Orange Sees Red With €2.77B Net Loss In H1  

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Forbes MC Staff   Forbes Monaco

Orange Sees Red With €2.77B Net Loss In H1  

French telecoms giant Orange SA has reported a net loss of €2.77 billion in the first half of 2021 compared to last year’s profit of €1.02 billion. 927 million

Operating loss was €1.75 billion, compared to €2.22 billion last year. In a conference call today, the company said its loss was due to goodwill impairments of €3.7 billion in Spain reflecting the downward revision of the short-term outlook in context to the health crisis and “increased competition” with six telecoms operators giving low-cost offers.

Orange group revenues, which amounted to €20.87 billion over the half-year, is still supported by performance in Africa and the Middle East where growth exceeds 10%, as well as from sales equipment which increased 18.4%.

The driving force behind the group, in Africa and the Middle East regions, is driven by the 7% year-on-year increase in its mobile customer base and the Orange Money service, which saw its turnover grow by 22.2%.

In terms of outlook, the group has maintained its objectives for the 2021 financial year, namely a “stable negative” gross operating surplus despite second quarter earnings after leases (EBITDAaL) dropping by 1.2% to €3.27 billion while revenue rose to €10.55 billion ($12.49 billion) compared to €10.29 billion in the second quarter of 2020.


Orange posted a drop in sales in its main markets, such as France and Europe, which recorded a loss of 0.5% and 0.3% respectively.

On fiber, Orange has garnered nearly 1.5 million additional customers over one year, an increase of 39.5%, and the company should benefit from the reopening of its stores and 5G to boost its equipment sales.

In Europe, where Orange is present in seven countries, sales were weighed down in Spain, whose turnover fell by 2.7%. Orange hopes to regain growth in this market in 2022.

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Forbes MC Staff   Forbes Monaco