Orange (EU:ORA) saw its Paris-listed shares edge higher on Thursday after reporting third-quarter earnings that slightly exceeded analyst expectations, supported by steady customer growth and cost control measures.
Earnings before interest, taxes, depreciation, and amortization after leases (EBITDAaL) rose 3.7% year-on-year to €3.44 billion, just above the €3.43 billion anticipated by analysts. The company attributed the increase to expanding customer numbers and disciplined expense management.
Fiber-to-the-home customers grew to 16 million globally, up from 15.5 million in the previous quarter, while mobile customers increased to 100.4 million from 98.1 million. Growth was particularly strong in the Middle East and Africa, where revenue rose at a double-digit pace for the tenth consecutive quarter.
A “gradual deterioration” of the company’s French market over the last few quarters “is not worsening” either, according to analysts at Kepler Cheuvreux, who described the overall results as “reassuring.”
Orange also upgraded its full-year guidance, now expecting core income growth of at least 3.5%, compared with its previous forecast of “over 3%.” Analysts including Javier Borrachero at Kepler Cheuvreux said the revised outlook was even “more encouraging” than the Q3 performance, especially given the “challenging context” and “a tough macroeconomic backdrop that is also having a larger negative impact than expected in Orange business.”
CFO Laurent Martinez highlighted that the company’s balance sheet provides sufficient flexibility to pursue M&A opportunities in France and Spain. Orange has already submitted a bid for the remaining 50% stake in MasOrange and is part of a €17 billion joint offer with Bouygues Telecom and Free-Groupe Iliad to acquire a large portion of Altice’s French operations. However, the company cautioned that “there is no certainty” the latter deal will be finalized.
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