rights for the 2024 Paris Olympic Games and higher payroll costs related to the 2021 employee shareholding program.
In millions of euros | 12M 2021 | change comparable basis | change historical basis | |||||
Net Banking Income (NBI) | 109 | 57.0 % | 57.8 % | |||||
Cost of bank credit risk | (46) | 46.3 % | 46.3 % | |||||
Operating Income | (182) | 9.3 % | 7.0 % | |||||
eCAPEX | 24 | (26.8)% | (20.1)% |
EBITDAaL improving
The level of Net Banking Income (NBI) increased strongly from 69 million euros in 2020 to 109 million euros in 2021 (+57.0%). This performance resulted from growth, both in volume and value, of the customer base which reached 1.7 million customers in
Growth in NBI drove up EBITDAaL, which improved by 34 million euros in 2021.
Calendar of upcoming events
Contacts
Press: sylvain.bruno@orange.com tom.wright@orange.com | Financial communication: (analysts and investors) p.lambert@orange.com Aurélia Roussel aurelia.roussel@orange.com Andrei Dragolici andrei.dragolici@orange.com louise.racine@orange.com honghai.vuong@orange.com |
Disclaimer
This press release contains forward-looking statements about Orange’s financial situation, results of operations and strategy. Although we believe these statements are based on reasonable assumptions, they are subject to numerous risks and uncertainties, including matters not yet known to us or not currently considered material by us, and there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved. More detailed information on the potential risks that could affect our financial results is included in the Universal Registration Document filed on
Appendix 1: financial key indicators
Quarterly data
In millions of euros | 4Q 2021 | 4Q 2020 comparable basis | 4Q 2020 historical basis | variation comparable basis | change historical basis | |
Revenues | 11,148 | 11,097 | 10,917 | 0.5 % | 2.1 % | |
4,658 | 4,727 | 4,744 | (1.5)% | (1.8)% | ||
2,833 | 2,875 | 2,715 | (1.5)% | 4.3 % | ||
1,687 | 1,548 | 1,515 | 9.0 % | 11.4 % | ||
Enterprise | 2,053 | 2,038 | 2,050 | 0.7 % | 0.2 % | |
International Carriers & Shared Services | 381 | 372 | 370 | 2.3 % | 2.9 % | |
(464) | (463) | (477) | ||||
EBITDAaL (1) | 3,179 | 3,201 | 3,182 | (0.7)% | (0.1)% | |
o/w Telecom activities | 3,225 | 3,259 | 3,241 | (1.1)% | (0.5)% | |
As % of revenues | 28.9 % | 29.4 % | 29.7 % | (0.4 pt) | (0.8 pt) | |
o/w | (46) | (59) | (59) | 22.1 % | 22.1 % | |
eCAPEX | 2,106 | 2,245 | 2,247 | (6.2)% | (6.3)% | |
o/w Telecom activities | 2,096 | 2,237 | 2,238 | (6.3)% | (6.3)% | |
as % of revenues | 18.8 % | 20.1 % | 20.5 % | (1.3 pt) | (1.7 pt) | |
o/w | 10 | 9 | 9 | 11.8 % | 11.8 % | |
EBITDAaL - eCAPEX | 1,073 | 956 | 936 | 12.3 % | 14.7 % |
(1) EBITDAaL adjustments are described in Appendix 2.
31 December data
In millions of euros | 12M 2021 | 12M 2020 comparable basis | 12M 2020 historical basis | variation comparable basis | change historical basis | |
Revenues | 42,522 | 42,201 | 42,270 | 0.8 % | 0.6 % | |
18,092 | 18,394 | 18,461 | (1.6)% | (2.0)% | ||
10,579 | 10,665 | 10,580 | (0.8)% | (0.0)% | ||
6,381 | 5,770 | 5,834 | 10.6 % | 9.4 % | ||
Enterprise | 7,757 | 7,718 | 7,807 | 0.5 % | (0.6)% | |
International Carriers & Shared Services | 1,515 | 1,454 | 1,450 | 4.2 % | 4.5 % | |
(1,802) | (1,801) | (1,861) | ||||
EBITDAaL (1) | 12,566 | 12,635 | 12,680 | (0.5)% | (0.9)% | |
o/w Telecom activities | 12,696 | 12,799 | 12,839 | (0.8)% | (1.1)% | |
As % of revenues | 29.9 % | 30.3 % | 30.4 % | (0.5 pt) | (0.5 pt) | |
6,867 | 7,073 | 7,163 | (2.9)% | (4.1)% | ||
2,830 | 2,914 | 2,932 | (2.9)% | (3.5)% | ||
2,265 | 1,939 | 1,964 | 16.8 % | 15.3 % | ||
Enterprise | 970 | 1,058 | 1,023 | (8.3)% | (5.2)% | |
International Carriers & Shared Services | (237) | (185) | (244) | (27.9)% | 3.0 % | |
o/w | (131) | (165) | (160) | 20.7 % | 18.3 % | |
Operating Income | 2,521 | 5,537 | 5,521 | (54.5)% | (54.3)% | |
o/w Telecom activities | 2,702 | 5,736 | 5,715 | (52.9)% | (52.7)% | |
o/w | (182) | (200) | (195) | 9.3 % | 7.0 % | |
Consolidated net income | 778 | 5,055 | (84.6)% | |||
Net income attributable to equity owners of the Group | 233 | 4,822 | (95.2)% | |||
eCAPEX | 7,660 | 7,103 | 7,132 | 7.8 % | 7.4 % | |
o/w Telecom activities | 7,636 | 7,070 | 7,102 | 8.0 % | 7.5 % | |
as % of revenues | 18.0 % | 16.8 % | 16.8 % | 1.2 pt | 1.2 pt | |
o/w | 24 | 33 | 30 | (26.8)% | (20.1)% | |
EBITDAaL - eCAPEX | 4,906 | 5,532 | 5,548 | (11.3)% | (11.6)% | |
Organic cash-flow (telecom activities) | 2,401 | 2,494 | (3.7)% |
(1) EBITDAaL adjustments are described in Appendix 2.
In millions of euros | 2021 | 2020 | |
Net financial debt (1) | 24,269 | 23,489 | |
Ratio of financial debt / EBITDAaL from telecom activities (2) | 1.91 | 1.83 |
(1) Net financial debt as defined and used by Orange does not include
(2) The ratio of net financial debt to EBITDAaL for telecoms activities is calculated as the ratio of the Group's net financial debt compared to EBITDAaL for telecoms activities calculated over the previous 12 months.
Appendix 2: adjusted data to income statement items
Quarterly data
4Q 2021 | 4Q 2020 historical basis | |||||||
In millions of euros | Adjusted data, | Presentation adjustments, | Income statement, | Adjusted data, | Presentation adjustments, | Income statement, | ||
Revenues | 11,148 | - | 11,148 | 10,917 | - | 10,917 | ||
External purchases | (4,919) | (20) | (4,939) | (4,877) | (6) | (4,883) | ||
Other operating income | 243 | 53 | 296 | 201 | - | 201 | ||
Other operating expense | (217) | (92) | (309) | (174) | (47) | (221) | ||
Labor expenses | (2,270) | (1,255) | (3,525) | (2,132) | (59) | (2,190) | ||
Operating taxes and levies | (363) | (5) | (368) | (340) | - | (340) | ||
Gains (losses) on disposal of fixed assets, investments and activities | na | 2,133 | 2,133 | na | 155 | 155 | ||
Restructuring costs | na | (47) | (47) | na | (14) | (14) | ||
Depreciation and amortization of financed assets | (21) | - | (21) | (18) | - | (18) | ||
Depreciation and amortization of right-of-use assets | (388) | - | (388) | (365) | - | (365) | ||
Impairment of right-of-use assets | 0 | (31) | (31) | - | (52) | (52) | ||
Interests expenses on liabilities related to financed assets | (0) | 0 | na | (0) | 0 | na | ||
Interests expenses on lease liabilities | (34) | 34 | na | (29) | 29 | na | ||
EBITDAaL | 3,179 | 771 | na | 3,182 | 7 | na | ||
Significant litigation | (45) | 45 | na | (39) | 39 | na | ||
Specific labor expenses | (1,256) | 1,256 | na | (52) | 52 | na | ||
Fixed assets, investments and business portfolio review | 2,133 | (2,133) | na | 155 | (155) | na | ||
Restructuring program costs | (78) | 78 | na | (66) | 66 | na | ||
Acquisition and integration costs | (18) | 18 | na | (21) | 21 | na | ||
Interests expenses on liabilities related to financed assets | na | (0) | (0) | na | (0) | (0) | ||
Interests expenses on lease liabilities | na | (34) | (34) | na | (29) | (29) |
31 December data
12M 2021 | 12M 2020 historical basis | |||||||
In millions of euros | Adjusted data, | Presentation adjustments, | Income statement, | Adjusted data, | Presentation adjustments, | Income statement, | ||
Revenues | 42,522 | - | 42,522 | 42,270 | - | 42,270 | ||
External purchases | (17,950) | (23) | (17,973) | (17,684) | (6) | (17,691) | ||
Other operating income | 730 | 53 | 783 | 604 | - | 604 | ||
Other operating expense | (535) | (165) | (700) | (560) | (229) | (789) | ||
Labor expenses | (8,626) | (1,291) | (9,917) | (8,465) | (25) | (8,490) | ||
Operating taxes and levies | (1,890) | (36) | (1,926) | (1,924) | - | (1,924) | ||
Gains (losses) on disposal of fixed assets, investments and activities | na | 2,507 | 2,507 | na | 228 | 228 | ||
Restructuring costs | na | (331) | (331) | na | (25) | (25) | ||
Depreciation and amortization of financed assets | (84) | - | (84) | (55) | - | (55) | ||
Depreciation and amortization of right-of-use assets | (1,481) | - | (1,481) | (1,384) | - | (1,384) | ||
Impairment of right-of-use assets | 0 | (91) | (91) | - | (57) | (57) | ||
Interests expenses on liabilities related to financed assets | (1) | 1 | na | (1) | 1 | na | ||
Interests expenses on lease liabilities | (120) | 120 | na | (120) | 120 | na | ||
EBITDAaL | 12,566 | 744 | na | 12,680 | 6 | na | ||
Significant litigation | (134) | 134 | na | (211) | 211 | na | ||
Specific labor expenses | (1,276) | 1,276 | na | (12) | 12 | na | ||
Fixed assets, investments and business portfolio review | 2,507 | (2,507) | na | 228 | (228) | na | ||
Restructuring program costs | (422) | 422 | na | (83) | 83 | na | ||
Acquisition and integration costs | (51) | 51 | na | (37) | 37 | na | ||
Interests expenses on liabilities related to financed assets | na | (1) | (1) | na | (1) | (1) | ||
Interests expenses on lease liabilities | na | (120) | (120) | na | (120) | (120) |
Appendix 3: economic CAPEX to investments in property, plant and intangible investment
In millions of euros | 4Q 2021 | 4Q 2020 historical basis | 12M 2021 | 12M 2020 historical basis | ||
eCAPEX | 2,106 | 2,247 | 7,660 | 7,132 | ||
Elimination of proceeds from sales of property, plant and equipment and intangible assets | 64 | 179 | 163 | 444 | ||
Telecommunication licenses | 213 | 922 | 926 | 969 | ||
Financed assets | 16 | 68 | 40 | 241 | ||
Investments in property, plant and equipment and intangible assets | 2,399 | 3,415 | 8,789 | 8,787 |
Appendix 4: key performance indicators
In thousand, at the end of the period | 2021 | 2020 | |||||
Number of convergent customers | 11,533 | 11,295 | |||||
Number of mobile accesses (excluding MVNOs) (1) | 224,311 | 215,026 | |||||
o/w | Convergent customers mobile accesses | 20,937 | 20,272 | ||||
Mobile only accesses | 203,375 | 194,754 | |||||
o/w | Contract customers mobile accesses | 82,026 | 78,300 | ||||
Prepaid customers mobile accesses | 142,285 | 136,726 | |||||
Number of fixed accesses (2) | 46,365 | 47,168 | |||||
Fixed Retail accesses | 31,119 | 31,501 | |||||
Fixed Broadband accesses | 23,491 | 22,701 | |||||
o/w | Very high‑speed broadband fixed accesses | 12,302 | 10,113 | ||||
Convergent customers fixed accesses | 11,533 | 11,295 | |||||
Fixed accesses only | 11,958 | 11,405 | |||||
Fixed Narrowband accesses | 7,628 | 8,800 | |||||
Fixed Wholesale accesses | 15,246 | 15,667 | |||||
Group total accesses (1+2) | 270,676 | 262,194 |
2020 data is presented on a comparable basis.
Key indicators by country are presented in the "Orange investors data book 4Q 2021," available at www.orange.com under Finance/Results: www.orange.com/en/consolidated-results
Appendix 5: glossary
Key figures
Data on a comparable basis: data based on comparable accounting principles, scope of consolidation and exchange rates are presented for previous periods. The transition from data on an historical basis to data on a comparable basis consists of keeping the results for the period ended and then restating the results for the corresponding period of the preceding year for the purpose of presenting, over comparable periods, financial data with comparable accounting principles, scope of consolidation and exchange rate. The method used is to apply to the data of the corresponding period of the preceding year, the accounting principles and scope of consolidation for the period just ended as well as the average exchange rate used for the income statement for the period ended. Changes in data on a comparable basis reflect organic business changes. Data on a comparable basis is not a financial aggregate as defined by IFRS and may not be comparable to similarly-named indicators used by other companies.
EBITDAaL or “EBITDA after Leases”: operating income (i) before depreciation and amortization of fixed assets, effects resulting from business combinations, reclassification of cumulative translation adjustment from liquidated entities, impairment of goodwill and fixed assets, share of profits (losses) of associates and joint ventures, (ii) after interest on debts related to financed assets and on lease liabilities, and (iii) adjusted for significant litigation, specific labor expenses, fixed assets, investments and businesses portfolio review, restructuring programs costs, acquisition and integration costs and, where appropriate, other specific elements. EBITDAaL is not a financial aggregate as defined by IFRS standards and may not be directly comparable to similarly-named indicators in other companies.
eCAPEX or “economic CAPEX”: (i) acquisitions of property, plant and equipment and intangible assets, excluding telecommunications licenses and financed assets, (ii) less the price of disposal of property, plant and equipment and intangible assets. eCAPEX is not a financial performance indicator as defined by IFRS standards and may not be directly comparable to indicators referenced by similarly-named indicators in other companies.
Organic Cash Flow (telecoms activities): for the perimeter of the telecoms activities, net cash provided by operating activities, minus (i) lease liabilities repayments and debts related to financed assets repayments, and (ii) purchases and sales of property, plant and equipment and intangible assets, net of the change in the fixed assets payables, (iii) excluding effect of telecommunication licenses paid and significant litigations paid or received. Organic Cash Flow (telecoms activities) is not a financial aggregate defined by IFRS and may not be comparable to similarly-named indicators used by other companies.
Retail services (B2C + B2B): aggregation of revenues from (i) Convergent services, (ii) Mobile only services, (iii) Fixed only services and (iv) IT & integration services (see definitions). Retail Services (B2C+B2B) revenues include all revenues of a given scope excluding revenues from wholesale services, equipment sales and other revenues (see definitions).
Performance indicators
Fixed retail accesses: number of fixed broadband accesses (xDSL (ADSL and VDSL), FTTx, cable, Fixed-4G (fLTE) and other broadband accesses (satellite, Wimax and others)) and fixed narrowband accesses (mainly PSTN) and payphones.
Fixed wholesale accesses: number of fixed broadband and narrowband wholesale accesses operated by Orange.
Convergence
Convergent services: customer base and revenues from B2C Convergent retail offers, excluding equipment sales (see definition) defined as an offer combining at least a broadband access (xDSL, FTTx, cable or Fixed-4G (fLTE) with cell-lock) and a mobile voice contract (excluding MVNOs).
Convergent ARPO: average quarterly revenues per convergent offer (ARPO) calculated by dividing revenues from retail Convergent services offers invoiced to B2C customers generated over the past three months (excluding IFRS 15 adjustments) by the weighted average number of retail Convergent offers over the same period. ARPO is expressed by monthly revenues per convergent offer.
Mobile only services
Mobile only Services: revenues from mobile offers (mainly outgoing calls: voice, SMS and data) invoiced to retail customers, excluding convergent services and equipment sales (see definitions). The customer base includes customers with a contract excluding retail convergence, machine-to-machine contracts and prepaid cards.
Mobile only ARPO: average quarterly revenues from Mobile only (ARPO) calculated by dividing revenues from Mobile only retail services (excluding machine-to-machine and IFRS 15 adjustments) generated over the past three months by the weighted average of Mobile only customers (excluding machine-to-machine) over the same period. The ARPO is expressed as monthly revenues per Mobile only customer.
Fixed only services
Fixed only services: revenues from fixed retail offers, excluding B2C convergent offers and equipment sales (see definitions). It includes (i) fixed narrowband services (conventional fixed telephony), (ii) fixed broadband services, and (iii) business solutions and networks (with the exception of
Fixed only broadband ARPO: average quarterly revenues from fixed only broadband (ARPO) calculated by dividing the revenue from fixed only broadband retail services (excluding IFRS 15 adjustments) generated over the past three months by the weighted average of fixed only broadband customers over the same period. ARPO is expressed as monthly revenues per fixed only broadband customer.
IT & integration services
IT & Integration services: revenues from unified communication and collaboration services (Local Area Network and telephony, advising, integration and project management), hosting and infrastructure services (including Cloud Computing), applications services (customer relations management and other applications services), security services, video conferencing offers, machine-to-machine services (excluded connectivity) as well as sales of equipment related to the above products and services.
Wholesale
Wholesale: revenues from other carriers consists of (i) mobile services to other carriers including incoming traffic, visitor roaming, network sharing, national roaming and Mobile Virtual Network Operators (MVNOs), and (ii) fixed services to other carriers including national networking, services to international carriers, high-speed and very high-speed broadband access (fiber access, unbundling of telephone lines and xDSL access sales) and the sale of telephone lines on the wholesale market.
Equipment sales
Equipment sales: revenues from all mobile and fixed equipment sales, excluding (i) equipment sales associated with the supply of IT & Integration services, (ii) sales of network equipment related to the operation of voice and data services in the Enterprise operating segment, and (iii) equipment sales to dealers and brokers.
Other revenues
Other revenues: revenues including (i) equipment sales to brokers and dealers, (ii) portal, (iii) on-line advertising revenues, (iv) corporate transversal business line activities, and (v) other miscellaneous revenues.
1 Unless otherwise stated, the changes presented in this press release are on a comparable basis
2 Before taking into account the pending acquisition of Voo in
3 Retail services (B2C and B2B). See definition in the attached glossary.
4 Unless otherwise stated, the changes presented in this press release are on a comparable basis
5 Scope corresponding to Group indirect costs excluding (i)
6 Revenue related to the public switched telephone network.
Attachment
- PR_Orange_FY2021_results_EN_170222
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