France’s Orange Q4 core operating profit slips on lower deal returns By Reuters

PARIS (Reuters) – Orange, France’s largest telecoms operator, said on Thursday its fourth-quarter core operating profit fell 0.7%, as lower returns from co-cofinancing deals and high competition in Spain continued to weigh on its results.

Earnings before interest, tax, depreciation and amortization after leases (EBITDaL) fell to 3.18 billion euros ($ 3.61 billion) for the quarter ended Dec. 31. This beat the 3.16 billion-euro average of 18 analyst estimates compiled by the company.

Revenues were up 0.5% to 11.1 billion euros, bringing the total for the year to 42.5 billion euros.

Orange said full-year cash-flow from telecoms activities amounted to 2.4 billion euros, in line with its targets. In 2022, it sees core operating profits to grow between 2.5% and 3% and an organic cash flow of at least 2.9 billion euros.

The group maintained its dividend policy of 0.70 euros per share in 2022 and confirmed an organic cash flow from telecom activities of at least 3.5 billion euros next year.

($ 1 = $ 0.8807)